- CAPA Analysis
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- IATA Code
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- 200 Nguyen Son Str.,
Long Bien Dist.,
Ha Noi city,
- Main hub
- Ho Chi Minh City Tan Son Nhat Airport
- Business model
- Full Service Carrier
- Domestic | International
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- Part of Vietnam Airlines Corporation
- Joined Alliance
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- Air Europa Lineas Aereas
Cambodia Angkor Air
China Eastern Airlines
China Southern Airlines
CSA Czech Airlines
Delta Air Lines
KLM Royal Dutch Airlines
Based in Hanoi, Vietnam Airlines is the national airline of Vietnam and wholly-owned by the Vietnamese government. Utilising a fleet of narrow and wide-body Airbus, Boeing, and ATR aircraft, Vietnam Airlines operates an extensive network of domestic and regional services within Southeast and North Asia and international services to Europe and Australia. Vietnam Airlines joined the SkyTeam alliance in 2010.
Location of Vietnam Airlines main hub (Ho Chi Minh City Tan Son Nhat Airport)
812 total articles
43 total articles
Cambodia aviation Part 2: Expansion at start-ups Bassaka Air, Bayon Airlines to drive growth in 2015
Cambodia’s dynamic airline sector should experience rapid growth in 2015 as start-ups Bassaka Air and Cambodia Bayon Airlines launch international services. Both airlines have so far been limited to domestic services but are aiming to launch several routes to China.
Bassaka and Bayon became the third and fourth Cambodian carriers in late 2014, joining Cambodia Angkor Air and the newly rebranded Sky Angkor Airlines. All four airlines are banking on China for expansion as other markets are intensely competitive and do not have the same growth opportunities.
There is huge potential for growth in the Cambodian market, which has traditionally been dominated by foreign carriers. But Cambodia may not be able to support four local carriers over the long term. A third start-up has already suspended operations and other potential start-ups seem to be reassessing their plans.
VietJet Air is planning to focus on domestic expansion and growing its North Asian network in 2015 as Vietnam’s leading LCC again aims to double in size. VietJet is seeking to grow further its share of the Vietnamese domestic market, which has already surpassed 30%, while launching services to China, Hong Kong and Japan.
VietJet Air roughly doubled its fleet and traffic in 2014, ending the year with six million passengers and almost 20 aircraft. The airline aims to again double passenger numbers in 2015 as the fleet is expanded by about another 10 aircraft.
But VietJet has made a major and sensible strategic adjustment in deciding to focus primarily on the domestic market. Plans for acquiring widebody aircraft and entering the long-haul sector have been delayed for at least three years. Instead VietJet is considering regional aircraft, which would be used to further bolster its domestic position.
The very end of 2014 was one of the most important parts of the year for Gulf airlines as they received new aircraft: the world's first A350 for Qatar Airways, which took its first A380 a few months prior, while Etihad received its first A380 and 787-9. These are more than just new toys: they bring improvements both operationally and customer-facing. The Gulf has been building up high-end premium products and the new aircraft cement the region's position of offering some of the best, if not the best, products.
Gulf airlines once sold on the basis of price and often convenience. As they expand their networks and build frequencies they are now moving into higher-end premium cabins, strengthening loyalty programmes, constructing new terminals and airports and have hubs with an increasing number of local activities for a stopover. Meanwhile in the old world airports are becoming more constrained, politicians remain ineffective and uninterested and legacy airlines are slow to invest while facing unpredictability from staff strikes. This brings a change to Gulf carriers that is actively welcomed by passengers; but protectionist rhetoric and use of regulatory constraints is increasing.
VietJet Air and Jetstar Pacific are planning more international expansion in 2015 as both Vietnamese LCCs continue to rapidly expand their fleets. VietJet is looking at Indonesia, Malaysia, Japan and Russia while Jetstar Pacific will focus on North Asia.
VietJet has expanded rapidly since its Dec-2011 launch and is now about double the size of Jetstar Pacific. VietJet is poised to complete two major milestones in Nov-2014 as the carrier takes the first of at least 63 A320 family aircraft that were ordered in early 2014 and launches its first overseas joint venture, Thai VietJet Air.
Jetstar Pacific meanwhile is accelerating the pace of its expansion as it adds three A320s in 4Q2014 and at least two more aircraft in 2015. Jetstar Pacific also completed a milestone on 27-Oct-2014, when it launched its first scheduled international route – Ho Chi Minh to Singapore.
VietJet Air is planning further expansion of its international network with Cambodia and Russia slated to become its fourth and fifth overseas markets. Vietnam’s leading low-cost carrier is also looking at launching a connection product which will enable it to compete in the broader Russia-Southeast Asia and North Asia-Southeast Asia markets.
Russia will initially be served using VietJet’s rapidly growing A320 fleet to access the Russian Far East city of Vladivostok. But VietJet has big ambitions for the Russian market using its anticipated future fleet of A330s.
The LCC sees huge potential in Russia as it is a large and fast growing source market for Vietnam’s emerging tourism industry. VietJet’s parent company also has Russian roots, which should make it easier from an access and local sales perspective.
Vietnam’s two low-cost carriers, Jetstar Pacific and VietJet Air, are slowly starting to penetrate Vietnam’s international market. On 24-Jul-2014 VietJet launched Seoul as its third international destination while Jetstar Pacific is launching services in Oct-2014 to Singapore, which will become its second international destination.
VietJet and Jetstar Pacific have until now focused on the domestic market, driving up Vietnam’s domestic LCC penetration rate to nearly 40%. Vietnam’s international market in comparison has an LCC penetration rate of only about 14%, with foreign LCCs accounting for almost all of the capacity. This contrasts with the overall Southeast Asian LCC penetration level of over 40% including about 60% on routes within the region.
VietJet’s new Hanoi-Seoul service is only the second LCC route linking Vietnam with North Asia. Ho Chi Minh-Singapore is Vietnam’s largest international route and the entrance of Jetstar Pacific indicates a potential strategic shift at parent Vietnam Airlines, which until now has been reluctant to use its LCC brand on international routes it already serves with its full-service product.