Vingroup breaks into aviation with Vinpearl Air?

09:00 | 12/07/2019
On May 29, 2019, the Hanoi Business Registration Office granted a change of registration to VinAsia Development Service and Trading JSC, which was established on April 22 this year with a charter capital of VND1.3 trillion ($56.52 million), to change its name to Vinpearl Air Aviation JSC.
vingroup breaks into aviation with vinpearl air
Is Vingroup is joining the Vietnamese aviation scene through Vinpearl Air. Source: Hanoinews

Along with changing its name, the main business line has also been changed from real estate to passenger air transport with the headquarter of Vinpearl Air at Vinhomes Riverside, Long Bien district, Hanoi.

The three founding shareholders include VinAsia Tourism Development JSC (45 per cent), Hoang Quoc Thuy (30 per cent), and Pham Khac Phuong (25 per cent). Phuong used to hold key positions at Vingroup and Vinpearl.

Together with Vinpearl Air, 2019 witnessed the launching of two new airlines Vietravel Airlines (established by Vietravel) and Thien Minh Airlines of Thien Minh Group. The Vietnamese aviation segment has become a hot topic among enterprises, with many pouring money into the segment as Vinpearl Air will join three other airlines in the queue to begin operations in Vietnam, including Thien Minh Aviation, Vietravel Airlines, and Vietstar Airlines.

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While Vingroup has yet to officially announce joining the aviation sector, on July 9 Vingroup and CAE Group (Canada) signed an agreement on co-operation on the training of pilots, flight engineers, and other aircraft personnel to provide highly skilled human resources for Vietnam. It is expected that this co-operation will yield be 400 international-standard pilots and mechanics each year.

To meet the strong development of Vietnam and the regional civil aviation industry and contribute to solving the scarcity of pilots and human resources for aviation, Vingroup decided to open pilot and machine training schools.

Showcasing this ambition, Vingroup has signed a co-operation agreement with CAE Oxford Aviation Academy, the leading aeronautical training organisation, to set up VinAviation High-Tech Human Resources Training School and Vinpearl Air Flight Training Center in Vietnam.

The preliminary report to review service quality in the first six months of 2019 compiled by the Air Transport Department under the Civil Aviation Authority of Vietnam showed that the air passenger market in the first half of this year continued to grow, however, at a slower pace than last year, at 9.4 per cent with 38.5 million passengers.

Passenger volume through Vietnam's airports reached 56.8 million, an increase of 8.4 per cent compared to the same period in 2018. Vietnamese airlines transported approximately 27 million passengers, up 7.7 per cent. Also, in the first half of 2019, the Vietnamese aviation market welcomed a new player, Bamboo Airways.

Currently, there are more than 72 international and four Vietnamese airlines exploiting over 200 regular international routes and charter flights from 25 countries and territories to eight destinations in Vietnam, including Hanoi, Danang, Ho Chi Minh City, Cam Ranh, Phu Quoc, Can Tho, Cat Bi, and Da Lat.

Vietnamese airlines operate 155 regular routes and charter regular flights to 89 destinations of 20 countries and territories with a market share of 41 per cent.

Vietnamese airlines operate 48 domestic routes connecting 22 airports, of which Vietnam Airlines operates 33 routes, VietJet Air 35 routes, Jetstar Pacific 23 routes, Vietnam Air Service Company (VASCO) nine routes, and Bamboo Airways 24 routes.

As of June 30, 2019, Vietnamese airlines operated 197 aircraft, 30 more than a year before while the ownership rate reached 27.4 per cent (54 aircraft owned).

Based on MasterCMS Ultimate Edition Ver 2.8 2018