Vietnam’s growing aviation sector has been the focus of a recent whitepaper, “Propelling Vietnam’s Regional Aviation,” unveiled by ATR, the world’s leading manufacturer of regional aircraft.
The publication suggests there’s a significant opportunity to enhance connectivity and drive economic growth by focusing on regional air travel.
The whitepaper was recently presented at the “Unlocking Vietnam’s Regional Aviation” workshop in Hanoi. It marks a collaboration between ATR, Business France, and Vietnamese transport consultancy TEDI (Transport Engineering Design Inc.).
The report notably highlights the untapped potential of regional airports and shorter domestic routes.
Current Landscape: Bottlenecks and Missed Opportunities
Currently, a few key airports heavily concentrate Vietnam’s domestic air traffic. A significant 90% of flights operate through just 10 of the country’s 22 airports, leaving many regional hubs underutilized.
This imbalance creates bottlenecks and limits accessibility for communities outside major cities.
Furthermore, a quarter of domestic flights cover distances under 300 nautical miles (555 kilometers).
These routes are often serviced by larger aircraft, which are less efficient and cost effective for shorter trips. This leads to reduced flight frequency and higher operating costs.
Enhancing Regional Aviation
The whitepaper proposes a shift towards regional aviation, using aircraft like ATR turboprops, known for their fuel efficiency and lower environmental impact.
Jean-Pierre Clercin, Head of Region Asia Pacific at ATR, emphasizes that regional aviation can “significantly enhance connectivity across Vietnam.”
By complementing existing surface transport, regional flights can improve mobility, connect secondary cities, and distribute the benefits of economic growth more evenly.
The Advantages of ATR Turboprops
ATR aircraft offer a compelling solution for Vietnam’s regional aviation needs. They consume 45% less fuel and emit 45% less CO2 compared to similar sized regional jets. This translates to lower operating costs for airlines and a reduced environmental footprint.
These aircraft are ideal for connecting smaller cities and underserved regions, enabling airlines to operate profitable routes while stimulating local economies.
A Market Ripe for Expansion
Vietnam’s aviation sector is experiencing rapid growth, with domestic air travel projected to increase by over 20% between 2023 and 2027. This surge in demand necessitates a more robust and interconnected air transport network.
The Vietnamese government’s plan to expand the number of commercial airports from 22 to 30 by 2030 further underscores the importance of regional aviation in connecting communities and unlocking economic potential.
The Numbers Don’t Lie: Untapped Potential
TEDI’s research identified 149 domestic routes within 300 nautical miles. Notably, 87 of these routes, while possessing traffic potential, remain unserved. To effectively serve these routes, a fleet of approximately 25 ATR 72-600 aircraft would be required.
Đào Ngọc Vinh, General Director of TEDI, highlights the “significant regional potential” identified in the study. The whitepaper provides a clear roadmap for airlines and policymakers to capitalize on this opportunity.
The Economic and Social Impact
The benefits of regional aviation extend beyond improved connectivity. Studies show that a 10% increase in regional flights can lead to a 5% rise in local tourism, a 6% boost in regional GDP, and an 8% increase in foreign direct investment.
Examples from markets like Japan and New Zealand demonstrate how regional aviation can drive economic development and connectivity.
A Vision for the Future
By tapping into the potential of regional aviation, Vietnam can create a more integrated air transport network, aligning with its vision of becoming a key aviation gateway in Southeast Asia.
ATR remains committed to partnering with Vietnamese stakeholders to deliver modern, sustainable, and economically viable solutions for the country’s aviation needs. This collaboration will be vital in transforming Vietnam’s regional aviation landscape and unlocking its full potential.
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