VietNamNet Bridge – Economists believe it would be bad news if the T1 terminal at Noi Bai Airport falls into the hands of state-owned Vietnam Airlines Corporation. However, state management agencies do not think so.

Vietnam Airlines, the national flag air carrier, and Vietjet Air, a private emerging airline, both want to obtain the rights to operate the T1 Terminal at the Noi Bai International Airport in Hanoi.

Vietjet, which has been operational for several years, is a rookie in the market compared with the giant Vietnam Airlines which has been operational for tens of years and provides flights on dozens of domestic and international airlines.

However, this does not mean Vietnam Airlines can be sure of success in the battle.

Le Trong Sanh, former head of the flight control division of the Noi Bai Airport, said he did not think it was a good idea to allow Vietnam Airlines to exploit T1.

“If this happens, Vietnam Airlines will enjoy a monopoly, because it is the only player in the market,” he warned. “If other carriers cannot compete in airfares, the aviation market will decline.”

An analyst noted that Vietnam Airlines, as the state-owned air carrier, has been enjoying a monopoly for many years.

“The airfares set by Vietnam Airlines are always very high. Therefore, I would only fly with Vietnam Airlines if there is no other option,” he said.

Nguyen Thien Tong from the HCM City Technology University said if Vietnam Airlines would control the market airfare if it is the only player in the market.

Tong suggested offering concessions to Vietjet to exploit the E Hall of T1. Vietnam Airlines, which serves more passengers, should be given the other two halls.

Meanwhile, the remaining two halls would still be put under the state’s management, or given to another air carrier.

Tong, citing figures about the passengers, said that no air carrier needs the entire T1 to carry out its business plan, and that the airlines should not try to scramble for things they do not really need.

Tong said it was necessary to invite investors for bids to determine who will get the operation rights for the parts of the terminal.

Dr. Ta Van Loi from the Hanoi Economics University also thinks the matter needs to be settled through bidding.

Who will win the bids? According to Loi, investors bid for the right to provide services at T1, not to provide flights. Therefore, not only air carriers but investors in other business fields, including real estate, distribution and others, could join the bids.

Kim Chi