Vo Huy Cuong, deputy director of the Vietnam Civil Aviation Administration shared his thoughts about the ASEAN Open Skies policy with Dan Tri.
Vo Huy Cuong
The ASEAN Open Skies policy, or the ASEAN Single Aviation Market (ASAM), which was finalised last December, allows airlines from ASEAN countries to fly freely throughout the region. It is expected to boost regional growth and development as it should encourage higher traffic flow and service quality with lower ticket prices.
What does the ASAM mean to Vietnam?
Firstly, it's a statement for our contribution to build a peaceful and stable ASEAN.
For our aviation market, ASAM provides opportunities for better connections, a boost to tourism and regional trade. But it also poses challenges. Our infrastructure and services must be improved to meet demand and local firms will face tough competition.
Is it safe to open the skies now as the regional and global aviation security are faced with more complicated matters?
All countries have agreed to the policy while also agreeing to not loosen a grip on security. Vietnam and other ASEAN countries have continuously upgraded their legal frameworks, equipment and training their staff for better security. Recent plane accidents are not a consequence of ASAM.
What difficulties could local firms face if foreign firms invest in Vietnam market?
We are confident that ASAM will be a level playing field. Since 1996, when Vietnam started to contribute to regional air transport liberalisation, Vietnam Airlines then Jetstar Pacific and Vietjet Air have known that they have to prepare for the challenges. But they will have freedom in terms of business planning as there will be no regulatory limits on the frequency or capacity of flights between international airports across the 10 ASEAN member countries.
Are you worried about severe overloading as our infrastructure is still weak and cancelled and delayed flights are still a problem?
Overcrowding mostly happens at major airports such as Danang, Cam Ranh and Tan Son Nhat. Better co-operation between state agencies and airliners have helped to improve the situation lately.
New terminal and runway will be put into use at Cat Bi Airport this year. Danang Airport will also have new international terminal in 2017 with capacity of four million passengers per year. Cam Ranh Airport will have a new runway, its terminals will be expanded and it will have new international terminal in 2018.
We can’t do anything to reduce the overloading at Tan Son Nhat Airport apart from building a new airport, Long Thanh Airport.
Will the ticket prices reduced?
Competition will force airliners to offer tickets at reasonable prices and improve their services. However, the airliners may focus on profitable routes so governments of ASEAN countries should have policies to encourage airliners to establish flight routes to remote and underdeveloped areas.
Will the Open Skies policy help establish direct routes to the US and reduce ticket prices in the future?
Our local firms still don't have ability to establish direct routes to the US. But with the Open Skies policy, passengers have more choice in terms of their transit flights to North America at that should mean better prices.
