Friday, November 14, 2008

CAAV says will open skies for qualified foreign airlines

The Civil Aviation Administration of Vietnam (CAAV) will make it easy for more foreign airlines, especially carriers from ASEAN, to fly to this market, even before pacts signed by the bloc’s members to liberalize air passenger and cargo services in the region takes effect. (Local major airports, including Tan Son Nhat in HCMC and Noi Bai in Hanoi, are expected to equally compete with airports in the other member countries of the Association of Southeast Asian Nations (ASEAN).)
CAAV officials said that Vietnam had a policy to open the aviation market to those foreign airlines able to meet security and safety requirements to this growing market in order to help enhance the competitive edge of local airports.
Local major airports, including Tan Son Nhat in HCMC and Noi Bai in Hanoi, are expected to equally compete with airports in the other member countries of the Association of Southeast Asian Nations (ASEAN), said Vo Huy Cuong, director of CAAV’s Air Transport Department.
Cuong told the Daily after he accompanied Minister of Transport Ho Nghia Dung to the Philippines to attend the two-day 14th ASEAN Transport Ministers Meeting in Manila and sign the agreements last week.
The ASEAN Multilateral Agreement on the Full Liberalization of Air Freight Services and the Multilateral Agreement on Air Services allow the regional airlines unlimited air freedom rights to transport passengers to the 10 member nations’ capital cities from 2010.
Cuong said the agreements would pave the way for a unified aviation market among ASEAN member countries after that and make it easier for people to travel in the region.
Lai Xuan Thanh, deputy director general of CAAV, told the Daily on the phone on Wednesday that liberalization of air passenger and cargo services within regions was market tendency.
However, Thanh said Vietnam would follow a road map for such liberalization in ensuring the benefits for local airlines, the efficiency of airports and how to make the most of licenses for foreign airlines to support air traffic, the development of Vietnam’s aviation market and the economy.
He said Vietnam had actually reached a single, unified aviation market with Cambodia, Laos and Myanmar, and was carrying out bilateral air deals with nations in the ASEAN region and in North and East of Asia.
Thanh said Vietnam was following a policy to open the international airports in Hanoi and the central coastal city of Danang for airlines from Malaysia, Singapore and Thailand as well as certain nations in North and East Asia under the bilateral air deals with these nations.
Bilateral air agreements often set restrictions on a predetermined number of entitlements for passengers and cargo that may be transported. But, these deals are now the norm among the ASEAN members, which groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Currently, CAAV still restricts flight frequency of foreign airlines to and from Tan Son Nhat International Airport in HCMC, a city that many foreign air carriers want to fly to because of its position as the economic hub of Vietnam.
CAAV figures show there are more than 40 foreign airlines active in Vietnam, a market where the International Air Transport Association (IATA) put the average annual passenger traffic growth for 2007-2011 at 7.7% and freight at 7.5%.
(Source: SGT)

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