Vietnam Airlines: Taking Initiative in Business Activities

Vietnam Airlines (VNA) has adopted many measures to respond to the economic crisis, complete airborne transportation plans, focus on the domestic market and regulate international routes to balance general business activities.

VNA’s total revenue was estimated at VND17.286 billion, or 73 per cent of the annual plan; the profit before tax was around VND65.4 billion and its tax payments to the State Budget were protected at VND20.8 billion.

In addition to assiduous and considerate management and control over business plans, especially expenses, VNA has also exercised fuel-saving programmes, made adjustments to air routes, negotiated with partners to extend the time for new aircraft delivery, and other activities to cut costs. Furthermore, VNA has carried out many large-scaled projects, replaced ATR72 aircraft fleets, negotiated and implemented airplane leasing and purchase plans for the future, and acted upon infrastructure projects (Hangar A75, Hangar control tower No. 2 – A76, etc) to have a new technical and operating infrastructure system by the end of 2010 and at the start of 2011. Additionally, VNA also coordinated with the Cambodian Government to set up and operate Cambodia Angkor Air, a national carrier in Cambodia, from July 2009.

Amid the global economic slump which caused adverse impacts on the aviation industry, many airlines suffered losses, reduced air routes and cut staff. Since the start of 2009, VNA not only completed its tasks to ensure profit-making operations, stabilise incomes for its staff and develop aircraft fleet but also opened new domestic air routes such as Hanoi – Can Tho (January 2009), Hanoi – Quy Nhon (January 20909 and Ho Chi Minh City – Dong Hoi (July 2009) and three routes in October 2009, namely Hanoi – Fukuoka, Japan (October 10), Hanoi – Tuy Hoa (on October 24 and Hanoi – Pleiku (October 27).

Both domestic routes opened in October 2009 (Hanoi – Tuy Hoa and Hanoi – Pleiku) use 79-seat Fokker 70 airplanes. At the same time, Vietnam Airlines will continue the Hanoi – Pleiku route and connect with Da Nang with a total flight time of 2 hours 5 minutes, 3 days per week. Mr Pham Ngoc Minh, General Director of Vietnam Airlines, said: “When the aviation industry is facing numerous difficulties, all members of the corporation hope the opening of direct flights between the capital city of Hanoi with Tuy Hoa and Pleiku cities in 2009 will be a meaningful contribution from Vietnam Airlines to the cause of building and developing the economy of the country in general and of Phu Yen and Gia Lai provinces in particular.” The two new routes bring the total number of domestic flight routes operated by Vietnam Airlines to 31, based on three major cities of Hanoi, Da Nang and Ho Chi Minh City which connect with 20 other provinces and cities in the country.

From October 26, 2009, VNA began with the winter flight schedule. Accordingly, during the peak time, which falls on Tet, or New Year, the largest public holiday in Vietnam, the carrier plans to add 20 per cent of flights, mainly on Hanoi – HCM City and HCM City – Da Nang. The winter international flight schedule will be also adjusted from seven to eight flights a week for the route of Hanoi/HCM City – Paris (France); from five to six flights a week for the route of Hanoi/HCM City – Frankfurt (Germany); from eight 8 to 10 flights a week for the route of Hanoi/HCM City – Pusan (South Korea); and from 7 to 14 flights a week for the route of HCM City – Bangkok (Thailand). And, to better serve the travel demand during Tet, Vietnam Airlines will draw up concrete flight plans at the end of November 2009.

Posted by VBN on Dec 7 2009. Filed under Aviation, Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry