Viet airline industry soaring on local, foreign demand

[HANOI] Vietnam's fledgling airline industry is poised for a boom as local competition heats up with fleet expansions, new routes and planned share offers that are set to make it one of the world's three fastest-growing markets.

Even as the local economy chugs along at about 5 per cent growth, its slowest pace in 13 years, demand for domestic air travel is growing by double digits. That is translating into a surprisingly robust new source of business for Boeing, Airbus, and regional aircraft makers such as Mitsubishi Aircraft, Bombardier and Embraer SA.

The International Air Transport Association expects Vietnam to become the world's third-fastest growing market for international passengers and freight next year, and second-fastest for domestic passengers. Vietnam's Aviation Department expects 15 per cent growth in domestic passengers this year, more than double last year's 7 per cent rise.