Aviation sector suffers from huge rising cost due to Russia-Ukraine tension

Aviation sector suffers from huge rising cost due to Russia-Ukraine tension, according to the report which the Civil Aviation Authority of Vietnam (CAAV) has just sent to the Ministry of Transport about the impact of Russia-Ukraine tension on the aviation sector.

Accordingly, both passengers and airlines have been affected by route change, arising costs and fees from insurance, payment and backup risk. 

Currently, Vietnam Airlines is exploiting air routes to Russia while the national flag carrier and Bamboo Airways are operating air routes to Europe and the United States using air routes transiting through Russia.

When the air routes through Russia are prohibited to exploit, the flights to or from Europe have to change the travel plans through China, Kazakhstan or North Africa. The flight duration is additionally extended from 60 minutes to 120 minutes per flight triggering the fees to soar from US$10,600 to US$21,200 per flight.

In reality, Vietnam Airlines is exploiting six flights per week linking Vietnam and Europe with the arising cost of around US$70,000 to US$130,000 per week while Bamboo Airways is operating three Vietnam- Europe flights weekly with arising cost from US$35,000 to US$65,000 a week.

Besides, the flights to the US have to adjust the air routes which will avoid the Russian airspace triggering the increase of flight duration from 20 to 30 minutes based on each exploitation time. Vietnam Airlines is operating four flights per week to the United States and the arising cost is expected to reach around US$20,000 to US$40,000 per week.

The CAAV also informed that the Hanoi – Moscow air route is being suspended due to several issues and obstacles related to flights preparation, technical assistance and flight insurance.

The CAAV said that it would closely keep eyes on the development of the tension and be ready for supporting the airlines to re-exploit the international flights in general and flights to Russia in particular.