Professional Documents
Culture Documents
The history of Vietnam Airlines dates back to January 1956 , when the Vietnam Civil
Aviation Department was established by the Government, marking the birth of the civil aviation
industry in Vietnam. At that time, the fleet was small with only five aircraft of IL-14, AN-2,
Aero-45 which started to serve domestic flights in September 1956.
The new stage with the operation
April 1993, Vietnam Airlines was officially established as the countrys national flag
carrier. On the 27th May 1995, Vietnam Airlines Corporation was born with the gathering of 20
aviation enterprises and the airline itself as the core business.
In June 2010, Vietnam Airlines joined SkyTeam, the worlds second largest global airline
alliance, affirming the carriers new position on the global aviation map as the strategic partner
of the alliance in Southeast Asia region as well as its international standard services.
VietNam Airlines also shows the ambition to become a leading brand by signing an
agreement with Vietnam's Exim Bank for a loan worth US$100 million, which the carrier will
use to finance the acquisition of four Airbus A321s; a further US$100 million was loaned in
April 2013 to finance the purchase of eight Boeing 787s. In a deal valued at US$1.7 billion,
Vietnam Airlines signed a contract with General Electric in October 2013 for 40 engines to
power the Boeing 787 aircraft the airline has on order.
In the future
Positioning its internationally recognized brand as a young and modern carrier, Vietnam
Airlines excelled further when signing large purchase orders of worlds most modern,
environment-friendly aircraft, such as Boeing B787 and Airbus A350-900. The airline is
expected to reach 101 and 150 modern aircraft in 2015 and 2020, respectively, making solid
steps integrating into the global aviation industry as one of leading regional carrier, which is
fully ingrained with Vietnamese traditional culture. Vietnam Airlines want to become one of the
biggest full service carriers in South East Asia and to expand the influence in Viet Nam with the
opening of new routes to compete with other in Viet Nam market.
PRINCIPAL
COMPANY
TYPE
ACTIVITIE
S
Vietnam Air
Subsidiar
Passenger
transport
Airlines
Subsidiar
Aircraft
Engineering
maintenance
Service
Company
GROUP'S
INCORPORATE
EQUITY
D IN
SHAREHOLDIN
G
Vietnam
100%
Vietnam
100%
Catering
Vietnam
100%
Catering
Vietnam
100%
Vietnam
70%
Cambodia
49%
Vietnam
20%
Vietnam
Company
Vietnam
Airlines
Caterers
Noibai
Catering
Services
Subsidiar
y
Subsidiar
y
Jetstar Pacific
Subsidiar
Passenger
Airlines
transport
Cambodia
Joint
Passenger
Angkor Air
venture
transport
Vietnam Air
Joint
Aircraft leasing
Leasing
PRINCIPAL
COMPANY
TYPE
ACTIVITIE
S
Company
GROUP'S
INCORPORATE
EQUITY
D IN
SHAREHOLDIN
G
venture
Vietnam Airlines has a flying network within East Asia, Southeast Asia, Europe and Oceania.
With about 300 daily flights, the airline flies to 21 destinations domestically, and to 28
internationally.
Vietnam Airlines has join the Sky team in 2010 which help them have the relationship with
Alitalia (SkyTeam)
VASCO
Lao Airlines
Philippine Airlines
Etihad Airways
El Al Israel Airlines
Passengers
Routes
Notes
2
9
ATR 72500
45
23
1
Short-haul
16
66
66
international and
domestic
2
5
Boeing
777-
200ER
5
4
15
787-9
7
3
Boeing
54
22
2 35 21
8
8
Total
99
Long-haul
309
international and
AVOD in-flight
entertainment.
To be phased out by
2018.
325
274
2 28
307
domestic
29
311
Long-haul
international
Boeing plus 11 to be
acquired through leasing
companies
25
https://www.vietnamairlines.com/vi/about-us/our-story/history in 2015
Beside the quality of Fleet, VNA also offer service to their consumer to serve them with
the highest effort for the satisfaction.
Business class. Business class is the highest of three cabin classes offered by the airline.
As is the case with business class cabins in most airlines, the amenities offered in this class are
substantially different from economy class, and more services and products are available. On
Boeing 777s, business class seats have a 160 cm (62 in) of leg room, and are able to recline with
a pitch of 157, depending on aircraft. Laid out in a 232 configuration, each seat is equipped
with lumbar support and a 10.4 in (26 cm) personal touch screen, capable of delivering AVOD.
hot meals are offered on flights lasting longer than two hours
Deluxe Economy. Deluxe Economy class, Vietnam Airlines' equivalent of premium
economy, has a wider seat width and legroom compared to Economy with 3638 in (9197 cm)
of seat pitch and 7 inches of recline, and is laid out 333. This class is offered only on selected
Boeing 777 flights. On flights over 90 minutes, snacks are served; on two-hour plus flights, as in
business class, hot meals are served.
Economy. Economy class is available on all flights operated by Vietnam Airlines. Seats
in this cabin feature seats ranging from 51 cm (20 in) (Airbus A330) to 53 cm (20.9 in) (Boeing
777) in width. Seat pitch on this cabin class is 3132 in (7981 cm), while seat recline ranges
from 6 to 13(5-6 inches). Like Deluxe Economy, snacks are served on flights over 90 minutes,
with hot meals available on flights that are two hours or more.
Vietnam Airlines records 12% passenger growth in 2015
Vietnam Airlines carried 17.6 million passengers in 2015, making it the third largest full
service carrier in Southeast Asia after Garuda Indonesia and Singapore Airlines.
Passenger traffic was up almost 12% compared with 2014, and has nearly doubled since 2008.
Vietnam Airlines annual passenger traffic and year over year growth: 2008 to 2015
Vietnam Airlines and has taken over several secondary domestic routes from its full service
parent, while adding capacity on trunk routes where there is a significant presence from both
Vietnam Airlines Group brands.
Market Share and Competitors
For the long in Vietnam Airlines is the dominant carrier in Airline market of Viet Nam
base on the government help and the reputation of the firm that have built up for a long time.
From 2010 up to now, with the arrival of new carrier to Viet Nam market that cause a serious
damage to Viet Nam Airlines. The new competitors of Viet Nam Airline appear with the diffreent
startegy and different target costumer when comparing with Vietnam Airlines, which cause the
loss in their market share.
For 2015 and beginning of 2016 VietNam Airlines account for about 44% of domestic
market share, 41% belong to Vietjet Air and the 15% is belong to Jetstar and Mekong Air. We
can see clearly that Vietjet air now become the biggest competitor to Vietnam Airlines, Vietjet
just appear in 2010 and growth fast to compete with Vietnam Airlnes in domestic market. For the
international market Vietnam Airline hold the majority of 70% of market share and their 1/3 of
income come from the international market.
VietJet Air
With an IPO expected in 1H2016, Vietnamese privately owned low cost carrier VietJet
Air is planning more rapid expansion for 2016. This will result in further domestic market share
gains and a larger international network. VietJet has quickly captured a 40% share of Vietnams
domestic market, and will likely surpass Vietnam Airlines in 2016 as Vietnams largest domestic
carrier.
International expansion has been modest in VietJets initial four years, as the LCC has
recognised that there are bigger and less risky opportunities domestically. Nevertheless, VietJet
will continue to build up its international operation gradually in 2016, including the Feb-2016
launch of Hanoi-Taipei, which will become its eighth scheduled international route.
Faster international expansion is expected in the medium to long term, possibly using
widebody aircraft, as the domestic market will eventually become saturated. A new reservation
system that VietJet plans to decide on in 2016 will enable the LCC to start pursuing transit
traffic, providing an important new source of international traffic as VietJet steps up marketing
activities overseas.
Challenge
Although Viet Nam Airline achieve large revenue and profits in 2015 there are challeges
for Viet Nam Airline. In domestic market, VietJet could overtake Vietnam Airlines as Vietnams
largest domestic carrier in Mar-2016 and expand to international market.
As CAPA outlined in a 2-Jan-2016 report on the overall Vietnamese market, VietJets total seat
capacity is currently up 74% year over year to about 261,000 weekly seats. This includes an 82%
increase in the domestic market to about 242,000 weekly seats, and a 30% increase in the
international market to about 19,000 weekly seats. Only about 7% of VietJets seat capacity is
currently allocated to the international market.
VietJet is planning further domestic expansion in the coming months, which will see it
surpass Vietnam Airlines as the largest domestic carrier. Based on forward schedules from OAG,
VietJets domestic capacity will reach almost 259,000 weekly seats in Mar-2016, which
represents a 7% increase compared to current levels, and a 73% increase compared to Mar-2015
(therefore keeping up its current very high year over year expansion rate).
Based on forward schedules currently on file with OAG, VietJet will have more domestic
capacity in Mar-2016 than Vietnam Airlines, for the first time in its history. (Vietnam Airlines
could still potentially add capacity to its Mar-2016 schedule, as Vietnamese carriers often make
last second adjustments.)
Note: VietJet launched in Dec-2011 but capacity data is only available from May-2012
Source: CAPA Centre for Aviation & OAG
Based on the current schedule for Mar-2016, VietJet will have about a 43% share of domestic
seat capacity compared with 42% for Vietnam Airlines, and 15% for Vietnam Airlines LCC
subsidiary Jetstar Pacific. Currently VietJet has about a 40% share compared to 45% for Vietnam
Airlines and 15% for Jetstar Pacific.
1.
Nguyen, Binh (25 June 2010). "Vietnam Airlines becomes limited liability company".
The Saigon Times Daily. Archived from the original on 22 May 2012. Retrieved 22
May2012. In its Decision 952/QD-TTg dated 23 June 2010, the Government says it still
owns Vietnam Airlines Company Limited (Vietnam Airlines), which is headquartered at
200 Nguyen Son Street in Long Bien District, Hanoi City.
2.
"Profile on Vietnam Airlines". Centre for Aviation. Archived from the original on 2
October 2012. Retrieved 2 October 2012.
3. "Vietnam Airlines". Centre for Aviation. Archived from the original on 17 July 2012.
Retrieved 17 July 2012.
4. "Our Background". Vietnam Airlines. Archived from the original on 6/2016
5. Finacial report of Vietnam Airlines from Vietstock