Vietnam airline industry’s recovery hurt by declining demand

Tough measures: An Airbus A321 aircraft of Bamboo Airways taxis at Noi Bai airport in Hanoi. The airline is temporarily suspending routes from Hanoi to Phu Quoc, Cam Ranh and Da Nang, as well as some of its international routes. — Reuters

HANOI: Slower recovery in international markets and lower demand in domestic air travel are hindering the recovery of Vietnam’s airline industry, say industry insiders and policymakers.

“Economic downturn, inflation and exchange rate fluctuation are all contributing factors to consumers’ tightening spending, which has resulted in lower demand in key markets including Japan, South Korea and China,” said Dinh Viet Thang, director of the Civil Aviation Authority of Vietnam (CAAV).