Industry News
The Vietnam Aviation Administration plans to reopen Dien Bien airport
28 October 2028
The expansion of Dien Bien Airport in Vietnam is progressing according to the Prime Minister’s Decision. The Airports Corporation of Vietnam (ACV) is actively involved as the project’s investor, aiming for completion by December 2, 2023. The Civil Aviation Authority of Vietnam has urged airlines to prepare flight routes and ticket sales to align with the reopening schedule.
The project includes extending the runway to 2,400 meters to accommodate modern aircraft like A320 and A321, expanding the passenger terminal’s capacity, and building facilities for A320, A321, and similar aircraft support.
Vietjet’s fleet expansion continues with the arrival of the 101st aircraft
27 October 2023
Vietjet celebrated a major milestone with the arrival of their 101st aircraft, a 240-seat A321neo ACF, at Tan Son Nhat International Airport in Ho Chi Minh City. This underscores their commitment to fleet expansion, with 384 aircraft on order globally.
In 2023, Vietjet introduced numerous new aircraft, advancing their mission to fulfill passengers’ flight dreams. Despite challenges, they’ve served over 178 million passengers, connecting nations and boosting Vietnam’s aviation sector’s growth in the Asia-Pacific region.
Vietravel Airlines to raise charter capital to $82mn
25 October 2023
The Vietravel Airlines’ board of directors to conduct a share issue to new and existing shareholders to raise the company’s charter capital to VND2 trillion dong (USD82 million) from VND1.3 trillion (USD53 million). The aim is to supplement the business capital of the company in its core and supporting businesses. Airlines currently operates three A321-200s, and fleets advanced module, with a limited flight network and is looking for investors to obtain more resources.
Vietravel Airlines started scheduled flight operations in early 2021. It harbours ambitions of increasing its fleet size to 25 by 2025 and 50 by 2030. The carrier also seeks eventually to increase its capital to VND8.25 trillion (USD335 million).
Vietnam Airlines partners with Amadeus to modernise technology
19 October 2023
Amadeus has signed an agreement with Vietnam Airlines for it to use its enhanced passenger service system (PSS) technology to further their reach. The contract, shared the company, builds on an existing distribution partnership between the two organizations and will see the airline overhaul its digital solutions.
The agreement aligns with the airlines’ long-term goals to improve operational efficiency and become a digital airline by 2025. The new agreement will support Vietnam Airlines to become a leading technology-driven retailer in Asia Pacific. Both the companies will work together to promote Vietnam as one of the world's preferred tourism destinations and business hubs of Southeast Asia.
Vietjet Launches More Airbus Routes To Asia and Australia
3 October 2023
Airline capacity in Southeast Asia is still significantly below pre-pandemic levels, with Vietnam being the only country with a capacity within single digits of 2019.Vietjet, Vietnam Airlines, and Bamboo Airways are driving growth in Vietnam by resuming and launching new routes to various destinations in Asia and Australia, providing affordable travel options.
Vietjet is expanding its routes further by launching low-fare international services from Vietnam to South Korea, Taiwan, and Hong Kong, opening up new travel options for passengers.
Spirit AeroSystems and VAECO sign agreement for MRO services in Vietnam
28 September 2023
Spirit AeroSystems, Inc. has signed an MRO agreement with Vietnam Airlines Engineering Limited Company (VAECO).VAECO operates six modern hangars and aims to become a top MRO provider in the Asia-Pacific region.
With this strategic collaboration, VAECO will achieve its long-term growth ambitions and Spirit Aftermarket will now have 11 wholly owned, joint-venture or authorized repair centers around the world.
VietJet Targets Third-Party MRO Facility By 2026
September 26, 2023
As part of plans to establish an in-house maintenance organization, Vietnamese low-cost carrier VietJet Air plans to launch an MRO facility by 2026 to service third-party operators.
Speaking at Aviation Week’s MRO Asia-Pacific conference on Tuesday (Sep. 26), Michael Hickey, group chief operating officer at VietJet, says the airline envisages the facility supporting both narrowbody and widebody aircraft to reflect the airline’s fleet, which is comprised currently of Airbus A320 and A330 variants.
Vietnam Sees Intl Air Passengers Surge In Jan.-Sept.
September 26, 2023
Vietnamese airports welcomed 23.7 million foreign passengers in the first nine months of this year, an extraordinary growth of 266.8 percent compared to the same period last year, according to the Civil Aviation Authority of Vietnam (CAAV).
VN seeks investors for maintenance center at Long Thanh Airport
20 September 2023
The Ministry of Transport (MOT) has decided to organize domestic open bidding to select investors to implement a project on building an airplane maintenance center No. 1 at Long Thanh International Airport. To date, two investors have submitted dossiers for registration, namely Vietjet and VAECO (Vietnam Airlines Engineering Company Ltd). Preliminary assessments show that both of them can meet requirements to implement the project.
The project on building Long Thanh International Airport to serve 100 million passengers and 5 million tons of cargo each year, and the project on expanding Tan Son Nhat Airport with capacity of 50 million passengers, are two important national projects.In late August, Prime Minister Pham Minh Chinh commanded the start of the construction of three bidding packages at Long Thanh project and Tan Son Nhat Airport, worth VND53 trillion.
14 September 2023
Vietnam Airlines has signed a two-year deal with AirFi, wherein the airline technology provider will equip 37 of the carrier’s Airbus A321 aircraft with wireless in-flight entertainment (IFE) and enable in-seat ordering for passengers.This system will also facilitate in-seat ordering of food, beverages, and duty-free items, replacing the traditional trolley service. The rollout has begun and is set to be completed by mid-October, with Vietnam Airlines overseeing the logistics at three airport bases: Hanoi, Saigon, and Da Nang International.
Furthermore, the deal complements Vietnam Airlines’ broader digitalisation strategy, which focuses on three factors: Digital Technology, Digital Data and Digital Culture. In a bid to become Vietnam’s first digital airline by 2025, it recently signed a Memorandum of Understanding with Visa to ensure that passengers benefit from a convenient, secure digital experience throughout their journey.
Boeing urges Korean, Japanese tier 1-2 suppliers to seek partners in Vietnam
14 September 2023
Boeing is encouraging its tier 1 and tier 2 suppliers in South Korea and Japan to partner with Vietnamese firms for tier 3 products, leveraging Vietnam's cost advantages and skilled engineers. Boeing plans to organize training programs for Vietnam's aviation industry and is actively seeking suppliers in the country, starting with level 3 and 4 suppliers before moving up.
Vietnamese companies are encouraged to prepare for the aviation sector's long-term development, similar to how Malaysia developed its aerospace industry over the years. Vietnam Airlines has signed a $10 billion deal with Boeing for 50 737 Max jets, part of increased American business interest in Vietnam following the upgrade of bilateral ties to a comprehensive strategic partnership.
Vietjet and Carlyle Group sign a MoU for aircraft funding worth $550 million
12 September 2023
Vietjet and Carlyle Group, a US-based financial entity, signed an aircraft finance agreement worth $550 million during US President Joe Biden's official visit to Vietnam, and will finance the order of 200 737 Max aircraft from Boeing. This is a significant order and one of the largest commercial contracts between Vietnam and the United States to date.
The airline has offered passengers reasonable fares and convenient travel options, thus contributing to the development of aviation and tourism while fostering investment between Vietnam and the international community.
Vietnam Airlines Will Purchase 50 Boeing 737 MAXs Worth $10 Billion
11 September 2023
A new aircraft order could be on the horizon soon as Vietnam Airlines is anticipated to close an initial agreement to purchase an estimated 50 Boeing 737 MAX 8s for a total value of about $10 billion. This purchase agreement will be solidified during US President Joe Biden's visit to Vietnam when the Memorandum of Understanding will be signed.
Boeing might throw in more significant discounts as any order from Vietnam Airlines will undoubtedly be seen as a breakthrough for the US aircraft manufacturer. At this time of writing, neither the airline nor Boeing have responded to a request for a comment. But the airline will hopefully figure its finances out, seeing as how the 50 new aircraft are very much needed for Vietnam Airlines to grow further in boosting capacity and expanding its route market further to re-emphasize its position in the Vietnamese aviation market.
Vietnamese MRO Prospects Brighten
7 September 2023
The expansion of the ST Engineering-Vietnam Airlines joint venture for component MRO, it plans to add new capabilities. The growth coming from a combination of established MRO companies and MRO units of existing airlines. VAECO has a significant share of the market today, and ST Engineering’s continued additions of further component capabilities should reinforce VAECO’s position.
The other big upcoming change is the construction of Long Thanh International Airport, about 25 mi. northeast of Ho Chi Minh City Tan Son Nhat Airport. To provide MRO services and $120 million worth of hangars at the planned mega-airport, the Vietnam Ministry of Transport has received indications of interest from five providers, including VAECO, SAAM, and the maintenance arms of Vietjet, Bamboo Airways and Vietstar Airlines.
ACV: The Groundbreaking of Three Bidding Packages over 53 trillion VND
31 August 2023
Airports Corporation of Vietnam (ACV) in collaboration with Ho Chi Minh City People's Committee and Dong Nai Provincial People's Committee solemnly held the Groundbreaking Ceremony of three bidding packages under the two biggest construction projects of its airports and construction drawings preparation for runway, taxiway, apron, and other facilities. The total investment for these packages is over 53 trillion VND.
Upon completion, Terminal T3 will be a domestic passenger terminal with a capacity of 20 million passengers per year, accommodating 7,000 passengers per peak hour, and operating all varieties of Code C and Code E aircraft. The project "Construction of passenger terminal T3 - Tan Son Nhat International Airport" is expected to be completed and put into trial operation at the beginning of the second quarter of 2025.