Vietnam will soon be one of the world’s fastest-growing air travel destinations.
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At the same time as the world wakes up to the fact they can now fly into what was once one of the most tightly barricaded destinations on the planet, the Vietnamese economy is flourishing - creating a burgeoning middle class with enough disposable income to patronise the booming low cost carriers.
The International Air Transport Association (IATA) says the future of Vietnam’s aviation sector is bright.
“By 2014, Vietnam is projected to be the world’s third fastest growing market for international passengers and the second fastest for domestic passengers,” said Giovanni Bisignani, IATA’s director general and CEO.
“But it is a future that cannot be taken for granted. Vietnamese aviation must be built and supported by sound policies that take into account that this is a dynamic industry where change is the only constant,” he said.
IATA has identified three areas of focus for the Vietnamese aviation industry—global standard technology for air traffic management, more cost-efficient airports and air navigation services and greater efficiency.
Bisignani was in Vietnam last month, where he met with state carrier Vietnam Airlines, the Southern Airport Corporation and VATM. During his meetings he emphasised the priorities for the sector’s growth.
Global standard technology for Air Traffic Management: “Vietnam has a world class air navigation service provider in Vanscorp, which was awarded an IATA Eagle Award for most improved ANSP in 2009. While VATM has taken over from Vanscorp, there is still a lot of work to be done to prepare the region for the expected enormous traffic expansion,” said Bisignani.
Cost efficient infrastructure: “We appreciate the three-year discount scheme implemented in April last year to provide charges relief to airlines at Vietnam’s major airports. It is a clear signal that the government recognises the importance aviation plays, and will support the aviation growth in Vietnam. Additional efforts are also needed to reduce the cost burden on current users of Vietnam’s airports and airspace. As Vietnam’s airports expand to meet the growing demand for air travel, it is important to have cost efficient infrastructure following ICAO’s charging principles of consultation with users, transparency, cost recovery and non discrimination in order to maximise the full potential that aviation brings,” said Bisignani.
Improved efficiency with IATA’s Simplifying the Business program: Improving efficiency will be critical in maintaining Vietnam’s competitiveness, especially in freight, he said.
“At the end of 2010, airlines worldwide completed the implementation of the 2D bar coded boarding pass (BCBP). But airlines operating at Hanoi Noi Bai Airport are still unable to reap the benefits from the BCBP as the cost-efficient 2D bar code technology will only be available in the first half of this year. This is a rare exception in a world that is over 99 per cent BCBP-capable. “I urge the Northern Airport Corporation to make the implementation of BCBP a priority,” said Bisignani.