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Press Release No.: 1

Date: 14 January 2011

Aviation Opportunities for Vietnam

Ho Chi Minh City – The International Air Transport Association (IATA) identified three areas of focus for the Vietnamese aviation industry—global standard technology for air traffic management, more cost-efficient airports and air navigation services and greater efficiency by taking advantage of IATA’s Simplifying the Business program.

“The future for Vietnamese aviation is bright.  By 2014, Vietnam is projected to be the world’s 3rd fastest growing market for international passengers and freight, and the 2nd fastest for domestic passengers.  But it is a future that cannot be taken for granted. Vietnamese aviation must be built and supported by sound policies that take into account that this is a dynamic industry where change is the only constant,” said Giovanni Bisignani, IATA’s Director General and CEO. 

Bisignani is currently visiting Vietnam, where he is meeting with Vietnam Airlines, the Southern Airport Corporation and VATM. During his meetings he emphasized the following three priorities:

Global standard technology for Air Traffic Management: “Vietnam has a world class air navigation service provider.  VANSCORP was awarded an IATA Eagle Award for most improved ANSP in 2009.  While VATM has taken over from VANSCORP, there is still a lot of work to be done to prepare the region for the expected enormous traffic expansion.  As a leader in the Mekong region, I hope VATM will make the implementation of ADS-B and Performance Based Navigation (PBN) a priority. This is in line with the global standards set in the International Civil Aviation Organization’s (ICAO) roadmap for air traffic management,” said Bisignani.  ADS-B allows aircraft to fly more efficiently using satellite based navigation systems while PBN uses the equipment on board aircraft to improve landings.

Cost efficient infrastructure:  “We appreciate the 3-year discount scheme implemented in April last year to provide charges relief to airlines at Vietnam’s major airports.  It is a clear signal that the government recognizes the important aviation plays, and will support the aviation growth in Vietnam.  Additional efforts are also needed to reduce the cost burden on current users of Vietnam’s airports and airspace. As Vietnam’s airports expand to meet the growing demand for air travel, it is important to have cost efficient infrastructure following ICAO’s charging principles of consultation with users, transparency, cost recovery and non discrimination in order to maximize the full potential that aviation brings,” said Bisignani.

Improved efficiency with IATA’s Simplifying the Business program: “Improving efficiency will be critical in maintaining Vietnam’s competitiveness.  IATA e-freight is one of the Simplifying the Business projects that improves service by taking paper out of the air cargo supply chain, and will generate $4.9 billion in annual savings.   IATA, Vietnam Airlines and freight forwarders are looking to implement e-freight in Vietnam.  But we need the government to ratify the Montreal Convention 99 so that e-freight can be a reality and deliver savings for the industry,” said Bisignani.

“At the end of 2010, airlines worldwide completed the implementation of the 2D bar coded boarding pass (BCBP).  But airlines operating at Hanoi Noi Bai Airport are still unable to reap the benefits from the BCBP as the cost-efficient 2D bar code technology will only be available in the first half of this year.  This is a rare exception in a world that is over 99% BCBP-capable. I urge the Northern Airport Corporation to make the implementation of BCBP a priority,” said Bisignani. BCBP will save the industry up to $1.5 billion annually.  

For more information, please contact:

Albert Tjoeng
Assistant Director
Corporate Communications
Asia Pacific
Tel: +65 64992286
Email: corpcomms@iata.org

Notes for Editors:

  • IATA (International Air Transport Association) represents some 230 airlines comprising 93% of scheduled international air traffic.
  • You can follow us at http://twitter.com/iata2press for news specially catered for the media.
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