Vietnam Airlines reaching new targets

Vietnam Airlines Corporation has confirmed its leadership in the Vietnamese aviation market for years. In the context of the global economic crisis, the national flag carrier’s growth remained stable, proven by opening of new routes and modernisation of its aircraft fleet. VNA targets to become the Number 2 airline in Southeast Asia by 2020.

Reaching out

The aviation industry is among the most seriously affected by the global economic crisis. Many airlines had to reduce flights and cut staffs to survive. In such a difficult context, Vietnam Airlines found out its own direction to keep the growth momentum and improve the service quality. A series of domestic and international air routes were opened in the very “stormy years.” Since the start of this year, eight new routes were opened, including Ho Chi Minh City – Can Tho – Phu Quoc, Hanoi – Vinh, Hanoi – Chu Lai, Ho Chi Minh City – Da Nang – Da Lat, Hanoi – Osaka, Hanoi – Yangon, Ho Chi Minh City – Shanghai, and Hanoi and Shanghai. The route incensement in the past time is a key factor for the Vietnam Airlines’ official joining to the global airline alliance, SkyTeam.

To meet development requirements, Vietnam Airlines has invested in modernising its aircraft fleet in the context of the global economic crisis. Two years ago, when a series of airlines had to cancel or reduce aircraft orders, Vietnam Airlines continued accelerating its aircraft modernisation plan. General Director Pham Ngoc Minh said that was a good time to modernise airplanes to edge up competition. The aircraft fleet of Vietnam Airlines increased from 33 units in 2003 to 70 units in 2010, mainly new vehicles which need less fuel and maintenance expense. The carrier replaced old-generation ATR72-200 and A320 airplanes with new generation ATR72-500 and A321-200. By May 2010, the corporation replaced all ATR72 aircraft.

Toward the Number 2

With its achievements, Vietnam Airlines has set a goal to become the Number 3 airline in Southeast Asia by 2015 and the Number 2 by 2020. To accomplish this goal, the airline will continue with its fleet expansion plan to boost up the competitiveness and economic efficiency. It expects to have 110 aircrafts by 2015 and 160 units by 2020. From 2012, it will conduct research and development activities on specialised cargo transportation. Domestic routes, with Hanoi and Ho Chi Minh City being important hubs, have been added flights and improved service quality. Domestic and Greater Mekong Subregion routes will be expanded and strengthened. In the Mekong Delta subregion, Vietnam Airlines will maintain its leading position and compete with airlines in Bangkok, Thailand. Air routes to Southeast Asia, South Asia, Northeast Asia and South Pacific – big sources of income for the airline – will continue to be developed. According to the plan, on the Northeast Asia route, Vietnam Airlines will use wide-body aircrafts and increase flights to boost competitiveness. In the coming time, Vietnam Airlines will focus on upgrading flights to Japan, South Korea and China to meet the demand of passengers. Between 2011 and 2013, it will open more routes to Indonesia and the Philippines, and between 2013 and 2016, it will consider opening flights to India. It will also take Trans-Pacific routes to the Americas and Africa into consideration.

The targets of Vietnam Airlines are within reach because the Asia – Pacific aviation market has the highest growth rate in the world (7 percent compared with 5 percent average worldwide). Vietnam has been widely known for being a safe and ideal destination for international travellers. Its tourism industry is also thriving thanks to strong investments. International visitor arrivals to Vietnam are estimated to raise 10 – 12 percent a year in the 2010-2015 period while the number of domestic tourists is expected to climb 12 – 15 percent a year. Vietnam also gains a major advantage after it becomes the 10th official member of the global airline alliance, SkyTeam. This alliance has reached 884 destinations in 169 countries. This is definitely an advantage for Vietnam Airlines to better serve its passengers in the current context of stronger competition. – VCCI

Tags: Vietnam airlines, Vietnam aviation, Vietnam aviation industry, Vietnam aviation market

Posted by VBN on Aug 29 2010. 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