Vietnam airline market expected to grow 15 pct in 2010

TN News

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The Vietnam Civil Aviation Administration says the local airline market will recover this year with a 15 percent growth as many carriers plan to increase flights from and to Vietnam.

Vo Huy Cuong, head of the administration's Aviation Transport Department, said the market posted a growth of just 8.4 percent growth last year due to a sharp decline in foreign arrivals.

But the situation has improved this year with travel demand surging in the first two months, he said.

Cuong said the Aviation Administration has raised the growth forecast for 2010 from the previous estimate of only 8 percent as market prospects have become brighter than expected.

Many international airlines have announced plans to add more flights to Vietnam this summer. Jetstar AirAsia, for instance, said it would nearly double flights between Singapore and Ho Chi Minh City during the period from May to July.

National carrier Vietnam Airlines is targeting an 18 percent increase in the total passenger numbers this year and revenues of VND32 trillion, up 30 percent from 2009.

Vietnam Airlines also plans to receive 16 new planes this year, expanding its fleet to around 60 aircraft. The carrier is expanding its business in Japan and Myanmar.

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