Vietnam re-proposes reopening of international routes as domestic airlines sell Tet tickets in advance

WebChat Post : Sino-Viet+ via Minhangshi

Ref :  http://www.minhangshi.com/m/h5/detail/8623277

Extract translation, editing : Gan Yung Chyan, KUCINTA SETIA

The Vietnam Aviation Association (Hiệp hội doanh nghiệp Hàng không Việt Nam) recently recommended that the government reopen international routes to countries that have stabilized the epidemic.

Screenshot of Vietnamese media report

Last weekend, the Vietnam Aviation Industry Association also recommended that the Prime Minister of Vietnam promulgate a standardized process for epidemic prevention and control measures in the air transport industry. The Vietnamese government will allow passengers who meet the epidemic prevention requirements to enter Vietnam (Chính phủ cho phép khách du lịch nhập cảnh nếu họ đáp ứng được những yêu cầủu phòng)

In addition, the association also put forward some other recommendations: provide airlines with 3-4 years of preferential interest rates, about 25 trillion -27 trillion VND credit loans; extend the period of air service fee reduction and exemption to 2021; reduce environmental taxes and fees for flight fuel (thuế bảo vệ môi trường với nhiên liệu bay) by 70%; speed up the repair of the flight runways (đường băng) and taxiways (đng lưn) at Noi Bai Airport and Tan Son Nhat Airport within 6 months.

Regarding the above recommendations, the Vietnam Aviation Administration, said that the agency has discussed relevant prevention and control measures with some countries with stable epidemics. Some countries also agreed to resume flights to Vietnam, and agreed that inbound passengers need to be tested and quarantined for new coronary pneumonia. Therefore, this matter depends on the reception and testing capabilities of various isolation units and medical and health departments in Vietnam.

The National Committee for the Guidance of Epidemic Prevention and Control in Vietnam will issue various relevant regulations to clarify the specific time for resuming international routes, isolation of tourists, and testing costs.

In mid-July 2020, the Vietnam Aviation Administration also suggested that some international routes should be restored based on the "tourism bubble (moving within the area or moving corridors)" ("di chuyển nội khối") model. Technical experts and college students, etc. After entering the country, the relevant personnel must be isolated at home or at their own expense for 14 days at the government designated location. The government will conduct technical monitoring of people who are isolated at home.

Vietnam Airlines predicts that its expected operating income for the whole year will be "halved", that is, 50 trillion VND and a loss of about 13 trillion VND. According to the financial report for the second quarter, VietJet Air’s operating income was only VND 1.97 trillion, which was 80% lower than the same period last year due to the epidemic, and its after-tax profit was negative VND 1.122 trillion (âm 1.122 tỷ đồng lợi nhuận sau thuế) .

The International Civil Aviation Organization also predicted that by 2024, the world aviation industry may return to the level of 2019, and Vietnamese airlines will lose more than US$4 billion this year.

Affected by pandemic, Vietnam's airlines are short of funds and have a difficult time. They are selling tickets for the Tet Festival next year in advance.

Since the announcement of the launch of tickets for Tet in 2021, Vietnam Airlines has launched 2 million tickets for domestic flights in Vietnam, and Vietjet Air and Bamboo Airways have also sold 1.2-1.5 million tickets for the Spring Festival .

Different from previous years, Vietnam’s airlines this year are affected by the epidemic and are facing a shortage of funds, and the aviation industry has suffered severe losses. Therefore, they sold a large number of Spring Festival tickets in advance.

An expert in the aviation industry said that early ticket sales are the best way to help major airlines speed up capital turnover. For the launch of tickets for Tet in 2021, Vietnam Airlines Group, including members Vietnam Airlines, Pacific Airlines and Vietnam Airlines, has officially provided more than 2 million tickets for domestic flights in Vietnam. Ticket sales start from 18 August 2020.

Major airlines have given priority to increasing flights on routes with high passenger travel demand, such as Hanoi-Ho Chi Minh City / Vinh City / Can Tho / Phu Quoc, Ho Chi Minh City-Da Nang / Haiphong / Thanh Hoa / Vinh City / Dong Hoi / Hue /Pleiku/Bang Ma Thuot/Nha Trang/Phu Quoc and other routes.

Under the influence of the current epidemic, the Vietnam Airlines Group has adopted a series of epidemic prevention and control measures, strictly in accordance with epidemic prevention standards to ensure the sanitary conditions on the ground and in the air, and fully disinfect the aircraft, various basic service equipment, and personnel protection equipment. Passengers must register and declare Health information, get their body temperatures measured before entering the aircraft, and requiring crew members and passengers to wear masks throughout the journey, simplify the service standards of the flight process and minimize direct contact.

In this Tet ticket sales, VietJet Air provides 1.5 million air tickets to 50 domestic routes in Vietnam, and the earlier passengers buy tickets, the more favourable the prices will be.

Bamboo Airways has sold 1.2-1.5 million Vietnamese Lunar New Year tickets and also launched welfare ticket purchase activities on various routes. For example, the ticket price during Tet is between 69,000 and 99,000 VND.

Judging from the online ticket sales of various airlines, the round-trip fare of Vietnam Airlines from Hanoi to Ho Chi Minh City includes taxes and fees, and the price is about 6 million VND, while the round-trip fare of Bamboo Airways on this route is priced at 7 million VND. VietJet Air sells the ticket at nearly 6 million VND.

The situation of the epidemic is complicated, and Vietnamese airlines have stated that they will adopt fare measures that are in line with the market situation, and will take special measures to deal with flights cancelled by the pandemic.