Vietnamese airlines seek solutions to cope with aircraft shortages.

Vietnamese aviation is facing a major challenge: a shortage of aircraft due to manufacturers recalling engines and airlines restructuring.

According to experts, the shortage of aircraft not only affects the service capacity of airlines but also reduces the competitiveness of the aviation industry. To address this situation, Deputy Minister of Transport Le Anh Tuan has instructed the Civil Aviation Authority of Vietnam to study options to support airlines in increasing their aircraft fleet to meet market demand and improve service quality.

Aviation faces many challenges.

According to Mr. Do Hong Cam, Deputy Director of the Vietnam Civil Aviation Authority, the market has been experiencing a boom in recent times. air Vietnam faces numerous challenges. In addition to dealing with the negative impacts of Covid-19, the aviation industry is also grappling with the difficulties of a shrinking fleet. Currently, the number of aircraft owned by Vietnamese airlines has decreased by approximately 40-45 compared to 2023 due to manufacturer engine recalls and restructuring by Bamboo Airways and Pacific Airlines.

The number of aircraft has decreased by approximately 40-45 compared to 2023. (Illustrative image)

In the context of shortages plane Globally, domestic airlines are also facing many obstacles in sourcing and leasing aircraft due to high leasing costs. In addition, fuel prices are high, and exchange rate fluctuations are contributing to increased operating costs. Furthermore, due to a shortage of aircraft, airlines are forced to reduce supply on domestic routes. This has led to a decline in the domestic market compared to the same period in 2019.

These factors have affected supply and are one of the causes of fluctuations in airfare on domestic routes during certain peak periods (holidays, Tet). The reduction in supply not only affects the recovery of the aviation industry but also creates difficulties for passengers.

Struggling to find a solution

According to Deputy Director of the Vietnam Civil Aviation Authority, Do Hong Cam, in the context of aircraft shortages, the agency has allocated resources to ensure operational plans. In particular, the Civil Aviation Authority has optimized aircraft operating times during the day and increased night flights to help airlines maintain and stabilize flight rates and frequencies as much as possible. In addition, the agency has also strengthened monitoring and inspection of ticket sales, price declarations and listings, and supervision of ticket supply and booking, to ensure transparency and stability in the aviation market.

According to representatives of Vietnam Airlines, the airline has implemented a series of solutions to ensure its supply capacity. Despite facing difficulties, although the fleet decreased by an average of over 10% compared to 2023, the total number of flights reached nearly 70,000, an increase of 8.6% compared to the same period. Operating flight hours reached 165,800 hours, an increase of 11.3% compared to the same period. The number of passengers transported across the network reached 11.1 million, an increase of nearly 10% compared to the same period, and the on-time performance (OTP) reached a high level of 86.4%.

For Vietjet Airlines, the recall of the PW1100 engine by engine manufacturer Pratt & Whitney (PW) All 50 engines installed on the airline's 25 A321Neo aircraft will have to be removed for repair. This directly impacts transportation forces, fleet size, and supply capacity on domestic and international routes.

As of July 2024, the airline has a total of 10 aircraft that have been decommissioned, with one more scheduled to be decommissioned from October. To address this situation, Vietjet plans to receive 10 aircraft in the last six months of 2024, including 8 A321Neo aircraft and 2 E190 aircraft.

In 2025, Vietjet plans to continue receiving A321Neo, A330-300, E190, and Boeing 737 Max aircraft. However, the aircraft delivery schedule is still affected by factors related to the production line, shortages of spare parts and materials, and labor, which could impact Vietjet's plan to receive new aircraft.

Many positive signs

Deputy Minister of Transport Le Anh Tuan assessed that the aviation industry has shown many positive signs despite facing difficulties such as aircraft shortages, restructuring, flight route rearrangement, high fuel prices, and foreign exchange rate fluctuations. This is thanks to the attention and guidance of the Government and state management agencies, which have implemented flexible and appropriate solutions. One of the factors driving the growth of international air transport operations is the preferential policies and programs on tourism and visas offered by Vietnam to international tourists.

In addition, the aviation regulatory authority is continuing to promote negotiations to amend, supplement, and sign aviation agreements with authorities in countries around the world.

In the first six months of the year, passenger traffic reached approximately 37.5 million, a 3.7% increase compared to the same period in 2023 and equal to 96% of the same period in 2019 – a time when aviation activity was experiencing strong growth. A highlight was international market operations, with passenger traffic reaching 20.2 million, a 38.6% increase compared to the same period in 2023 and equal to the same period in 2019.

Deputy Minister Le Anh Tuan requested the Civil Aviation Authority of Vietnam to proactively address difficulties as well as suggestions and proposals from airlines, and report to the Ministry of Transport.

With the shortage of aircraft due to the manufacturer's engine recall, the Deputy Minister requested airlines to clearly report on the options for which they need state support. At the same time, he requested relevant units to research and find solutions for the Ministry of Transport to compile and report to the Prime Minister.

In addition, regarding adjustments to support input costs, businesses should proactively seek solutions and propose policies and mechanisms for the Ministry of Transport to consider, report to the Prime Minister and the State Capital Management Committee at enterprises to develop appropriate solutions.

Regarding weight limit control at some airports, the Civil Aviation Authority of Vietnam and the Airports Corporation of Vietnam (ACV) are reviewing all runways, reporting on investment implementation, maintenance funding, and providing appropriate and timely recommendations to airlines.

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