VN Airlines aims for $1.8bil revenue

The national flag carrier Vietnam Airlines expects to see a total revenue of VND32 trillion (US$1.78 billion) this year, up 30 per cent against last year in the context of the global economic recovery.

To realise the turnover, the carrier estimates that it will have to transport more than 11 million passengers this year.

This year’s positive targets are based on its good performance last year which was in marked contrast to many airlines globally facing bankruptcy, losses and laying-off of staff.

The carrier notched up VND24.5 trillion ($1.36 billion) in turnover last year with the company netting a profit of VND150 billion ($8.3 million).

The results mainly stemmed from its focus on the domestic market.

It opened a series of new routes last year, including Ha Noi-Can Tho, Ha Noi-Quy Nhon, HCM City-Dong Hoi, Ha Noi-Tuy Hoa, and Ha Noi-Pleiku.

With such efforts, Vietnam Airlines transported about 9.3 million passengers last year, a 6.6 per cent increase from last year, with Vietnamese clients accounting for up to nearly 6.2 million, a year-on-year increase of 17.6 per cent.

It also handled around 131,220 tonnes of cargo, up 2.3 per cent from last year. Of the total, 87,000 tonnes of cargo was transported on domestic routes, a rise of nearly 13 per cent.

The carrier also reported a seat occupancy rate of roughly 74 per cent for both local and international flights.

To raise net profits, Vietnam Airlines implemented a wide range of solutions to cut fees, thus saving more than VND400 billion ($22.2 million) last year, by economising fuel and rescheduling flights, it said.

The airline took full advantage of the global economic crisis to negotiate with partners to buy and lease more new planes to improve its fleets and remodel infrastructure to capitalise on opportunities that have opened with the recovery of the local and international economy.

Besides success in the domestic market, Vietnam Airlines saw certain achievements overseas. The airline also co-operated with the Cambodia Government to jointly operate National Cambodia Angkor Air last July, as well opening the Ha Noi-Fukuoka route last October.

It also took over from the Japan Airlines the Ha Noi-Kansai route this week with five flights per week.

“In face of the challenges to the global airlines sector from the global economic crisis, after some new routes in 2009 with destinations to Quy Nhon, Quang Binh, Tuy Hoa, Pleiku and Fukoaka, Vietnam Airlines decided to debut the Ha Noi-Kansai route immediately after the end of the Japan Airlines service. This reflects the responsibility and role of the national carrier. We hope to make a contribution to trade, investment and tourism promotion between Japan and Viet Nam in general and Ha Noi and Kansai in particular,” said the carrier CEO Pham Ngoc Minh.

With the Lunar New Year nearing, the airline has mapped out plans to run an additional 850 flights between Ha Noi and HCM City, and HCM City and Da Nang to meet rising demand.

It will also increase more flights (using ATR72 planes) on the HCM City-Hue, HCM City-Ban Me Thuoc, and HCM City-Pleiku routes.

VietNamNet/Viet Nam News

Tags: Vietnam airlines, Vietnam aviation