- CAPA Analysis
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- Airline Status
- IATA Code
- ICAO Code
- Corporate Address
- 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
- Airline Group
- Part of Vietnam Airlines Corporation
- Frequent Flyer Programme
- Joined Alliance
- Association Membership
- Codeshare Partners
- Air Europa Lineas Aereas
Cambodia Angkor Air
China Eastern Airlines
China Southern Airlines
CSA Czech Airlines
Delta Air Lines
KLM Royal Dutch Airlines
Vietnam Air Services (VASCO)
Based in Hanoi, Vietnam Airlines is the national airline of Vietnam and majority-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. On 04-Jul-2016, ANA Holing Inc completed the purchase of an 8.771% stake, allowing ANA to become a strategic shareholder. Vietnam Airlines stated it will continue to divest the state's shareholdings to 75%, with a further reduction to 65% under the company’s re-structure plan.
Location of Vietnam Airlines main hub (Ho Chi Minh City Tan Son Nhat Airport)
1,068 total articles
57 total articles
Airline groups are now common, if not ubiquitous in Asia today. Their evolution, still often at experimental stage, involves addressing issues like multiple brand management, connectivity, coordination and associated issues. They are not easy to manage, but appear to be generating some success as established full service airlines adapt to new marketplace conditions.
Part 1 of this analysis of northeast Asian airline groups, with their "houses of brands", covered Mainland China and Hong Kong.
Part 2 reviews the courses being followed by airlines in Taiwan, Japan and Korea. Each of these markets has its own characteristics, influenced by domestic features, by government peculiarities - notably in Japan - and by the beliefs of the airline managements themselves.
Most Asian full service airlines have responded to LCC competition by establishing groups, in some ways similar to Europe's, but usually with greater differentiation in role and establishment. As a result they have for some time been houses of brands. There was typically limited consolidation in these sprawling mansions; there was also little coordination between the airlines in the group. This has led to redundancy, missed opportunities and confusing marketing. But the Asian market is dynamic, competitive pressures are increasing and constant adaptation is necessary. With experience now of these conditions more strategic thinking is emerging, along with the management resolve to shed complacency.
Brand consolidation is still some time off. Taiwan’s EVA Air and China Airlines are mulling consolidation with their respective regional arms UNI Air and Mandarin Airlines. But on the whole, the number of brands in Asia is growing, especially in mainland China. The initial changes at Asian airline groups include better coordination of group airlines.
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.