U.S. investors look at Danang Airport

Giao Thong Van Tai newspaper, under the Ministry of Transport, said Cedona and U.S. group ADC & HAS are looking to engage airport projects in central Vietnam, including Danang International Airport. Danang authorities have pledged favorable conditions for investors.

The ministry, the Ministry of Planning and Investment and the Civil Aviation Administration of Vietnam (CAAV) have thrown support behind Cedona’s plan to survey the need for improving infrastructure development at airports in central Vietnam in the hope that first-class facilities will help boost fast growth in tourism and other sectors in the region.

At a recent meeting with Danang authorities, Cedona spoke of the possibility of future flights from the U.S. to Danang Airport, which is Vietnam’s third busiest international airport after Tan Son Nhat in HCMC and Noi Bai in Hanoi.

Middle Airports Corp. looks set to put into use a new modern terminal at Danang International Airport by the year-end, which should increase the number of international flights in addition to domestic services currently offered by Vietnam Airlines and Jetstar Pacific.

The new US$74 million terminal was designed to handle six million passengers and 400,000-1,000,000 tons of cargo every year. SilkAir now services weekly flights between Danang and Singapore, and Asia’s leading low-cost carrier AirAsia is flying directly between Kuala Lumpur and the central coastal city from mid-December four days a week.

Growing tourism in central Vietnam is capturing the attention of not only international airlines but also foreign companies keen to invest in airport infrastructure development. Earlier, CAAV confirmed to the Daily that a number of foreign investors wanted to develop certain airports in central Vietnam.

In mid-2011, a venture involving Airis International suggested a plan to build a terminal for low-cost carriers and auxiliary facilities in Cam Ranh Airport, which is over 30 kilometers from Nha Trang City. The plan, supported by Khanh Hoa Province and the CAAV, envisages a wind or solar energy plant to power operations of the terminal and nearby facilities in the international airport of Khanh Hoa.

Cam Ranh is the second busiest airport in central Vietnam after Danang Airport and Middle Airports Corp. said the airport had recorded annual double-digit growth over the past few years. In late 2009, a new two-storey, VND200 billion terminal was put into operation at Cam Ranh Airport to enhance its handling capacity to 800 passengers at peak hours.

Cam Ranh Airport will handle 5.5 million passengers and 100,000 tons of cargo a year by 2020, according to a master development plan. The airport is expected to receive eight million passengers and 200,000 tons of cargo a year by 2030, with over VND10.5 trillion investment capital planned for expansion.