The COVID-19 pandemic has caused the aviation industry to face arguably the most challenging time in its history. Airlines across the world, including in Southeast Asia, have been deeply affected by the prolonged and universal halt to international air travel.
Domestic flights have provided some much-needed revenue to local carriers. But with multiple and unforeseen waves of new virus cases, lockdowns and other travel restrictions, and a public generally fearful of travelling, domestic flights have not been enough to make up for the massive shortfall in revenue lost from international air travel.
Despite all the current gloom for the aviation industry, there may be light at the end of the tunnel as the world glimpses life after the pandemic. This is mainly down to vaccinations. With people confined to their homes for over a year in many Western countries, there is pent-up demand to travel. As those people are vaccinated, they will want to get out of their houses and fly somewhere.
Moreover, household savings have increased for those fortunate enough to be working throughout the pandemic in their homes, and with few options to go out and spend. This combination of travel demand and increased disposable income is a strong combination for positive growth in the post-pandemic aviation industry.
In the context of Vietnam, which to date has managed to minimize outbreaks from occurring in the country, from around the middle of September 2020 airlines announced to fly again and increase the frequency of many domestic flights. Airlines also sought to restore some international commercial routes to meet the needs of passengers, contribute to connecting trade, and maintaining production and business activities.
However, despite domestic demand, true recovery and economic success can only occur when passengers can again travel internationally, both inbound and outbound. As such, the critical questions are when the recovery