HANOI, 8 October 2019: Airlines should be cautious over expanding their fleets, according to the Civil Aviation Authority of Vietnam (CAAV).
Vietnamnet news channel said CAAV had advised local airlines that their fleets could “exceed passenger and cargo transportation needs”.
The observations were made as part of a report to the Ministry of Transport regarding Thien Minh Aviation JSC’s proposal to set up a new airline, called Kite Air.
The report warned that between 2014 and 2018, the local aviation market grew at a rate of 20.5% for passengers and 13.2% for cargo.
Some 70 million passenger arrivals and 1.2 million tons of cargo moved through the country’s airports last year, up 12.6% and 7.2%, respectively from one year earlier. Also, local airlines had an average seat occupancy of more than 84%.
CAAV said local airlines would carry more than 60 million passengers by 2020 and nearly 96 million five years later.
Airlines will fly around 255 aircraft by 2020 and 384 by 2025.
(Source: Vietnamnet)
