The Civil Aviation Authority of Vietnam reported that the ongoing Middle Eastern conflict is negatively impacting the domestic aviation industry. Vietnam Airlines has to reroute flights to Europe to avoid Iranian and Iraqi airspace, increasing costs by approximately $2,000 per flight due to extended travel times of 10-15 minutes. Additionally, war risk insurance fees are projected to rise by 10-15%. Consequently, Airports Corporation of Vietnam (ACV) estimates a monthly revenue shortfall of about $10.9 million due to the decline in international flights. Vietnam Air Traffic Management Corporation (VATM) is also facing nearly $1 million in monthly losses as airlines adjust or cancel services. This situation affects the supply chain, particularly in electronics, with a risk of component shortages at production facilities in Bac Ninh and Thai Nguyen. The Civil Aviation Authority of Vietnam plans to implement measures including reduced airport service fees and strategies to cope with fluctuating oil prices.
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