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- 200 Nguyen Son Str.,
Long Bien Dist.,
Ha Noi city,
- Main hub
- Ho Chi Minh City Tan Son Nhat Airport
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- Domestic | International
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- Part of Vietnam Airlines Corporation
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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. Vietnam Airlines is undergoing a privatisation process, with the carrier aiming to secure foreign investors by early 2016.
Location of Vietnam Airlines main hub (Ho Chi Minh City Tan Son Nhat Airport)
1,016 total articles
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Vietnam’s Jetstar Pacific is planning more rapid expansion in 2016 as it aims to grow its fleet by 50%, from 12 to 18 aircraft. Jetstar Pacific grew at a rate of nearly 40% in 2015, marking its biggest expansion since it launched in 2008.
The Vietnam Airlines-Qantas joint venture continues to expand domestically but will focus more on the international market in 2016, with a combination of new scheduled routes and charters. There are particularly promising opportunities for Jetstar Pacific in international markets where the Jetstar Group already has a strong presence, such as Bali and Japan.
Further domestic expansion is strategically necessary as the Vietnam Airlines Group responds to the rapid rise of VietJet. Domestic expansion may not be profitable given the current competitive environment, but Jetstar Pacific has an opportunity to improve on weak domestic yields by focusing more on interline and codeshare traffic.
Luang Prabang in Laos is emerging as one of Southeast Asia’s fastest growing tourist destinations, driving rapid passenger growth with services by at least four new airlines in 2016. Thai AirAsia will become the first LCC to serve Luang Prabang Airport in Mar-2016 as it launches flights from Bangkok, ending a long battle to gain access to the previously restricted Luang Prabang market.
Malaysia AirAsia and HK Express are also planning to launch service to Luang Prabang, while Singapore Airlines regional subsidiary SilkAir is planning a new route from Singapore on a circular routing that also includes the capital Vientiane. The new SilkAir route is strategically important for the SIA Group as Laos is the only ASEAN country currently not served by any SIA Group airline.
Vientiane had approximately twice the traffic of Luang Prabang in 2015, but Luang Prabang is the bigger tourist attraction and has tremendous growth potential. Luang Prabang completed an expansion project in 2012 which enabled the airport to accommodate jets, and the Lao government is now planning to expand the tiny international passenger terminal to meet surging demand.
Cambodia continues to experience rapid traffic growth driven by surging demand from China. Passenger traffic in Cambodia has grown at a rate exceeding 10% for six consecutive years, including 13% in 2015.
China has been the biggest driver of growth, with Chinese visitor numbers increasing by at least 20% for six consecutive years. Capacity on the traditional route to Bangkok, the main gateway for long haul passengers heading to or from Cambodia, has also grown over the last year.
However, the rate of passenger growth in Cambodia slowed significantly in 2015, particularly at Siem Reap. Cambodia is still one of the hottest markets in Southeast Asia but neighbouring Vietnam is now expanding faster. Growth is expected to slow further in 2016, and will likely fail to reach double digits for the first time since 2009.
Vietnam Airlines 2016 outlook: Strategic partnership with ANA supports IPO and regional growth plans
Vietnam Airlines had a momentous 2015 as it took delivery of its first A350 and 787, enabling product and efficiency improvements. 2016 will be another milestone year for Vietnam Airlines as it completes a stock exchange listing and implements a new strategic partnership with All Nippon Airways (ANA), which is taking an 8.8% stake in the Vietnamese flag carrier.
Vietnam Airlines recorded 12% passenger growth in 2015, and is expected to expand at a similar rate in 2016 but most of its growth is focused on the domestic and regional international market, as the new A350-900s and 787-9 fleets are being used primarily to replace older generation widebody aircraft.
While Vietnam has long term ambitions to grow its long haul network the new partnership with ANA will provide opportunities for offline expansion. The new partnership will also aid Vietnam Airlines’ ongoing efforts to raise standards to international levels.
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 Vietnam’s domestic market, and will likely surpass Vietnam Airlines in 2016 as Vietnam’s largest domestic carrier.
International expansion has been modest in VietJet’s 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.
Vietnam’s two low cost carriers, Jetstar Pacific and VietJet Air, were among the fastest growing Southeast Asian airlines in 2015. Both LCCs have responded to burgeoning demand in Vietnam, which has become the fastest growing domestic market in Asia.
VietJet seat capacity is up 74% year over year, making it the second fastest growing Southeast Asian airline in 2015 after Thai Lion Air. VietJet is now the 11th largest Southeast Asian airline based on seat capacity, having risen five places in 2015.
Jetstar Pacific seat capacity is up 52% year over year, making it the third fastest growing airline in Southeast Asia. Jetstar Pacific added 20 routes in 2015, growing its network to 34 routes, while VietJet added 10 for a total of 35 routes.