Vietnamese carriers far from world’s cheapest, high fuel costs to blame
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None of Vietnam’s carriers made it to the top 50 list of cheapest airlines by average ticket price per kilometer, according to a 2018 report on global flight price by Melbourne-based transport search engine Rome2Rio.
The report analyzed about 1.5 million price points for economy-class airfares from Europe, Americas and Asia Pacific as displayed by Rome2Rio during this year’s first two months.
At the top of the list were Australia’s Tigerair Australia, Malaysia’s AirAsia X and Indonesia’s Indonesia AirAsia at $0.06, $0.07 and $0.08 per kilometer, respectively.
Meanwhile, Vietnamese carriers are falling behind, with Vietjet Air, Jetstar Pacific and Vietnam Airlines priced at $0.14, $0.15 and $0.30 per kilometer, respectively.
The report also shows that Vietnam is ranked 15th in the list of cheapest average airfare per kilometer ranked by country.
Vietnamese carriers’ higher-than-average airfares were due to high fuel costs, said an airline representative.
“Vietnam’s fuel costs are 20 to 30 percent higher than other countries’,” the representative said. This representative also noted that fuel costs represent the highest percentage in an airline’s total operational costs, at 30 to 40 percent.
Despite Vietnam’s status as a crude oil exporter, the country still heavily depends on importing refined oil from other countries.
“Vietnam will not be free of imports of refined fuels, although combined diesel and gasoline imports will halve from about 200,000 barrels per day in 2016,” said Suresh Sivanandam, analyst at energy consultancy Wood Mackenzie.
Questions & Answers
Q.Which specific Vietnamese carriers were mentioned as not being among the world's cheapest by average ticket price?
Which specific Vietnamese carriers were mentioned as not being among the world's cheapest by average ticket price?
The Vietnamese carriers mentioned in the report are Vietjet Air, Jetstar Pacific, and Vietnam Airlines. Their prices per kilometre were $0.14, $0.15, and $0.30 respectively, placing them outside the top 50 cheapest airlines.
Q.What is the primary reason cited for Vietnamese carriers having higher-than-average airfares?
What is the primary reason cited for Vietnamese carriers having higher-than-average airfares?
An airline representative stated that high fuel costs are the main reason. They noted that Vietnam's fuel costs are 20 to 30 percent higher than in other countries, significantly impacting operational costs.
Q.How much do fuel costs typically represent in an airline's total operational expenses?
How much do fuel costs typically represent in an airline's total operational expenses?
An airline representative noted that fuel costs represent the highest percentage in an airline’s total operational costs. They typically account for 30 to 40 percent of these expenses.
Q.Why does Vietnam still depend on importing refined oil, despite being a crude oil exporter?
Why does Vietnam still depend on importing refined oil, despite being a crude oil exporter?
The article states that despite Vietnam's status as a crude oil exporter, the country still heavily depends on importing refined oil from other countries. No further explanation for this dependence is provided.
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