Vietnam Airlines

Cambodia Angkor Air plans network and fleet expansion ahead of PAL-backed Cambodia Airlines launch

Cambodia Angkor Air is planning rapid fleet and network expansion as competition intensifies in the Cambodian market. The Cambodian flag carrier is expected to more than double its fleet by the end of 2015 and launch services to several new markets, including mainland China, Hong Kong, India and South Korea. Cambodia Angkor Air was established in 2009 as a joint venture with Vietnam Airlines but remains one of the smallest flag carriers in Southeast Asia, only operating domestically and to two neighbouring countries.

Cambodia Angkor Air has already seen its most dramatic expansion in its four-year history, launching three international routes over the last six months. Further rapid expansion of Cambodia Angkor Air and the planned launch of a second Cambodian scheduled carrier that will be affiliated with Philippine Airlines (PAL) should lead to more rapid growth in the Cambodian market. The Cambodian passenger market grew by 18% in 2012 and by 21% in 1Q2013, based on figures from Cambodia Airports.

VietJet to pursue more rapid expansion in 2013; Jetstar Pacific needs to respond – fast

VietJet Air is planning to add three new domestic and three new international routes in the coming months as Vietnam’s leading low-cost carrier continues to pursue rapid expansion. VietJet has already surpassed rival LCC Jetstar Pacific to become Vietnam’s second largest carrier after Vietnam Airlines with approximately a 15% share of the country’s fast-growing domestic market. The privately-owned carrier will see its share of capacity in Vietnam’s domestic market approach 20% by mid-2013 – an impressive achievement given it only launched services in Dec-2011.

VietJet now operates 10 routes, including one international route, with a fleet of six A320s. It plans to operate by the end of 2013 a fleet of 10 A320s on 16 routes – 12 domestic and four international.

VietJet starts to exploit huge potential of Vietnam’s international low-cost airline market

Vietnam’s largest low-cost carrier, VietJet Air, is preparing to quickly expand its international network, taking advantage of growing demand for budget travel to and from Vietnam. The carrier launched its first international route on 10-Feb-2013, Ho Chi Minh-Bangkok, and is looking at several additional potential international destinations in Southeast and North Asia.

Two more international routes as well as additional capacity domestically, where VietJet already has captured a 15% share of the market, are expected in 2013. Vietnam is poised for further LCC domestic and international growth as LCC penetration rates in the country’s domestic and international markets are the lowest among major Southeast Asian countries. VietJet is well positioned, along with a rejuvenated but still very small Jetstar Pacific, to cash in on Vietnam’s LCC boom.

Ethiopian Airlines extends its Asian reach and links South America with China

Ethiopian Airlines plans to expand its Asian network with the addition of Ho Chi Minh City, Manila and Seoul Incheon from 18-Jun-2013. Hong Kong will also become a direct route from Addis Ababa, rather than operating via Bangkok. But those plans could come unstuck if the grounded 787 fleet is not cleared to return to service by then.

Ethiopian intends to operate Ho Chi Minh, Manila and Seoul Incheon via its two existing Asian hubs, Hong Kong and Bangkok. Seoul and Manila will be an extension of the new direct Addis Ababa-Hong Kong route and Ho Chi Minh is added to the Addis Ababa-Bangkok service. Recently added Kuala Lumpur via Bangkok will be expanded with a fourth frequency from 24-Jun-2013.

Ho Chi Minh and Manila will be served three times weekly while Seoul will have four weekly frequencies. All routes will be operated using Boeing 767-300ER aircraft according to the 12-Feb-2013 GDS timetable and inventory display.

Cambodia poised for more double-digit growth as Cambodia Angkor Air expands and Qatar Airways enters

The Cambodian market is poised for more rapid growth in 2013 after quietly expanding by 18% in 2012, making it one of the fastest growing markets in Asia. Flag carrier Cambodia Angkor Air is pursuing significant expansion albeit from a very small base while international carriers are also continuing to add services in the Cambodian market.

The Mar-2013 suspension of service from Air France, which became in 2011 the first European carrier to serve Cambodia in decades, is a blow for the country’s emerging economy and tourism industry. But the loss of Air France is being offset by the addition of Qatar Airways, which will become in Feb-2013 the first Gulf carrier to serve Cambodia. Qatar could be followed by other Gulf carriers as well as more LCCs from the more traditional markets of Southeast and North Asia, which in recent years have been consistently building up their operations in Cambodia.

Laos aviation market poised for more rapid growth after doubling in size in only 15 months

The Laos aviation market, which has quietly more than doubled in size over the last 15 months, is poised for more rapid growth in 2013 as both of the country’s small carriers continue to expand their fleets and networks.

Government-owned Lao Airlines, which added two A320s in 4Q2011 and a third A320 in 4Q2012, plans to take a fourth A320 and add two ATR 72-600s in 2013. Meanwhile, privately-owned start-up Lao Central Airlines plans to add three Sukhoi Superjet 100s in 2013, with the first aircraft due to be delivered in the coming weeks, to supplement its fleet of two Boeing 737-400s.

Laos is also starting to attract increasing interest from foreign carriers as the relatively unpopulated and rural Southeast Asian country gradually emerges as a popular tourist destination. The upcoming opening of a new terminal at the historical town of Luang Prabang, where the runway was recently extended to accommodate jets, is expected to attract several international carriers. Only two foreign carriers now serve Luang Prabang and only six foreign carriers serve Laos overall, accounting for slightly less than 50% of the country’s total international capacity.