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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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- 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. Using a fleet of narrow and wide-body Airbus, Boeing, ATR and Fokker 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)
637 total articles
36 total articles
Jetstar Pacific is resuming expansion as the Vietnamese low-cost carrier enters the international market and grows its A320 fleet. The expansion will see the low profile Jetstar Group affiliate/Vietnam Airlines subsidiary raise its profile and take on its younger and now bigger rival, VietJet Air.
Jetstar Pacific launched services to Macau on 28-Mar-2014, the carrier’s first international destination since it adopted the Jetstar brand in 2008. Jetstar Pacific has largely languished over the last six years, growing its fleet by a paltry one aircraft as other LCCs in the region – including VietJet – have raced past.
The planned expansion of its network and fleet, starting with Macau and the delivery of a sixth A320, will usher in a new era for Jetstar Pacific. There are still opportunities for Jetstar Pacific as Vietnam remains a relatively under-penetrated market. But Jetstar Pacific faces challenges and a potential risk that its expansion could become a case of too little too late.
Vietnam Airlines plans to resume long-haul expansion in 2015, ending a hiatus of over two years caused by delays in the 787 and A350 programmes. Vietnam Airlines now expects to begin taking 787-9s and A350-900s in 2Q2015 with eight deliveries slated for 2015 including four growth aircraft.
The government-owned flag carrier has been focusing in recent years on short-haul and medium-haul expansion using its A321 fleet. Long-haul expansion is now becoming critical for Vietnam Airlines to raise its global profile and head off Vietnam’s second largest carrier VietJet Air, a fast-expanding LCC which is also now planning to expand internationally into long-haul markets.
Intensifying competition clouds Vietnam Airlines’ prospects as it plans for an initial public offering (IPO) in mid-2014. The Vietnamese market has huge growth potential but with LCCs and foreign full service carriers becoming more intrusive, Vietnam Airlines has challenges to overcome as it starts to accelerate expansion.
VietJet Air plans to pursue significant expansion of its international network over the next few years as the carrier rapidly expands its A320 fleet and looks to launch a widebody operation.
Singapore will in May-2014 become VietJet’s second scheduled international destination after Bangkok. Several more international destinations in Southeast and North Asia are expected to be added by the end of 2014. The airline also aims to begin serving Australia, Europe and the Americas within three years using a new fleet of widebody aircraft.
In addition VietJet is pursuing ambitious growth outside its home market: its first overseas joint venture, Thai VietJet, is preparing to launch services in Sep-2014. Thai VietJet will initially operate three A320s while in the Vietnamese market VietJet will add seven A320s in 2014 for a total of 17 aircraft. Both airlines will use the additional capacity to launch a relatively even mix of new domestic and international routes.
Garuda Indonesia formally enters SkyTeam on 5-Mar-2014, becoming the fifth flag carrier in the fast-growing Southeast Asian region to join a global alliance. With Garuda, SkyTeam surpasses Star as the largest alliance in Southeast Asia by seat capacity with about a 16% share compared to 14% for Star and 10% for oneworld.
For Garuda, entering SkyTeam is an important component of the carrier’s new business plan, which also includes fleet renewal and expansion, product enhancements and ambitious growth of its international network. SkyTeam will particularly help Garuda in Europe, a market the carrier is focusing on in 2014 with new non-stop services to Amsterdam and London.
For SkyTeam, Garuda significantly improves the alliance’s access to Southeast Asia, in particular the region’s largest market – Indonesia. SkyTeam now has members in two key fast-growing emerging ASEAN markets – Indonesia and Vietnam.
Cambodia has emerged as one of the fastest growing markets in Southeast Asia, recording 18% passenger growth for the second consecutive year in 2013. Both of the country’s main airports, at the capital Phnom Penh and the popular tourist destination of Siem Reap, saw high double-digit growth.
Continued expansion at flag carrier Cambodia Angkor Air, which has tripled the size of its still relatively small international network over the past 18 months, should lead to more rapid growth in 2014. There will also be continued growth from foreign carriers, including from six carriers which entered the market in 4Q2013. But there is a threat of political instability potentially dampening demand.
The Cambodian market has almost doubled in size since 2009. But the growth comes from a relatively small base and after declines in 2008 and 2009, when Cambodia was significantly impacted by the global financial crisis.
Rapid growth in the Vietnamese market is starting to spread to secondary airports with new domestic and international routes. The new routes mark an important new phase in the development of the Vietnamese market which will accelerate as the country’s carriers pursue rapid expansion.
Typically Vietnam’s secondary airports have only been linked to the three primary airports at Hanoi, Ho Chi Minh and Da Nang. Vinh will become the fifth Vietnamese airport with scheduled international services on 12-Jan-2014, when Vietnam Airlines launches services to Vientiane in Laos. In 2013 Vinh also added two new domestic routes from LCCs VietJet and Jetstar Pacific, giving the airport five domestic destinations.
Vinh joins Nha Trang as a Vietnamese secondary airport with international services. Vietnam Airlines launched services from Nha Trang to Moscow in 2013, giving the airport three domestic and one international route. More international services and new domestic routes are likely as Nha Trang emerges as a popular beach destination.