The press agency Reuters reports that The Vietnamese authorities have asked the national airline industry to prepare for possible flight reductions from April onwards.
This unprecedented situation is the result of restrictions on air fuel exports now imposed by China and Thailand because of the conflict in Iran. Both countries are now giving priority to supplying the domestic market in the face of possible shortages. China is no longer re-exporting oil, just like Thailand, which nevertheless continues to supply Laos and Myanmar (Burma).
Unfortunately, Vietnam depends on aviation paraffin for more than two-thirds of its needs. China and Thailand alone supply around 60 % of these volumes, according to documents from Vietnam's aviation regulator and fuel importers consulted by Reuters. These same documents also note a drop in supplies from Singapore.
Kerosene shortage in April?
" Vietnamese airlines risk running out of jet fuel from the beginning of April "The Civil Aviation Authority of Vietnam (CAAV) warned the Ministry of Transport in a report dated 9 March.
A risk confirmed by the two main fuel importers, Petrolimex and Skypec. The two Vietnamese companies have told the regulator that they can only guarantee deliveries of jet fuel until the end of March.
The CAAV is therefore recommending that the 6 local airlines re-evaluate their frequencies, particularly on domestic routes where the number of flights is very high. The civil aviation authority has also asked airports to provide additional parking capacity when certain aircraft are grounded.
The Vietnamese authorities have taken diplomatic steps to try and resolve the situation, according to Reuters. Vietnam, the third-largest buyer of Chinese jet fuel last year after Australia and Japan, has raised the issue with Beijing and Bangkok.
The Vietnamese aviation regulator has also indicated that it is difficult to find new suppliers, as the national refineries currently favour other petroleum products, which limits the production of aviation fuel. Even if supplies stabilise, rising fuel prices threaten the profitability of some routes.
A plethora of airlines
The Vietnamese domestic market is served by six airlines: Vietnam AirlinesVietJet Air, Bamboo AirwaysVASCO, Pacific Airways and Sun PhuQuoc Airways. The latter, the most recent entrant to the Vietnamese market, has already indicated that it may adjust its flight schedules over the next one to three months.
The six airlines offer up to 800 daily flights on domestic routes from around thirty domestic airports. The Hanoi-Ho Chi Minh City route alone has more than 30 flights a day operated by various airlines.
