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Aircraft Shortage Poses Challenges for Vietnam’s Aviation Industry

Catherine by Catherine
02/04/2024
in aircraft news
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Vietnam’s aviation sector faces a pressing challenge as it grapples with a severe shortage of aircraft, resulting in limited availability and soaring airfare prices, particularly as the peak summer season approaches.

According to Đinh Việt Thắng, Director of the Civil Aviation Authority of Vietnam, the shortage stems from a global engine recall initiated by Pratt & Whitney (PW) for their PW1100 engines installed on Airbus A321Neo aircraft. This recall, affecting approximately 600-700 engines worldwide, including those utilized by Vietnamese carriers, has triggered a domino effect in the industry.

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As of March 31, Vietnam’s aircraft fleet comprises 205 units, with 26 undergoing engine removal for inspection and repairs, adhering to PW’s directives. The repair process is anticipated to span around 18 months, with a complete resolution expected by late 2026 or early 2027. This, coupled with airlines restructuring their debts, has led to an upsurge in global aircraft leasing costs and a dearth of available aircraft for rental.

Thắng estimates that the aircraft scarcity will directly impact transportation capacity, fleet size, and supply capacity on both domestic and international routes throughout 2024 and 2025. With approximately 24 million seats projected to be required during the imminent peak summer season, the situation demands urgent attention.

In response, Vietnam Airlines is expediting the delivery schedule of their 30th wide-body aircraft and engaging in negotiations with leasing firms to secure four “wet-lease” aircraft for short-term operations. Additionally, the airline has opted to operate without spare aircraft or with minimal downtime to bolster operational capacity and accommodate more passengers.

The Civil Aviation Authority of Vietnam has urged airlines to devise contingency plans and streamline procedures to reduce aircraft turnaround time, increase nighttime flights, and integrate wide-body aircraft into their operations. The Ministry of Transport has similarly called upon airlines to formulate operational strategies to meet transportation demands during the upcoming holiday period and peak summer season.

These concerted efforts aim to mitigate the impact on passengers and ensure the continuity of transportation services in Vietnam amidst the ongoing aircraft shortage.

Tags: portpricering
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I am Catherine Haggui, a distinguished Luxury Goods Specialist with over a decade of experience. As Director of Luxury Retail Strategies at a leading firm, I've cultivated a reputation for curating exclusive collections, elevating brand positioning, and exceeding sales targets. Renowned for my discerning taste and global market insights, I blend artistry and commerce to redefine luxury experiences. My work involves strategic partnerships, trend forecasting, and ensuring clients receive unparalleled access to the epitome of opulence.

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