VIETNAM AVIATION INDUSTRY

The demand for passenger and cargo transportation of aviation in 2016 flourished all over the world. Passenger transport revenue per kilometer (RPKs) increased by 7.1% in 2016. Despite a slight decline from 7.4% due to a fall in oil prices in 2015. This shows that the aviation industry is operating well and goes far beyond the 10-year average growth rate of 5.5%. The increasing demand resulted from lower ticket prices in 2016.

While the middle class in Europe and North America remained unchanged, this class in the Asia-Pacific region rose sharply. This was the reason for the rapid development of this region while leading the growth rate of passenger and cargo transport by air with 33.6% over the same period. The airline’s development center continued to shift towards East Asia, taking second place in 2016. Again, China’s domestic passenger market had the largest growth in passenger numbers, with more than 37 million in 2016 over the previous year. This increase was more than the two fastest growing markets followed which are the US domestic and Indian domestic combined.

The total Vietnam aviation industry (including international traffic) has increased by 2.6 times in terms of scale, from 23.7 million passengers in 2011 to 61.2 million in 2017. Vietnam aviation transport market involved in the operation of 63 foreign airlines from 25 countries/territories operating international flights to Vietnam. Foreign airlines and 3 Vietnam Airlines enterprises – Vietnam Airlines, Jetstar Pacific Airlines and VietJet are exploiting 105 international routes.

According to IATA, Vietnam is one of the 5 airway markets with the largest increase in passenger volume (after China, US, India, Indonesia), with the average growth rate in the period 2011 – 2015e was highest in the top 10 leading countries with 32.65%. Accordingly, in the first three months of 2018, the total number of flights operated by four airlines branches was xx,xxx and the total number of flights departing on time was xx,xxx. The remarkable thing was that Vietjet increased strongly the number of flights (27%) compared to the same period, but the rate of punctuality and cancellation of flights were increased sharply over the same period. 

Abbreviations
Report summary
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
2. World aviation industry
2.1 Development history of the industry
2.2 Current situation of industry development
2.3 Top largest airlines in the world
3. Vietnam aviation industry
3.1 Development history of the industry
3.2 Value chain of aviation industry
3.3 Industry scale
3.4 Current situation of aviation industry in Vietnam
4. Industry development planning
5. Enterprise analysis
5.1 Enterprise introduction
5.2 Enterprise analysis
Airports Corporation of Vietnam – JSC
VietJet Aviation Joint Stock Company
Jetstar Pacific Airlines Aviation Joint Stock Company
Vietnam Air Services Company (VASCO)

List of figures
Figure 1: GDP growth by quarter, 2015 – Q1/2018
Figure 2: Transportation and warehousing’s contribution to GDP, 2013 – 3M/2018e
Figure 3: Disposable income and household expenditure, 2010 – 2017e
Figure 4: World crude oil prices, 2011 – 3/2018
Figure 5: Commodities import – export, 2015 – Q1/2018
Figure 6: Tourist arrivals to Vietnam, 2010-2017e
Figure 7: RPK, FTK growth rate, 2012 – 2016
Figure 8: Global air travel passengers, 2012 – 2016
Figure 9: Jet fuel prices at major currencies, 2015 – 11/2017
Figure 10: Passenger and cargo transport growth by region, 2016
Figure 11: Top flight routes with strong passenger growth (direct flight), 2016
Figure 12: Passenger load factor, 2012 – 2016
Figure 13: Travel expenses and commercial air cargo values, 2012-2016
Figure 14: Connected airports and actual transport freight, 2012-2016
Figure 15: Accident rate per 1 million flights by region, 2016
Figure 16: Value chain of aviation industry
Figure 17: Capital and fixed assets in the airline passenger transport, 2010-2016
Figure 18: Aviation revenue, 2010 – 2016
Figure 19: Passenger transport proportion, 2012 – 3M/2018
Figure 20: Cargo transport proportion, 2012 – 3M/2018
Figure 21: Number of aircraft in Vietnam, 2011 – 4/2018
Figure 22: Aircraft structure by airlines, 4/2018
Figure 23: Passenger traffic growth over the years, 2010 – 2017e
Figure 24: Domestic market share, 2011 – 2017
Figure 25: Number of flight operations, 2014 – 3M/2018
Figure 26: Share of flight operations by airlines, 3M/2018
Figure 27: Sales structure by airline group, 2010 – 2017f
Figure 28: Revenue structure by sales channel, 2010 – 2017f
Figure 29: On-time take off rate, 3M/2018
Figure 30: World’s top punctual airlines, 2016
Figure 31: Cause group of unpuntuality, 3M/2018
Figure 32: Cause group of cancellations, 3M/2018
Figure 33: Structure of unpunctual take off of each airline by cause, 3M/2018
Figure 34: Cancellation structure by cause of each airline, 3M/2018
Figure 35: Shareholder structure of Vietnam Airlines, 2016
Figure 36: Growth in passenger volume of VietJet, 2013 – 2019e
Figure 37: Net revenue of goods sold and services provided, 2015 – 2017
Figure 38: Revenue structure of Vietnam Airlines, 2017
Figure 39: Gross profit margin and cost of goods sold, 2015 – 2017
Figure 40: Expenses, 2015 – 2017
Figure 41: Asset structure, 2015 – 2017
Figure 42: Profit after tax, 2015 – 2017
Figure 43: Profit ratio, 2015 – 2017
List of tables
Table 1: Top 10 passenger transport airlines (RPK), 2016
Table 2: Top 10 cargo transport airlines (FTK), 2016
Table 3: World aircraft accidents, 2016
Table 4: Top 10 world’s largest airlines, 9/2017
Table 5: HVN fleet, 2017
Table 6: VietJet Air fleet, 2017
Table 7: Comparison between common aircrafts in Vietnam
Table 8: Competitiveness of major airlines in Vietnam
Table 9: Top air routes having the highest growth rate in number of passengers, 2011 – 2015e
Table 10: Average seat occupancy rate, 2010 – 2017
Table 11: Growth rate
Table 12: Transport volume of airlines in Vietnam