Vietnam Airlines loses market share as industry shifts toward lower costs

Thanh Nien News

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 A file photo of passengers leaving a Vietnam Airlines plane at Tan Son Nhat Airport, Ho Chi Minh City. Photo: Dinh Quan
Low-cost carriers are giving Vietnam Airlines a run for its money, challenging its long-held top position in a country where travel demand is growing at a very fast pace. 
Vietnam Airlines controlled 47.6 percent of the passenger air market in the first 10 months, down 8.6 percentage points compared to the same period last year, the air transport department under the Civil Aviation Authority of Vietnam (CAAV) reported on its website.
Budget carrier VietJet Air had a 35.7 percent share, up from less than 29 percent last year, it said.
Jetstar Pacific Airlines, another low-cost carrier run by Vietnam Airlines and Australian-owned Qantas, saw a moderate increase of 1.9 percentage points, to 14.9 percent.
Vietnam Airlines' subsidiary VASCO had a nearly unchanged share of around 2 percent.
In the international market, Vietnamese airlines' combined share was 48.2 percent, up 4.4 points, while foreign carriers claimed the rest.
Vietnamese airlines transported a total of 25.6 million passengers in the first 10 months this year, up 26.9 percent year-on-year, according to the report.

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