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Vietnam aviation industry will not be able to recover until 2021
The aviation sector can only recover in 2021 according to an official from the Ministry of Transport.
Tran Bao Ngoc, head of the Transportation Department under the Ministry of Transport said that the aviation was the hardest-hit. Local airlines have nearly stopped all domestic and foreign flights. After social distancing rules are relaxed, they can also operate cargo and repatriation flights on international routes. The number of domestic flights has also been kept to a minimum.
Since April 1, the number of passengers only account for 1-2% of the pre-outbreak days and most planes are grounded.
Vietnam Airlines are among the worst-affected firms. Its revenue in the first quarter dropped by 26%. The revenue and profits of the Airports Corporation of Vietnam dropped by 24% and Vietnam Air Traffic Management Corporation saw a 60% drop of revenue compared to the same period last year.
“The situation is worse than predicted. In 2020, there will be about 43 million passengers, 46% lower than last year,” Ngoc said.
Dinh Viet Thang, head of the Civil Aviation Administration of Vietnam said, “It’s likely than only in mid-2021 that the domestic market will recover to the same that it was in 2019. For the international market, it will be able to recover at the end of 2021.”
From April 30 to May 1, the airlines served 150,000 passengers and operated flights at all domestic airports. Three of the most important routes are Hanoi-HCM City, Hanoi-Danang and HCM City-Danang. 70-80% of the seats on main flight routes were used. This numbers are 60-70% on other routes.
Since the Reunification Holiday until now, six airlines in Vietnam have served 230,000 passengers. Thang said the industry is recovering very quickly and the domestic reaction is positive in the new normal.
The Ministry of Transport has asked the Transportation Department and the Civil Aviation Administration of Vietnam to research to reopen some international routes and priority will be given to experts or businessmen with projects in Vietnam. Dtinews
Source: https://vietnamnet.vn/en/business/vietnam-aviation-industry-will-not-be-able-to-recover-until-2021-639635.html