Leaders of Vietnam Airlines provided an outlook for the aviation industry.

DNHN - The International Air Transport Association (IATA) believes that the international air transport market has stabilized, but at a slower rate than anticipated.

The Deputy General Director of Vietnam Airlines, Trinh Ngoc Thanh, discussed the future of the aviation market. According to Mr. Thanh, the International Air Transport Association (IATA) believes that the international air transport market has begun to stabilize, but the rate of recovery is slower than anticipated, reaching only 88% compared to last year. with pre-COVID-19 levels of activity in 2019. By 2024, it should be possible to achieve the same level of activity as before the epidemic.

However, Mr. Thanh also emphasized that there are still differing assessments of the aviation industry's recovery progress. While the Civil Aviation Administration of Vietnam (CAAV) and the Ministry of Transport (Transportation) evaluate based on the number of flights, airlines evaluate based on the number of passengers.

According to the number of flights, the aviation industry has recovered substantially, particularly on the routes connecting Noi Bai and Tan Son Nhat. However, the situation is not the same in terms of the number of passengers. The reality is that airlines are attempting to reserve seats for the summer of 2024, so they must attempt to operate flights despite the low occupancy rate.

Mr. Thanh continued to analyze more precisely that by July, the total number of Chinese visitors to Vietnam had only reached 10%, the total number of Japanese visitors had reached 54%, and the total number of Korean visitors had reached 80%, but the number of tourists remained low. The number of Indian visitors has nearly doubled, while the number of visitors from Australia and the United States has increased by more than 10%.

On the domestic market, the number of visitors has surpassed the pre-pandemic activity level by roughly 10 percent, but it is still lower than it was in 2022. Even though the number of visitors increased by 14% during the peak summer season, the average ticket price decreased by 14%. When airlines are unable to operate international flights due to an imbalance between supply and demand, they focus on the domestic market.

Although the aviation industry has experienced a fundamental recovery in both domestic and international markets, the average seat occupancy on international routes is still only 67-68%. This number is 10% less than the pre-COVID-19 level of activity in 2019, according to Thanh.

The Deputy Minister of Transport, Le Anh Tuan, expressed his understanding of the challenges facing the aviation industry. According to him, the dialogue conference with businesses has not been sufficiently organized for many objective reasons, including the impact of the epidemic. The deputy minister stated that he would prioritize expanding opportunities for exchange between state management and businesses. He is committed to listening to businesses and considering any adjustments to operating instructions that may be necessary to create the most favorable conditions for the movement of people and businesses.

From there, the Deputy Minister proposed that the Vietnam Civil Aviation Authority examine and evaluate all business recommendations and proposals, then summarise and report to the Ministry of Transport. He affirmed that he will assimilate and implement the necessary conditions to maximize support for businesses and accompanying airlines in meeting the travel needs of individuals.

PV (t/h)