10-7-2023 (HANOI) The Chairman of the Board of Directors of Vietnam Airlines, Dang Ngoc Hoa, has announced that the company is facing difficulties in securing flight slots (takeoff and landing times) in the United Kingdom, India, and China. During a meeting with the Ministry of Transport on July 10th, Hoa stated that after a hiatus caused by the pandemic, the airline has lost many flight slots in London, while in India, domestic airlines have been given priority, resulting in only 28 international flight slots being allocated at four major airports, with none available for foreign airlines. Negotiations with Chinese authorities for flight slots have also been unsuccessful.
Vietnam Airlines has largely restored its domestic and international flight network, operating 54 international routes to 28 destinations in 18 countries, and 45 domestic routes to 21 destinations. However, Hoa noted that the international air travel market has only recovered 60% of its pre-pandemic passenger volume, with Chinese travellers accounting for just 9% of pre-pandemic levels. The limited number of international passengers has made it difficult for the airline industry, which is also experiencing high fuel prices, in some cases double the price of 2019. Fuel costs currently make up 50% of the price of air tickets.
Hoa has requested the Ministry of Transport to support airlines in negotiating flight slots abroad and regulating the number of flights to avoid overcapacity, which would result in wastage of resources and overload of airports. He also urged the implementation of regulations on ceiling prices for domestic airfares. “Currently, the cost of flights is very high, but the airfares are very low, with the lowest summer airfares in nearly six years, which is causing difficulties for airlines,” said Vietnam Airlines Chairman.
Minister of Transport Nguyen Van Thang has instructed the Civil Aviation Authority and the International Relations Department to support Vietnam Airlines in obtaining flight slots abroad, with a “give and take” approach to the allocation of international flight routes. If necessary, the Ministry of Transport will issue documents or send a negotiating delegation to directly discuss with other countries to secure international flight slots.
In the first six months of 2023, the domestic aviation market has shown relatively good signs of recovery, exceeding 8% of pre-pandemic levels in 2019. However, the international aviation market has only recovered about 60% of its pre-pandemic level.
