Vietnam’s airlines have just 160 aircraft left in operation, 70 less than they had in 2019 pre-pandemic, according to Quality and Life Magazine. This is putting upward pressure on ticket prices which have come under increasing scrutiny this year. That said, they are regulated by the government which has investigated and reportedly failed to find evidence of price gouging.
This fall in aircraft numbers is partly due to problems with Pratt & Whitney made engines that have impacted airlines around the world and seen a number of aircraft grounded while waiting for repairs. It’s also because two airlines, Pacific Airlines and Bamboo Airways, under increased financial challenges have had to downsize their fleets considerably. Furthermore, there have been some aircraft financing issues with VietJet sued in the UK after failing to hand back aircraft tied to a cancelled lease.
With flight demand outstripping supply and the reputations of Vietnam’s airlines among lessors low, there are a myriad of ways Vietnamese airlines could benefit from an injection of foreign capital and expertise. Foreign firms, however, should make sure they have a full grasp on how the industry is tracking before embarking on any major decisions.