Page 21 - VIA EXPO 2022 | Show Preview

SHOW PREVIEW

POISED FOR GROWTH

VIETNAM’S MRO SECTOR IS POISED FOR GROWTH

ATUL CHANDRA

Vietnam’s Maintenance, Repair, (AESC). However, these MRO firms has also been performing heavy
and Overhaul (MRO) market has a will need to rapidly add capacity checks for A320 aircraft belong-
growth potential that is likely to out- as they currently account for only ing to ThaiVietjet (TVJ). TVJ is a
pace other countries in the region 25 per cent of Vietnam’s MRO LCC in Thailand and a member of
over the next 10 years. Vietnam’s needs, with the remaining being Vietjet Air. VAECO continues to pro-
MRO market was approximately outsourced to firms abroad. In vide heavy maintenance services
US$542 million in size in 2018, which July, the Vietnamese Transport to Pacific Airlines for eight A320s,
was less than 10 per cent of the size Ministry approved a US$118 million including C and Y Checks, which
of the Southeast Asia MRO market investment at the new Long Thanh were planned to take place from
which amounted to US$5.8 billion. International Airport to develop March to November 2021. VAECO
As of 2019, Vietnamese commercial four MRO facilities. Vietnam Airlines has also been supporting interna-
airlines operated approximately Group announced a US$430 mil- tional airlines operating in Vietnam,
190 aircraft but this is slated to lion investment in February at the such as Korean Air since 2009.
grow to about 400 aircraft by 2035 same airport. The Long Thanh
at an average fleet growth rate at International Airport is expected Vietnam Airlines Engineering
13.3 per cent per year. to commence operations in 2025. Company (VAECO), Vietstar Aero
This will provide a major boost to Engineering (VSAE), Southern
As a result, by the latter half of this MRO activities in Vietnam. Airports Aircraft Maintenance
decade, it is expected that there VAECO entered into a heavy main- Services (SAAM) and Aerospace
will be strong growth in MRO ser- tenance service contract with Engineering Services (AESC) are
vices in Vietnam. There are four Vietjet Air in March 2021. The con- the four main MRO service
main MRO service providers in tract included C checks on five providers in Vietnam.
the country, including Vietnam A320/A321s to be performed at
Airlines Engineering Company its Hanoi facility in 2021 as part Technology Pioneer
(VAECO), Vietstar Aero Engineering of the long-term agreement. The
(VSAE), Southern Airports Aircraft deal was touted as a major success Vietjet emerged as the first Asia
Maintenance Services (SAAM) and for VAECO in the highly competi- Pacific customer for Lufthansa
Aerospace Engineering Services tive Asian MRO market. VAECO Technik AVIATAR’s Technical

VIETNAM AVIATION EXPO 2022 2022 SEPTEMBER | 21