The demand for passenger and cargo transportation of aviation in 2016 flourished all over the world. Passenger transport revenue per kilometer (RPKs) increased by 7.1% in 2016.
Despite a slight decline from 7.4% due to a fall in oil prices in 2015. This shows that the aviation industry is operating well and goes far beyond the 10-year average growth rate of 5.5%. The increasing demand resulted from lower ticket prices in 2016.
While the middle class in Europe and North America remained unchanged, this class in the Asia-Pacific region rose sharply. This was the reason for the rapid development of this region while leading the growth rate of passenger and cargo transport by air with 33.6% over the same period. The airline’s development center continued to shift towards East Asia, taking second place in 2016. Again, China’s domestic passenger market had the largest growth in passenger numbers, with more than 37 million in 2016 over the previous year. This increase was more than the two fastest growing markets followed which are the US domestic and Indian domestic combined.
The total Vietnam aviation industry (including international traffic) has increased by 2.6 times in terms of scale, from 23.7 million passengers in 2011 to 61.2 million in 2017. Vietnam aviation transport market involved in the operation of 63 foreign airlines from 25 countries/territories operating international flights to Vietnam. Foreign airlines and 3 Vietnam Airlines enterprises-Vietnam Airlines, Jetstar Pacific Airlines and VietJet are exploiting 105 international routes.
According to IATA, Vietnam is one of the 5 airway markets with the largest increase in passenger volume (after China, US, India, Indonesia), with the average growth rate in the period 2011-2015e was highest in the top 10 leading countries with 32.65%. Accordingly, in the first three months of 2018, the total number of flights operated by four airlines branches was xx,xxx and the total number of flights departing on time was xx,xxx. The remarkable thing was that Vietjet increased strongly the number of flights (27%) compared to the same period, but the rate of punctuality and cancellation of flights were increased sharply over the same period.
Companies Covered In this report:
- Airports Corporation of Vietnam – JSC
- VietJet Aviation Joint Stock Company
- Jetstar Pacific Airlines Aviation Joint Stock Company
- Vietnam Air Services Company (VASCO)
For more information on the research report, refer to Vietnam aviation industry