New players reshape Vietnamese aviation market
The latest figures published by the Civil Aviation Authority of Viet Nam revealed that the Vietnamese aviation market saw noticeable changes in 2019, driven by the participation of private carriers.
Vietnam Airlines saw a drop to 33.3 per cent in market share in December 2019, from approximately 34.5 per cent at the beginning of the year.
Jetstar Pacific and VASCO respectively held market shares of 10.6 per cent (down from 14.2 per cent at the beginning of the year) and 1.6 per cent (down from 2 per cent).
While three carriers under Vietnam Airlines Group saw slight decreases in market share, private carriers saw expansion.
Vietjet held 42.2 per cent market share in December 2019, compared to 41.2 per cent in January 2019.
Bamboo Airways, after its official launch in January 2019, saw massive growth.
In December 2019, the carrier owned more than 12.3 per cent market share, six times higher than its share of 2 per cent in January.
Bamboo Airways announced before its establishment that it would find new sources of customers, instead of competing with other airlines.
The aviation industry saw growth of 13 per cent in 2019, indicating an expansion in market capacity.
However, the changes in aviation market over the past 12 months showed a significant shift in customers’ selection of service providers.
Entering 2020, the Vietnamese aviation market is expected to see even more changes after Bamboo Airways announced its goal of 30 per cent domestic market share. — VNS
Airports Council International forecasts that Vietnam will have the fastest air passenger growth in the world in the period of 2018-2040 with an average annual growth rate of 6.2%.
The Prime Minister has agreed to raise the maximum foreign ownership ratio in Vietnam’s aviation enterprises by 4 percent only.