Unlocking the Potential of Short-Haul Air Transport in Vietnam
On March 12, in Hanoi, short-haul aircraft manufacturer ATR released an in-depth report titled “Empowering Short-Haul Air Transport in Vietnam.” The report was conducted in collaboration with the Transport Engineering Design Incorporation (TEDI). It highlights the vast potential of Vietnam’s short-haul aviation market. ATR is committed to working with stakeholders to explore new opportunities for air transport networks.
Untapped Potential
Jean-Pierre Clercin, ATR’s Regional Director for Asia-Pacific, stated: “The short-haul air transport market has significant growth potential in Vietnam.” Short-haul aviation plays a crucial role in complementing road transport. It improves connectivity and strengthens the network of smaller cities. This also ensures that more regions benefit from economic growth.
ATR’s turboprop aircraft consume 45% less fuel than equivalent short-haul jets while emitting 45% less CO2. This provides a cost-effective and environmentally responsible solution for short-haul routes.
Domestic Route Study
TEDI’s study identified 149 domestic air routes within a 300-nautical-mile range (approximately 555 km). Among them, 87 routes have strong potential but remain unutilized. To operate these routes, a fleet of 25 ATR 72-600 aircraft would be required. The report also outlines a clear roadmap for airlines and policymakers.
Currently, 90% of Vietnam’s domestic flight traffic is concentrated at 10 of its 22 airports. Many local airports remain underutilized. Additionally, 25% of existing domestic flights operate on routes shorter than 300 nautical miles but use large aircraft, which is not cost-efficient.
Unlocking Short-Haul Aviation Potential in Vietnam
Aviation Industry Growth
Vietnam’s aviation sector is experiencing rapid growth, with projections exceeding 20% between 2023 and 2027. Rising demand requires a stronger and more connected air transport network. The government has approved plans to expand the airport network from 22 to 30 airports by 2030.
Experts suggest that short-haul carriers will not compete with existing airlines. Instead, they will focus on increasing flight traffic to local airports. Higher flight frequency to these airports will optimize infrastructure usage without requiring new construction or upgrades.
Technological Innovation
ATR is dedicated to advancing turboprop technology, aiming to create the most cost-efficient and modern short-haul aircraft. Currently, around 200 airlines in over 100 countries operate ATR aircraft, launching an average of 120 new routes annually.
In January 2022, ATR completed the first commercial flight powered by 100% sustainable aviation fuel, demonstrating its commitment to environmental responsibility.
Local Economic Development
Đào Ngọc Vinh, CEO of TEDI, stated: “We are delighted to collaborate with ATR in studying air traffic at Vietnamese airports.” Their goal is to highlight the potential of short-haul aviation. Increasing short-haul flights by 10% could boost local tourism by 5%, raise local GDP by 6%, and increase foreign direct investment by 8%.
ATR’s success in Japan and New Zealand demonstrates its ability to enhance connectivity and economic development. Short-haul aviation plays a vital role in driving economic growth and improving Vietnam’s competitiveness on the global stage.
The Future of Short-Haul Aviation
Vietnam has the potential to develop a more integrated air transport network, positioning the country as a key aviation hub in Southeast Asia. The market is expected to expand significantly as airlines broaden their networks to new destinations.
ATR is committed to working with stakeholders in Vietnam to provide modern, sustainable, and economically viable aviation solutions. The development of short-haul aviation will unlock new opportunities for the country’s economy.
Conclusion
Short-haul aviation holds immense potential in Vietnam. It not only enhances city connectivity but also stimulates economic development. With collaboration between ATR and TEDI, this market is expected to thrive in the near future.
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