Vietnam Aviation Standard Report Q2/2019
VIETNAM AVIATION INDUSTRY
Demand for customer and cargo transport in 2018 grew worldwide, but at the lowest rate in the last 4 years. The growth rate in the number of customers in 2018 was about 6.1%, which was equivalent to the average of the last 5 years, but lower than the strong growth of 2017 (7.2%). The global domestic air travel in 2018 increased 7.0% over 2017. In general, all markets witnessed growth, especially the Indian and Chinese markets.
According to data published by IATA, Vietnam is in the group of 5 markets with passengers traveling by air. The revenue of aviation industry continued to grow strongly over the years, the average growth rate in the period of 2010-2018 reached 15.5%.
Vietnam aviation industry has a low level of competition when the number of participating firms is much lower than other countries in the region. The number of Vietnamese planes continuously increased over the years with CAGR of 9.3% in the period of 2011-2018 . In Q1/2019, VietJet Air ranked first in the number of flights operated with 374 flights per day, rising 15% over the same period last year.
The number of flights operated in Q1/2019 grew 9% over the same period in 2018 thanks to the entry of Bamboo Airline. In Q1/2019, the airlines' OTP punctuality dropped sharply, whose reason was attributed to the weather and technical problems of the airlines.
2018 was a special year when domestic airlines' growth rates all achieved higher than 2-digit due to the booming demand of passengers. According to VIRAC's estimates, in the period of 2017-2023, the annual growth rate of air passengers will reach 10.9%.
Demand for customer and cargo transport in 2018 grew worldwide, but at the lowest rate in the last 4 years. The growth rate in the number of customers in 2018 was about 6.1%, which was equivalent to the average of the last 5 years, but lower than the strong growth of 2017 (7.2%). The global domestic air travel in 2018 increased 7.0% over 2017. In general, all markets witnessed growth, especially the Indian and Chinese markets.
According to data published by IATA, Vietnam is in the group of 5 markets with passengers traveling by air. The revenue of aviation industry continued to grow strongly over the years, the average growth rate in the period of 2010-2018 reached 15.5%.
Vietnam aviation industry has a low level of competition when the number of participating firms is much lower than other countries in the region. The number of Vietnamese planes continuously increased over the years with CAGR of 9.3% in the period of 2011-2018 . In Q1/2019, VietJet Air ranked first in the number of flights operated with 374 flights per day, rising 15% over the same period last year.
The number of flights operated in Q1/2019 grew 9% over the same period in 2018 thanks to the entry of Bamboo Airline. In Q1/2019, the airlines' OTP punctuality dropped sharply, whose reason was attributed to the weather and technical problems of the airlines.
2018 was a special year when domestic airlines' growth rates all achieved higher than 2-digit due to the booming demand of passengers. According to VIRAC's estimates, in the period of 2017-2023, the annual growth rate of air passengers will reach 10.9%.
ABBREVIATION
EXECUTIVE SUMMARY
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
1.2 Legal framework
2. WORLD AVIATION INDUSTRY
2.1 Development history of the industry
2.2 Current situation of industry development
2.3 Top largest airlines in the world
3. VIETNAM AVIATION INDUSTRY
3.1 Development history of the industry
3.2 Value chain of aviation industry
3.3 Industry scale
3.4 Current situation of aviation industry in Vietnam
4. INDUSTRY DEVELOPMENT PLANNING
5. ENTERPRISE ANALYSIS
5.1 Enterprise production
5.2 Enterprise analysis
EXECUTIVE SUMMARY
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
1.2 Legal framework
2. WORLD AVIATION INDUSTRY
2.1 Development history of the industry
2.2 Current situation of industry development
2.3 Top largest airlines in the world
3. VIETNAM AVIATION INDUSTRY
3.1 Development history of the industry
3.2 Value chain of aviation industry
3.3 Industry scale
3.4 Current situation of aviation industry in Vietnam
4. INDUSTRY DEVELOPMENT PLANNING
5. ENTERPRISE ANALYSIS
5.1 Enterprise production
5.2 Enterprise analysis
LIST OF TABLES
Table 1: For flights across Vietnamese airspace
Table 2: For flights across Vietnam’s airspace and notification zone under Vietnamese tracking
Table 3: Table comparing some input costs between the LCC and FSC models
Table 4: Top 10 passenger airlines (according to RPK), 2017
Table 5: Top 10 cargo airlines (according to FTK), 2017
Table 6: Top 15 largest air cargo carriers in the world, 2016 - 2017
Table 7: Aviation services
Table 8: Top 10 world's largest airlines, 2018
Table 9: Flight fleet HVN, 2018
Table 10: VietJet Air fleet, 2018
Table 11: The world's top 10 punctual airlines, 2018
Table 12: Average occupancy rate, 2010 - 2018
Table 13: List of airports in Vietnam
Table 14: Chain of services and businesses in the airline service group
Table 15: Enterprises providing airport cargo terminal services in Vietnam
Table 16: Projects of upgrading airport infrastructure in Vietnam
Table 17: Visa exemption policy of Vietnam, 2018
Table 18: Growth rate, 2007 - 2030
Table 19: Transport volume of airlines in Vietnam, 2007 - 2030
Table 20: Top typical businesses in the industry in 2018
Table 21: Vietnam Airlines flight routes 2016-2018
Table 1: For flights across Vietnamese airspace
Table 2: For flights across Vietnam’s airspace and notification zone under Vietnamese tracking
Table 3: Table comparing some input costs between the LCC and FSC models
Table 4: Top 10 passenger airlines (according to RPK), 2017
Table 5: Top 10 cargo airlines (according to FTK), 2017
Table 6: Top 15 largest air cargo carriers in the world, 2016 - 2017
Table 7: Aviation services
Table 8: Top 10 world's largest airlines, 2018
Table 9: Flight fleet HVN, 2018
Table 10: VietJet Air fleet, 2018
Table 11: The world's top 10 punctual airlines, 2018
Table 12: Average occupancy rate, 2010 - 2018
Table 13: List of airports in Vietnam
Table 14: Chain of services and businesses in the airline service group
Table 15: Enterprises providing airport cargo terminal services in Vietnam
Table 16: Projects of upgrading airport infrastructure in Vietnam
Table 17: Visa exemption policy of Vietnam, 2018
Table 18: Growth rate, 2007 - 2030
Table 19: Transport volume of airlines in Vietnam, 2007 - 2030
Table 20: Top typical businesses in the industry in 2018
Table 21: Vietnam Airlines flight routes 2016-2018
LIST OF FIGURES
Figure 1: GDP growth by quarter, 2016 - 2019
Figure 2: Transportation and warehousing’s contribution to GDP, 2013 - 3/2019
Figure 3: VND/USD exchange rate, 1/2013 – 3/2019
Figure 4: Disposable income and household expenditure, 2010 – 2017e
Figure 5: World crude oil prices, 1/2011 - 3/2019
Figure 6: Tourist arrivals to Vietnam, 2010-2018e
Figure 7: Commodities import - export, 2016 – Q1/2019
Figure 8: The average price of crude oil and petrol in the years 2011 - 2018e
Figure 9: Global aviation industry revenue, 2010 - 2019f
Figure 10: Structure of aviation industry by sector, 2018
Figure 11: Revenue of the world passenger transport segment, 2017
Figure 12: Revenue structure of auxiliary services, 2017
Figure 13: The number of customers is not, 2012 - 2018
Figure 14: Growth rate of RPK, FTK, 2012 - 2018
Figure 15: Growth rate of aviation passenger transportation market by region, 2018
Figure 16: Passenger revenue structure of the whole industry per km (RPKs), 2017 - 2018
Figure 17: Domestic passenger transportation market growth in some countries, 2017 - 2018
Figure 18: Loading coefficient, 2012 - 2018
Figure 19: Tourism criteria and aviation commercial goods value, 2012 - 2017
Figure 20: Number of airports connected and real transportation costs, 2012 - 2018
Figure 21: Accident rate/1 million flights by region, 2018
Figure 22: Growth of freight routes between regions, 2007 - 2037f
Figure 23: Growth of CAGR of commodity groups with world air transport, 2006 - 2016
Figure 24: Structure of aircraft type used in air cargo routes, 2018e
Figure 25: Revenue of non-regional port industry, 2016
Figure 26: Cargo output by regional airports, 2016
Figure 27: Top 10 airports with the largest number of passengers through the world, 2016
Figure 28: Capital and fixed assets in the airline passenger transport, 2010-2017
Figure 29: Aviation revenue, 2010 - 2017
Figure 30: Sales revenue, 2010 - 2018e
Figure 31: Revenue structure by sales channel, 2010 - 2018
Figure 32: Number of airlines in some ASEAN countries, 2018
Figure 33: Fuel consumption of aircraft lines, 2018
Figure 34: Cost/seat according to listed aircraft prices, 2018
Figure 35: Domestic aviation market share in Vietnam, 2018
Figure 36: Other international shipping market share, 2018
Figure 37: Market share of domestic air cargo transport by volume, 2017
Figure 38: Market share of international air cargo transport by volume, 2017
Figure 39: Proportion of using passenger transport vehicles, 2013-2018
Figure 40: Proportion of using goods transport vehicles, 2012 - 2018
Figure 41: Number of Vietnamese aircraft, 2011 - 2018e
Figure 42: Aircraft structure by type, 4/2018
Figure 43: Growth of tourists over the years, 2012 - 2018e
Figure 44: Domestic market share, 2011 - 2018e
Figure 45: Number of flights operated, 2014 - Q1/2019
Figure 46: Proportion of flights operated by airline, Q1/2019
Figure 47: The proportion of flights taking off on time, Q1/2019
Figure 48: The cause group took off on time, Q1/2019
Figure 49: Causes of cancellations, Q1/2019
Figure 50: Structure according to the causes of non-punctual take-off of each firm, Q1/2019
Figure 51: Cancellation structure according to the causes of each firm, Q1/2019
Figure 52: Market share of airport capacity, 2017
Figure 53: Market share by enterprises providing cargo terminal services at Noi Bai airport, 2017
Figure 54: Market share by enterprises providing cargo terminal services at Tan Son Nhat airport, 2017
Figure 55: Non-aeronautical revenue/customers of some regional airports, 2017
Figure 56: Passenger scale of some airports in the region, 2017
Figure 57: Revenue of some airports in the region, 2017
Figure 58: Increase the number of customers of Vietnam Airlines 2013-2018
Figure 59: Network routes, 2011 - 2018
Figure 60: Growth in passenger volume of VietJet, 2013 - 2019e
Figure 61: Shareholder structure ACV, 2018
Figure 62: SCSC shareholder structure, 2018
Figure 63: NCTS shareholder structure, 2018
Figure 64: SAGS shareholder structure, 2018
Figure 65: SASCO shareholder structure, 2018
Figure 66: Shareholder structure of TASECO Airs, 2018
Figure 67: NASCO shareholder structure, 2018
Figure 68: CIAS shareholder structure, 2018
Figure 69: NCS Shareholder structure, 2018
Figure 70: MASCO Shareholder structure, 2018
Figure 71: Net revenue of transport and airport groups, 2017 - 2018
Figure 72: Net revenue from aviation and cargo service groups, 2017 - 2018
Figure 73: Revenue structure VJC, 2018
Figure 74: Revenue structure HVN, 2018
Figure 75: Gross profit and gross profit margin, 2017 - 2018
Figure 76: Self-financing rate, 2017 - 2018
Figure 77: Selling expenses, 2017 - 2018
Figure 78: Administrative expenses, 2017 - 2018
Figure 79: Asset turnover, 2018
Figure 80: Inventory turnover, 2018
Figure 81: Figure 10: Receivable turnover, 2018
Figure 82: Rate of return, 2017 - 2018
Figure 83: Payment index, 2017 - 2018
Figure 1: GDP growth by quarter, 2016 - 2019
Figure 2: Transportation and warehousing’s contribution to GDP, 2013 - 3/2019
Figure 3: VND/USD exchange rate, 1/2013 – 3/2019
Figure 4: Disposable income and household expenditure, 2010 – 2017e
Figure 5: World crude oil prices, 1/2011 - 3/2019
Figure 6: Tourist arrivals to Vietnam, 2010-2018e
Figure 7: Commodities import - export, 2016 – Q1/2019
Figure 8: The average price of crude oil and petrol in the years 2011 - 2018e
Figure 9: Global aviation industry revenue, 2010 - 2019f
Figure 10: Structure of aviation industry by sector, 2018
Figure 11: Revenue of the world passenger transport segment, 2017
Figure 12: Revenue structure of auxiliary services, 2017
Figure 13: The number of customers is not, 2012 - 2018
Figure 14: Growth rate of RPK, FTK, 2012 - 2018
Figure 15: Growth rate of aviation passenger transportation market by region, 2018
Figure 16: Passenger revenue structure of the whole industry per km (RPKs), 2017 - 2018
Figure 17: Domestic passenger transportation market growth in some countries, 2017 - 2018
Figure 18: Loading coefficient, 2012 - 2018
Figure 19: Tourism criteria and aviation commercial goods value, 2012 - 2017
Figure 20: Number of airports connected and real transportation costs, 2012 - 2018
Figure 21: Accident rate/1 million flights by region, 2018
Figure 22: Growth of freight routes between regions, 2007 - 2037f
Figure 23: Growth of CAGR of commodity groups with world air transport, 2006 - 2016
Figure 24: Structure of aircraft type used in air cargo routes, 2018e
Figure 25: Revenue of non-regional port industry, 2016
Figure 26: Cargo output by regional airports, 2016
Figure 27: Top 10 airports with the largest number of passengers through the world, 2016
Figure 28: Capital and fixed assets in the airline passenger transport, 2010-2017
Figure 29: Aviation revenue, 2010 - 2017
Figure 30: Sales revenue, 2010 - 2018e
Figure 31: Revenue structure by sales channel, 2010 - 2018
Figure 32: Number of airlines in some ASEAN countries, 2018
Figure 33: Fuel consumption of aircraft lines, 2018
Figure 34: Cost/seat according to listed aircraft prices, 2018
Figure 35: Domestic aviation market share in Vietnam, 2018
Figure 36: Other international shipping market share, 2018
Figure 37: Market share of domestic air cargo transport by volume, 2017
Figure 38: Market share of international air cargo transport by volume, 2017
Figure 39: Proportion of using passenger transport vehicles, 2013-2018
Figure 40: Proportion of using goods transport vehicles, 2012 - 2018
Figure 41: Number of Vietnamese aircraft, 2011 - 2018e
Figure 42: Aircraft structure by type, 4/2018
Figure 43: Growth of tourists over the years, 2012 - 2018e
Figure 44: Domestic market share, 2011 - 2018e
Figure 45: Number of flights operated, 2014 - Q1/2019
Figure 46: Proportion of flights operated by airline, Q1/2019
Figure 47: The proportion of flights taking off on time, Q1/2019
Figure 48: The cause group took off on time, Q1/2019
Figure 49: Causes of cancellations, Q1/2019
Figure 50: Structure according to the causes of non-punctual take-off of each firm, Q1/2019
Figure 51: Cancellation structure according to the causes of each firm, Q1/2019
Figure 52: Market share of airport capacity, 2017
Figure 53: Market share by enterprises providing cargo terminal services at Noi Bai airport, 2017
Figure 54: Market share by enterprises providing cargo terminal services at Tan Son Nhat airport, 2017
Figure 55: Non-aeronautical revenue/customers of some regional airports, 2017
Figure 56: Passenger scale of some airports in the region, 2017
Figure 57: Revenue of some airports in the region, 2017
Figure 58: Increase the number of customers of Vietnam Airlines 2013-2018
Figure 59: Network routes, 2011 - 2018
Figure 60: Growth in passenger volume of VietJet, 2013 - 2019e
Figure 61: Shareholder structure ACV, 2018
Figure 62: SCSC shareholder structure, 2018
Figure 63: NCTS shareholder structure, 2018
Figure 64: SAGS shareholder structure, 2018
Figure 65: SASCO shareholder structure, 2018
Figure 66: Shareholder structure of TASECO Airs, 2018
Figure 67: NASCO shareholder structure, 2018
Figure 68: CIAS shareholder structure, 2018
Figure 69: NCS Shareholder structure, 2018
Figure 70: MASCO Shareholder structure, 2018
Figure 71: Net revenue of transport and airport groups, 2017 - 2018
Figure 72: Net revenue from aviation and cargo service groups, 2017 - 2018
Figure 73: Revenue structure VJC, 2018
Figure 74: Revenue structure HVN, 2018
Figure 75: Gross profit and gross profit margin, 2017 - 2018
Figure 76: Self-financing rate, 2017 - 2018
Figure 77: Selling expenses, 2017 - 2018
Figure 78: Administrative expenses, 2017 - 2018
Figure 79: Asset turnover, 2018
Figure 80: Inventory turnover, 2018
Figure 81: Figure 10: Receivable turnover, 2018
Figure 82: Rate of return, 2017 - 2018
Figure 83: Payment index, 2017 - 2018
