Vietnam aviation sector bucks downturn
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All six Vietnamese companies in the aviation sector had reported profits this year, said Lai Xuan Thanh, head of the Civil Aviation Authority of Vietnam (CAAV).
Vietnam Airlines Corporation, Vietnam Air Navigation Services Corporation and Airports Corporation of Vietnam have never seen losses and continued to grow this year.
Vietnam’s budget private carrier, VietJetAir, also reported 120 billion dong (Bt177.6 million) pre-tax profits for the first seven months of the year while Jetstar Pacific and Vietnam Air Service Company (VASCO) announced profits for the first time.
VietJetAir’s executive director Luu Duc Khanh said that making a profit after only two years of operation had exceeded the company’s expectations. Its initial modest goal was to break even within three years.
A representative from VASCO said that the company had a balance of 23 billion dong in the eight-month period and had effectively exploited the domestic routes.
The information surprised experts, given that turbulence in the airline industry has seen several companies go out of business in the past three years.
In February, Air Mekong temporarily ceased operation to restructure; Jetstar also experienced financial difficulties.
