VietNam Business: Vietnam Airlines

Showing posts with label Vietnam Airlines. Show all posts

Monday, February 21, 2011

Vietnam Airlines cancels 30 flights due to downpours

HCMC – Vietnam Airlines on Monday said that torrential rains in central Vietnam in the past days had forced it to cancel at least 30 flights to Vinh and Chu Lai, but it pledged more flights than usual soon to transport stranded passengers.

The national flag air carrier aborted 28 services to and from Vinh City and two from and to Chu Lai in Quang Nam Province from October 15 to 18. Meanwhile, Jetstar Pacific said it had to divert two flights from Tan Son Nhat Airport to Noi Bai Airport instead of landing in Vinh on October 17 and 18.

Vietnam Airlines conducted two flights from Vinh to HCMC on Monday, using Airbus A321, and plans four services out of its normal schedule between the central city and HCMC on Tuesday.

The carrier plans to resume six daily flights between HCMC and Vinh and two daily services between Hanoi and Vinh as usual from Tuesday. Vietnam Airlines said it had prepared for Typhoon Megi, which is forecast to reach the Eastern Sea on Tuesday afternoon and may affect the flights bound for central Vietnam.

The carrier called for passengers to check the latest information about its flights to the region on its website at www.vietnamairlines.com and booking offices.

Jetstar Pacific told the Daily that it was keeping itself abreast of developments of Super Storm Megi in order to have proper plans to operate its flights to central Vietnam and mitigate impact on passengers.

Vietnam’s civil aviation regulations clarify flight cancellations due to storms are unavoidable so airlines do not have to pay compensation for affected passengers. Airlines often help passengers travel by road to their planned destinations if they have to divert their planes to a new destination because of bad weather.

Thursday, February 17, 2011

Jetstar Pacific expands aircraft fleet to seven

HCMC - Jetstar Pacific increased its aircraft fleet to seven for domestic services on Sunday when the local low-cost carrier took delivery of one new Airbus A320 at Tan Son Nhat International Airport.

The new 180-seat plane is part of Jetstar Pacific’s plan to gradually replace its Boeing B737-400s and expand its all Airbus aircraft fleet to 15 by 2014. The carrier now has five Boeing B737-400s and two Airbus of the type.

Jetstar Pacific said the second Airbus A320 had registration number VNA198 and would be put into service on October 20. It will enable the second largest carrier in Vietnam after Vietnam Airlines to operate more than 40 daily domestic flights to HCMC, Hanoi, Danang, Hue, Vinh and Hai Phong.

Le Song Lai, chief executive officer of Jetstar Pacific, said the new Airbus aircraft would help the airline save a lot of operation and maintenance costs as well as increase domestic frequencies ahead of the upcoming Lunar New Year, or Tet, early next year.

Jetstar Pacific told the Daily on Sunday that air tickets had almost sold out for certain flights from HCMC to Vinh, Hue and Haiphong from the 26th to 30th of the twelfth lunar month and the 6th to 8th of the first lunar month on the opposite directions.

Jetstar Pacific has plans to operate more domestic flights before and during the Lunar New Year, which falls on the first day of the lunar year, or in February 2011.

Vietnam Airlines is mapping out plans for more flights during the Lunar New Year as fares for the flagship carrier’s flights on certain routes during this special occasion are becoming scarce.

Last Tet, Vietnam Airlines operated nearly 1,000 more domestic flights from HCMC to Hanoi and central Vietnam due to stronger demand for air travel.

Wednesday, February 16, 2011

Vietnam Airlines to change terminal in Paris

HCMC - Vietnam Airlines as a SkyTeam will land and take off at Terminal 2E at Charles de Gaulle Airport in Paris from October 31 to harmonize with the operations of other SkyTeam member carriers.

Vietnam Airlines’ forthcoming move to the new terminal from Terminal 2C of the airport is also aimed at providing passengers with the opportunity to use a better waiting hall and kiosks for completing check-in procedures.

Pham Viet Thanh, deputy general director of Vietnam Airlines, clarified the spacious and well-furbished Terminal 2E would offer passengers new levels of comfort and convenience when traveling to and from Charles de Gaulle or transiting at this European airport before heading to other destinations.

Vietnam Airlines’ holders of business-class tickets and members of its Golden Lotus program will be allowed to enjoy services at the business lounge of Air France at Terminal 2E from that day.

In addition to Air France and Vietnam Airlines, other members of SkyTeam having their flights at Terminal 2E are Royal Dutch Airlines, Delta Airlines, Aeroflot, Korean Air, China Southern Airlines and Aero Mexico.

Vietnam Airlines spent heavily improving its services and opening more domestic and international flights before it became a full member of the world’s second largest global airline network after Star Alliance on June 10 this year. The airline is expanding its aircraft fleet to 70 by the end of this year to 115 by 2015 and 165 by 2020.

Vietnam Airlines operates more than 290 daily flights to 20 domestic and 26 international destinations. At present, the national flag carrier uses wide-body Boeing 777 aircraft for eight flights weekly from Vietnam to Paris.

Air France will begin its three non-stop services between Paris and HCMC every week from November 2 instead of flying via Bangkok at the moment to meet rising demand for travel to and from Vietnam.

Air France’s 747-400 aircraft will leave Tan Son Nhat Airport for Charles de Gaulle Airport in the evening of Wednesdays, Fridays and Sundays. The opposite services will depart from the European airport on Tuesdays, Thursdays and Saturdays and land on Tan Son Nhat at 4:55 p.m. the next days.

From November, Air France will also have two weekly code-share services from HCMC and five frequencies from Hanoi, and these non-stop flights will be operated by Vietnam Airlines under an agreement between the two carriers.

Vietnam Airlines’ non-stop services will depart from HCMC on Tuesday and Saturday nights and from Noi Bai Airport in Hanoi at 11:55 p.m. on Tuesdays, Wednesdays, Fridays, Saturdays and Sundays for Charles de Gaulle.

Monday, February 14, 2011

Vietnam Airlines to begin training pilots at home

Vietnam Airlines will send trainees for basic pilot training to the country’s first flight training institute in Vung Tau as part of its initiative to begin training at home.

The state-owned carrier signed an agreement with the institute, the Viet Flight Training Joint Stock Co, last Thursday.

Three groups of 20 trainees each will undergo a 72-week course, partially in France with assistance from the ESMA Aviation Academy, a renowned French training center.

By the end of 2012 it hopes to carry out the entire training in Vietnam.

Nguyen Sy Hung, the carrier’s chairman, said at the signing ceremony: “This is to help Vietnam Airlines actively control its pilot training plans, lower costs, and thus deliver a much stronger performance.”

By the end of this year the airlines will employ 636 pilots, 60 percent of them Vietnamese, he said, adding the figure will go up to 75 percent by 2015.

The carrier also plans to train 100 pilots every year during the decade through 2020 to achieve its target of expanding its crew size by 10 percent.

Viet Flight is the first Vietnamese flight training institute allowed to award the Airline Transport Pilot License.

It was established in June 2008 by Vietnam Airlines Corporation, Service Flight Corp of Vietnam, Vietnam Aircraft Leasing Co, and ESMA.

Between 2010 and 2011, it will run 4 more pilot training courses for carriers in Vietnam and in the region.

Thursday, February 10, 2011

Commercial pilots to be trained in Vietnam

The Vietnam Airlines Corp. and the Bay Viet (Viet Flight) Flight
Training Joint Stock Company have made a deal to train 60 pilots in
Vietnam during the 2010-2012 period.

Under the contract, signed in Ho Chi Minh City on October 14, every
72-week training course will be held in Vietnam and France, each
with 20 trainees. The training courses will be completed by the end of
2012.

Vietnam Airlines estimates it will need at
least 636 pilots by 2010, 60 percent of them Vietnamese. To raise the
rate of Vietnamese pilots to 75 percent by 2015, the carrier plans to
recruit at least 100 extra pilots a year to raise the number of pilots
by 10 percent during 2011-2020.

The Chairman of
Vietnam Airlines Corp Nguyen Sy Hung said that the contract with Bay
Viet, the first pilot training centre in Vietnam to have an Air
Transport Pilots Licence (ATPL), will help the airline to take the
initiative and train its own pilots, cutting costs and raising
efficiency.

The deal also proves the airline’s
commitment to its domestic partners to implement its strategy on
personnel development to ensure sustainable growth and fulfill its plans
to develop the country’s aviation industry.

Bay
Viet’s General Director Nguyen Nam Lien, said the company will start
four other pilots courses for other airlines in Vietnam and around
the region in 2010 and 2011.

In the first phase,
Bay Viet will work with Vietnam ’s Aviation Academy and provide
flight training at Cam Ranh Airport in Nha Trang.

These are the first important steps in the setting up of a pilots
training centre to ensure the aviation industry’s development in the
future./.

Saturday, February 5, 2011

Air travel surges 20 percent in 9 months

The aviation market in the first nine months saw a year-on-year increase
of more than 20 percent in the number of passengers, estimated the
Civil Aviation Administration of Vietnam.

The administration estimated that roughly 15 million passengers went
through the country's airports in the first nine months of this year, of
which Vietnam Airlines, Jetstar Pacific and Vietnam Air Service Co
(Vasco) accounted for more than 11 million.

In the
first nine months, the administration also estimated that roughly
340,000 tonnes of goods were transported via air, an increase of 36
percent over the same period last year.

Industry
insiders forecast the country's aviation market in the last quarter will
continue to surge due to an increased number of flights licensed by the
aviation authorities for foreign airlines including Turkish Airlines,
Poland 's LOT and Qatar Airways.

Vo Huy Cuong,
director of the administration's Air Transport Department, attributed
the steady growth to the continuing strong expansion of the domestic
segment backed by flagship carrier Vietnam Airlines.

Cuong said that Vietnam Airlines and its subsidiary Vasco still account
for the lion's share of around 80 percent of the domestic market while
the rest is covered by Jetstar Pacific.

With the
introduction of Air Mekong and Blue Sky Air recently, which lifts the
number of operational airlines in the country to nine, it is expected
that the competition in the domestic aviation market will increase.

The administration expects that the country's overall aviation market
will grow roughly 20 percent in 2010, higher than the 14 percent figure
it projected earlier this year, thanks to more domestic services and a
significant increase in the number of international visitors.

The administration's statistics showed that roughly 26.2 million
passengers and 445,800 tonnes of cargo were transported by air last
year, four times higher than in 2000./.

Friday, February 4, 2011

Air travel surges 20% in 9 months

HA NOI — The aviation market in the first nine months saw a year-on-year increase of more than 20 per cent in the number of air travel passengers, estimated the Civil Aviation Administration of Viet Nam.

The administration estimated that roughly 15 million passengers went through the country's airports in the first nine months of this year, of which Vietnam Airlines, Jetstar Pacific and Viet Nam Air Service Co (Vasco) accounted for more than 11 million.

In the first nine months, the administration also estimated that roughly 340,000 tonnes of goods were transported via air, an increase of 36 per cent over the same period last year.

Industry insiders forecast the country's aviation market in the last quarter would continue to surge due to an increased number of flights licensed by the aviation authorities for foreign airlines including Turkish Airlines, Poland's LOT and Qatar Airways.

Vo Huy Cuong, director of the administration's Air Transport Department, attributed the steady growth to the continuing strong expansion of the domestic segment backed by flagship carrier Vietnam Airlines.

Cuong said that Vietnam Airlines and its subsidiary Vasco still accounted for the lion's share of around 80 per cent of the domestic market while the rest was covered by Jetstar Pacific.

With the introduction of Air Mekong and Blue Sky Air recently, which lifts the number of operational airlines in the country to nine, it was expected that the competition in the domestic aviation market would increase.

The administration expected that the country's overall aviation market would grow roughly 20 per cent in 2010, higher than the 14 per cent figure it had projected earlier this year, thanks to more domestic services and a significant increase in the number of international visitors.

The administration's statistics showed that roughly 26.2 million passengers and 445,800 tonnes of cargo were transported by air last year, four times higher than in 2000. — VNS

Aviation business sees 20 percent rise

Photo: AFP

Industry insiders forecast the country's aviation market in the last quarter will continue to surge due to an increased number of flights licensed by the aviation authorities for foreign airlines including Turkish Airlines, Poland 's LOT and Qatar Airways.

The aviation market in the first nine months saw a year-on-year increase of more than 20 percent in the number of passengers, estimated the Civil Aviation Administration of Vietnam.

The administration estimated that roughly 15 million passengers went through the country's airports in the first nine months of this year, of which Vietnam Airlines, Jetstar Pacific and Vietnam Air Service Co (Vasco) accounted for more than 11 million.

In the first nine months, the administration also estimated that roughly 340,000 tonnes of goods were transported via air, an increase of 36 percent over the same period last year.

Vo Huy Cuong, director of the administration's Air Transport Department, attributed the steady growth to the continuing strong expansion of the domestic segment backed by flagship carrier Vietnam Airlines.

Cuong said that Vietnam Airlines and its subsidiary Vasco still account for the lion's share of around 80 percent of the domestic market while the rest is covered by Jetstar Pacific.

With the introduction of Air Mekong and Blue Sky Air recently, which lifts the number of operational airlines in the country to nine, it is expected that the competition in the domestic aviation market will increase.

The administration expects that the country's overall aviation market will grow roughly 20 percent in 2010, higher than the 14 percent figure it projected earlier this year, thanks to more domestic services and a significant increase in the number of international visitors.

The administration's statistics showed that roughly 26.2 million passengers and 445,800 tonnes of cargo were transported by air last year, four times higher than in 2000.

Vietnam Airlines has recenty launched online check-in, reducing he pressure at airports at peak times.

The carrier has launched its web check-in service for international flights enabling passengers flying out of Hanoi and Ho Chi Minh City, Vientiane in Laos, Phnom Penh and Siem Reap in Cambodia, Seoul and Pusan in South Korea, and Kuala Lumpur in Malaysia to check in online.

The service will be available from 20 to four hours before departure.

Passengers have to print their boarding pass on A4-sized paper to complete the check-in and be present at the counter at least 45 minutes before the flight’s departure.

But passengers who want to check in luggage, have requested for special services, or have discount tickets cannot avail this service.

The carrier launched a web check-in service on domestic routes in August last year for travel from Hanoi, Da Nang, and HCMC.

Thursday, February 3, 2011

Jan-Sept aviation market growth put at 20%

Passengers wait for reclaiming their luggage at Noi Bai Airport. Vietnam’s aviation market is poised to post strong growth in 2010 as more people travel by air in the country - Photo: Mong Binh

HCMC – The country’s civil aviation market registered strong growth in the first nine months of the year, with both passenger and cargo segments picking up over 20% year-on-year, according to the Civil Aviation Administration of Vietnam (CAAV).

CAAV’s preliminary figures about the market released on Tuesday indicate more than 15 million passengers went through Vietnam’s airports in the period, up more than 20% from a year ago.

Of the number, Vietnamese carriers were responsible for more than 11 million, up 24% year-on-year. The number of passengers on domestic and international flights of the flagship carrier Vietnam Airlines exceeded nine million, up by a whopping 34% compared to the first nine months of last year.

Jetstar Pacific still took small domestic market share, transporting some 1.5 million passengers in the first three quarters. This low-cost carrier has only 40 daily flights while the number of Vietnam Airlines domestic and international services is more than 290.

The strong expansion of Vietnam’s overall aviation market in the period was credited to Vietnam Airlines’ aggressive launch of new domestic and international air routes and its increase of flight frequencies.

In the period, Vietnam Airlines started to fly on HCMC-Danang-Dalat and HCMC-Can Tho-Phu Quoc runs, and from Hanoi to Vinh and Chu Lai in central Vietnam. On the international front, the airline began services from Hanoi to Japan’s Osaka, China’s Shanghai and Myanmar’s Yangon among others.

The more promotional air tickets offered by the two local players, Vietnam Airlines and Jetstar Pacific, stimulated demand for air travel in January-September. Growth in international arrivals also backed the aviation market.

According to the Vietnam National Administration of Vietnam (VNAT), international visitors to Vietnam in the first three quarters jumped 34.2% year-on-year to 3.73 million. Air travelers to the country numbered nearly three million, up 32.7% over the same period last year.

As for the cargo segment, CAAV said domestic and foreign carriers transported 340,000 tons from January till September, a significant year-on-year increase of more than 36%.

The nation’s aviation market is expected to gain faster growth in the fourth quarter, as private airline Air Mekong entered the market on October 9 and the fact that more foreign airlines will launch their services to and from Vietnam.

CAAV has permitted Turkish Airlines and LOT Polish Airlines to fly to Vietnam later this year while Qatar Airways is gearing up for new flights to Noi Bai Airport in Hanoi and more services to Tan Son Nhat Airport in HCMC.

Air Mekong operates eight routes using four Bombardier jets and will increase the number to 10 in November this year with around 34 daily flights to the airports in Hanoi, HCMC, Danang, Con Dao, Pleiku, Buon Ma Thuot and Phu Quoc.

Vietnam Airlines is targeting 12 million passengers for its domestic and international flights this year compared to just over 9.34 million last year.

Saturday, January 22, 2011

Grand celebrations, floods cause scarcity of air tickets

VALC gets fourth ATR72-500

HCMC - Air tickets for flights between HCMC and Hanoi have become scarce as demand for air travel on this route is rising because of the ongoing 1,000th birthday festival of Thang Long-Hanoi and flooding impacts in central Vietnam.

Vietnam Airlines on Thursday started to increase flight frequencies between the two biggest cities of Vietnam, especially those from HCMC to Hanoi, where the grand celebrations are taking place until October 10. For this reason, the airline adds 13 flights to this route until Monday.

The national flag carrier operated two more flights from HCMC to Hanoi on Thursday, five on Friday, one on each of Saturday and Sunday, and four more services from Hanoi to HCMC on October 11.

Besides the millennial celebrations, Vietnam Airlines has decided to increase frequencies because flooding in certain parts of central Vietnam has impacted travel by road and rail in the region, pushing the demand for air travel higher.

Vietnam Airlines said that with the extra services, it operated 32 daily flights on average on the HCMC-Hanoi route until Monday and offered 8,860 seats a day to the market.

Jetstar Pacific will not increase flight frequencies on the HCMC-Hanoi route as this low-cost carrier cannot arrange its aircraft reasonably on the fact that the demand is much higher for air travel from HCMC to Hanoi than the opposite direction on the same days.

A Jetstar Pacific executive told the Daily on the phone on Thursday that it had sold out all the air tickets for its flights from HCMC to Hanoi until October 9, and the tickets for the services on October 10 are running out. Almost all the tickets for the flights on the opposite direction on Monday and Tuesday have been booked.

Jetstar Pacific operates 10 flights between HCMC and the capital city, using Airbus A320s with 180 seats and Boeing 737-400s with 168 seats. The country’s second largest airline now has one Airbus and five Boeing aircraft.

Air Mekong cannot give much help in the air ticket shortage as the start-up airline will launch services this Saturday, with around two flights for the HCMC-Hanoi route using Bombardier CRJ-900s configured with 90 Deluxe and Economy-class seats.

The private airline is expected to receive an air operator certificate (AOC) from the Civil Aviation Administration of Vietnam in Phu Quoc Airport in the Mekong Delta province of Kien Giang on Friday, and announce its maiden services on Saturday.

Initially, Air Mekong will conduct 26 daily flights by four Bombardier CRJ-900s before increasing frequencies to 34 daily services flights on 10 domestic air routes to the airports in HCMC, Hanoi, Phu Quoc, Con Dao, Pleiku, Buon Ma Thuot and Dalat, and the central city of Danang.

* Vietnam Aircraft Leasing Join Stock Co. (VALC) on Thursday took delivery of a fourth ATR72-500 plane in France’s city of Toulouse as part of a batch of five aircraft of this type the local company already ordered from manufacturer ATR.

VALC will get the fifth ATR72-500 in December this year in the US$100 million-plus deal between the company and French Avion de Transport Regional (ATR). All the aircraft will be leased to Vietnam Airlines.

Tran Long, general director of VALC, said the company was completing procedures to receive 10 Airbus A321-200s from the European aircraft maker in 2012 and 2013. Again, these planes will be put into service by Vietnam Airlines.

Tuesday, December 28, 2010

Air France unveils non-stop services to HCMC

Thierry Beragnes of Air France introduces the non-stop services between Paris and Vietnam at the press conference in HCMC on Wednesday - Photo: Mong Binh

HCMC - Air France on Wednesday announced it would operate non-stop services between Paris and HCMC and will increase frequencies from Vietnam from November this year, a time when demand for travel to and from Vietnam surges.

Thierry Beragnes, Air France’s country manager in Vietnam, told the Daily after a press conference held in HCMC on Wednesday to introduce the new services that the carrier would leave Tan Son Nhat Airport for Charles de Gaulle Airport in Paris at 10:45 p.m. on Wednesdays, Fridays and Sundays from November 2.

The services from Charles de Gaulle Airport will be at 11:25 p.m. on Tuesdays, Thursdays and Saturdays, and land on Tan Son Nhat at 4:55 p.m. the next days.

Air France will use its Boeing 747-400 equipped with 40 business and 396 economy seats for the three weekly non-stop services, which Beragnes said would mark a new step in its development in the Vietnamese market.

Air France showed confidence in the Vietnamese market, which he said had changed for the better compared to six years ago when it suspended a code-share pact with Vietnam Airlines for non-stop flights from Paris, leaving the Vietnamese airline the sole operator of direct flights on this route.

“The economic context has changed and Vietnam on Thursday is quite different from six years ago in terms of development. An airline like Air France is really confident in the development of Vietnam,” Beragnes told reporters.

Air France will start to operate the new generation Boeing 777-300ER on the Paris-HCMC route in January to offer a full range of Air France in-flight products, including the new Premium Voyageur seat, which is positioned between the business and economy cabins.

Beragnes said passengers aboard the non-stop services would be served a choice of Vietnamese meals in all cabins in addition to the traditional French cuisine and wines.

From November, Air France will also join two weekly code-share services from HCMC and five frequencies from Hanoi, and these non-stop flights will be operated by Vietnam Airlines under an agreement between the two carriers.

Vietnam Airlines’ non-stop services will depart from HCMC at 11:10 p.m. on Tuesdays and Saturdays, and arrive in Paris at 6:30 a.m. the next days. The flights from Noi Bai Airport in Hanoi will take off at 11:55 p.m. on Tuesdays, Wednesdays, Fridays, Saturdays and Sundays for Charles de Gaulle Airport.

Beragnes said the flight and route changes underlined stronger cooperation between the two members of SkyTeam. The flagship carrier of Vietnam became a full member of the world’s second largest airline alliance on June 10.

The changes mean Air France will stop flying between Paris and Vietnam via Bangkok as it does currently. However, passengers can board Air France’s flights to Paris and then to other destinations in Europe and the world.

Air France now sells return fares from US$777 excluding taxes and fees until October 24 for the non-stop services from either HCMC or Hanoi to Europe between November 1 and March 31, 2011. Beragnes said customers would be able to purchase these promotional fares on www.airfrance.com.vn, booking offices and agents.

Monday, December 27, 2010

Air France unveils non-stop services to HCMC

Thierry Beragnes of Air France introduces the non-stop services between Paris and Vietnam at the press conference in HCMC on Wednesday - Photo: Mong Binh

The services from Charles de Gaulle Airport will be at 11:25 p.m. on Tuesdays, Thursdays and Saturdays, and land on Tan Son Nhat at 4:55 p.m. the next days.

Beragnes said passengers aboard the non-stop services would be served a choice of Vietnamese meals in all cabins in addition to the traditional French cuisine and wines.

Monday, December 13, 2010

Competition heats up in domestic airline market

Competition heats up in domestic airline market Competition in the local airline market is set to get tougher as large carriers try to boost sales with lower airfares and new players get ready to launch their service, experts said.

National carrier Vietnam Airlines has launched a new program, offering discounts of up to 50 percent on domestic flights. Its airfares now cost between VND400,000 and VND860,000.

Low-cost carrier Jetstar Pacific have been selling 1,000 tickets at only VND100,000 from September 9 to October 10.

Vo Huy Cuong, head of the Civil Aviation Administration’s Air Transport Department, said airlies typically offer cheaper fares during the low season from September to October.

When both Vietnam Airlines and Jetstar Pacific cut their prices, the competition would get really tough on new players like Air Mekong and Blue Sky Air, said Cuong.

Air Mekong, a private air carrier that has partnered with Skywest Inc., will start its flights on October 9. The company will use four CRJ-900 aircraft produced by Montreal-based Bombardier Inc. for 20-30 flights per day.

An Air Mekong representative said the carrier is prepared for the competition. Each airline has its own strategies and Air Mekong will focus on business class services, the representative said.

Meanwhile, Blue Sky Air, another new carrier, said it would also have its own niche market, using helicopters for its on-demand service.

An expert who wished to be unnamed said as private carriers are not supported financially by the government, they have to take measures to prevent losses in the long term otherwise they would be caught in another Indochina Airlines’ situation.

Indochina Airlines, the first private airline to run flights in Vietnam, early this year suspended its services due to debt problems.

The expert also said unlike Vietnam Airlines, smaller carriers are now allowed to operate international routes and thus they will not have more revenues to offset losses caused by domestic services.

Cuong said that the market has great potential for growth, but all the players would need to be competitive enough to stay in the game.