Aviation is showing signs of recovery
After a period of almost freezing due to the impact of the epidemic, the aviation industry has begun to prosper when domestic and international passenger output shows signs of growth. According to the Civil Aviation Authority, the air transport market has been showing signs of recovery but has not met expectations. Accordingly, the total air transport market in 2023 is estimated to reach approximately 74 million passengers and 1.1 million tons of goods.
This output increases by 34.5% in passengers but decreases by 9.3% in goods compared to 2022. Compared to 2019 (before the Covid-19 epidemic), there is a decrease of 7.4% in passengers and 12% in goods. % of goods.
In the first 10 months of 2023, Vietnamese airlines carried out more than 241 thousand flights, of which, the number of flights taking off on time was 204 thousand, accounting for 85%.
Airline passengers are recovering. Photo: Gia Linh
Leaders of the Civil Aviation Authority said that the aviation industry continues to face many challenges and difficulties in 2023. Specifically, high fuel prices in the context of the air transport market not yet fully recovering have continued. creating many difficulties for airlines and aviation service providers, increasing delays in service payments between airlines and service providers under contracts between units. This affects the continuous operations of the aviation industry and affects passengers.
In fact, in recent times, airlines have made great efforts to adjust their business strategies, restructure, cut costs… Some airlines have even increased the sale of in-flight meals to increase revenue. However, the after-tax profits of cashew companies are modest numbers, of which the airlines are still negative numbers.
Explaining the reason, airlines said the main reason is because of escalating prices and “inflated” fuel costs, causing difficulties for airlines. Accordingly, in the price structure, fuel usually accounts for 25-28% of exploitation costs.
According to an airline, the average fuel price in 2023 compared to 2015 has increased by 58.6%. Accordingly, fuel prices increase from an average price of 67.37 USD/barrel in 2015 to 106.86 USD/barrel in 2023. Meanwhile, jet fuel prices only need to increase or decrease by 1 USD/barrel to be effective. This year’s fuel costs may increase/decrease by about 224 billion VND, respectively.
In addition, factors such as interest rates and exchange rates are also “obstacles” that make it difficult for airlines to recover. Because most air transportation costs are in foreign currency, ticket sales revenue in Vietnam is in Vietnam Dong.
Serving people’s travel needs well during the peak Tet holiday season
The Civil Aviation Authority of Vietnam has identified the immediate goals of units needing to improve their capacity to better serve the travel needs of people during the peak time of Tet. Accordingly, the Civil Aviation Authority of Vietnam requested Airports Corporation of Vietnam (ACV) to review and urge the construction unit to complete the repair and upgrade of construction items according to the approved plan. , ensuring completion and return of the site to exploitation before the peak period of Lunar New Year.
Proactively review licensed transport units (taxis, etc.) at airports, increase the number of vehicles transporting/picking up passengers at airports when operating night flights; It is necessary to proactively coordinate and request in writing the Department of Transport of localities to direct increased means of transporting/picking up passengers at airports when operating night flights.
Airlines are ready to plan to serve the Tet peak. Photo: Gia Linh
In addition, airlines are required to proactively provide information, communication, and guide passengers on procedures when flying (check-in procedures; aviation security screening, especially when passengers arrive in countries with special requirements for aviation security control) to disseminate and raise awareness of passengers when participating in air transport.
Manage flight schedules, strictly comply with confirmed slots according to daily flight plans, implement solutions to reduce flight delays and cancellations, and increase the rate of on-time flights. Coordinate closely and promptly with airports to update daily flight plans, avoid causing difficulties and waste in the service of service providers at airports, and manage flight operations. .
Notably, airlines strictly implement the provisions of law and transportation regulations related to the carrier’s obligations in case of delay or cancellation of flights; Receive and process feedback from passengers and people about the airline’s transportation activities quickly and promptly, especially during the Lunar New Year peak.
