Currently, flights to and from Europe must change routes to avoid Russia via China, Kazakhstan or via North Africa. Flight time is expected to increase from 60 minutes – 120 minutes/flight, resulting in additional costs of about 10,600 – 21,200 USD/flight.
The flight to Europe and the US is longer, the cost incurred is large
The Civil Aviation Authority of Vietnam has just sent a report to the Ministry of Transport to assess the impact of Russia-Ukraine tensions on the aviation sector.
Accordingly, the Russia-Ukraine tension led to the European Union (EU), the US, UK and Canada closing the sky to Russia and Russia also taking similar actions with these countries.
This has a direct impact on passengers, airlines and increases flight costs. Even airlines that do not participate in the embargo are also affected because aircraft have to change their operating routes, arise problems with insurance, payment, risk provisions, etc.
Deputy Director of the Civil Aviation Administration of Vietnam, Mr. Dinh Viet Son, shared: “The ban on airlines from exploiting transit routes through Russia has affected the operations of two major airlines.”
The two airlines most affected are Vietnam Airlines and Bamboo Airways. While Vietnam Airlines is operating routes to and from Russia, Europe and the US, Bamboo Airways is operating routes to Europe and the US, using transit air traffic routes through Russia.
Vietnam Airlines is operating 6 flights/week between Vietnam and Europe, so the cost is about 70,000 – 130,000 USD/week. Bamboo Airways operates 3 flights per week between Vietnam and Europe, with costs ranging from 35,000 to 65,000 USD per week.
Flights to/from the US must adjust their flight routes to avoid Russian airspace, extending the flight time from 20 to 30 minutes per flight, depending on each stage of operation. Vietnam Airlines is operating 4 flights/week to the US, it is expected that the cost will be about 20,000 USD-40,000 USD/week depending on the period.
In addition, the airline cannot use the alternate airport within Russia. Supply shortages from Russia and Ukraine also drive up fuel prices, adding to the cost burden for airlines.
In addition, the air embargo has resulted in airlines having to choose longer routes, increased costs, increased pressure on the global logistics transport system and commodity prices.
There is no plan to reopen the Hanoi-Moscow route
Notably, according to the Civil Aviation Authority of Vietnam, Vietnam Airlines operates wide-body aircraft A350/B787 to Russia. However, nearly 80% of the airline’s wide-body fleet is chartered.
All aircraft charter contracts of Vietnam have general provisions on the principle that the lessee cannot operate to embargoed countries/regions, subject to US and EU sanctions if this exploitation leads to the breach of the contract by the parties to the aforementioned embargo or sanctions.
Thus, the ability of Vietnam Airlines to arrange exploitable aircraft to Russia is very difficult if the aircraft owners of Vietnam Airlines request not to operate in Russia during the war.
@ Cafef
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Source: Vietnam Insider