Vietnam attracts foreign carriers as domestic airlines struggle or fade
2012 05 24
- Details
SAUDI Airlines Cargo has launched twice-weekly cargo flights to Vietnam to forge link cheaper manufacturing hubs of south east Asia to the Middle East and Germany, just as domestic airlines have failed to take a grip of their domestic market, reports VietnamNetBridge.
The Vietnamese government has since offered incentives to foreign carriers after domestic airlines exited the field including Indochina Airlines and Trai Tien Air Cargo, following licence revocations in the face of financial difficulties.
Air Mekong and Vietjet Air continue to struggle while Vietnam Airlines looks to restructuring and privatisation, along with its recent acquisition of 70 per cent stake in Qantas low-fare carrier Jetstar Pacific.
Japan's All Nippon Airways (ANA) is reportedly considering cargo flights to Vietnam after a passenger launch of its transpacific joint venture with United Airlines cooperating with airfares and networks on the US to Vietnam air route.
With China becoming more expensive, production is increasingly moving to Vietnam and other developing countries causing an increase in new cargo and passenger air routes to the country.
According to latest figures from the International Air Transport Association (IATA) the market for cargo and passengers in Vietnam is forecast to become the third fastest growing by 2014, just behind China and Brazil. Cargo is predicted to increase by 850,000-930,000 tons within three years and as much as 1.4-1.6 million tons by 2019.
The launch of passenger flights from Filipino Cebu Pacific twice weekly route from Manila to Hanoi and from Finnair to Vietnam is an important sign of expansion into Southeast Asia country. Finnair boasts 11 destination points in Asia representing 65 per cent of the Finnish air carrier's overall turnover. Its One World status means it can hook up with other airlines including Vietnam Airlines, Jetstar and Cathay Pacific to create transit points to Finland and up to 60 European destinations.
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