Regional jets can help boost the tourism industry in Vietnam by linking primary and secondary cities in the country, and also remove the need for extensive airport upgrades, that are necessary to accommodate bigger aircraft, Victor Vieira Dos Santos, Sales Director, Asia Pacific at Embraer Commercial Aviation said.
“Air connectivity is key to unlocking economic growth potential, in part because it enables the country to attract business investment and human capital, and spurs tourism. Vietnam’s downside of high dependence on large narrow-body aircraft might soon become apparent when it proves to be inefficient in improving connectivity at regional airports,” he said.
Given Vietnam’s reliance on large capacity aircraft, the aircraft capacity and market demand unbalance limits airlines’ ability to efficiently serve regional markets. As a knock-on effect, air services are heavily concentrated on major trunk routes.
How do we improve regional connectivity?
“A multi-fleet strategy provides the desired flexibility to adjust aircraft capacity to regional market demand. In this context, infrastructure investment strategies can provide the resources needed to cope with growth prospects, as the industry shifts from survival to expansion mode.
“While competitiveness will be increasingly higher on trunk routes, there is still plenty of room for profitable operations on regional routes, connecting small communities to Ho Chi Minh City’s Tan Son Nhat International Airport, Hanoi’s Noi Bai International Airport as well as those in the cities of Da Nang and Nha Trang,” he noted.
How can the industry create and sustain value through investment strategies?
Regional jets can provide both affordable and profitable operations simultaneously. Profits and returns should evolve as the primary focus and key deciding factor over the next few years. Rather than costly infrastructure projects, regional jets are the most viable alternative to improve air services with no limitation and higher payload compared to turboprops. In addition, it provides distinct operational advantages, such as optimized seating capacity, cost efficiency, operating range, improved service quality, and flexibility of route development.”Given its capabilities, regional jets are the ‘go to’ aircraft for airlines looking to expand their domestic regional operations beyond the current ATR network,” he added.
In 2019, the island had welcomed 400,000 tourists, up 37 per cent year-on-year. In 2020, despite the impact of the COVID-19 pandemic, the number of passengers handled by the airport was 447,750, an increase of 4 per cent over 2019. Before the introduction of regional jets, turboprops were the only aircraft operating in exclusive destinations such as Côn Đảo airport. “The Embraer E190 allowed Bamboo Airways to offer jet services to the island. There are currently 36 aircraft movements to/from Côn Đảo every day – 16 performed by ATRs and 20, by E190s.”
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