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- IATA Code
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- 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
- Joined Alliance
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- Codeshare Partners
- Air Europa Lineas Aereas
Cambodia Angkor Air
China Eastern Airlines
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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)
987 total articles
52 total articles
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.
Air New Zealand: long haul network grows to record highs, adding Ho Chi Minh, Houston & Buenos Aires
Air New Zealand continues to expand into new long haul markets. Air NZ in Dec-2015 launched a service to Houston in its core North America market and opened its first South American flight, to Buenos Aires. Its next long haul destination – Vietnam’s Ho Chi Minh – is also a more peripheral market for which Air NZ will have to stimulate interest, rather than accommodate existing demand.
Inbound tourism is a staple for New Zealand's economy and Air NZ supports this, but at the same it has an undeniably strong outbound market that will fuel Buenos Aires and especially Ho Chi Minh. Air NZ will be Vietnam’s 16th long haul service and only the eighth by a foreign carrier. Often forgotten in the shadow of China and tourism boom elsewhere in Southeast Asia, Vietnam with its 90 million population is ripe for international growth.
After restructuring its long haul network, Air NZ in 2015 had more long haul flights and capacity than prior to the restructuring. Its new routes will see it grow even further. There will be 15% more long haul flights in 2016 than a past recent high in 2005.
Jetstar Pacific is accelerating fleet and network expansion as the Vietnamese LCC looks to make up for lost ground after being overtaken by its younger and more ambitious rival VietJet Air. The LCC languished, and was consistently unprofitable for the first seven years as the Qantas partnership slowly evolved, but it is now on track to post its first annual profit since adopting the Jetstar Pacific brand in 2008.
Jetstar Pacific resumed expansion in 2014, ending a prolonged period of flat or negative growth. Over the past two years it has more than doubled its fleet and domestic network while launching international services.
Shareholders Qantas and Vietnam Airlines have committed to nearly triple the joint venture’s fleet over the next five years to up to 30 aircraft. Vietnam Airlines took over the majority stake from another government entity in early 2012, but has only recently begun to implement a clear dual brand strategy using Jetstar Pacific to compete against VietJet at the fast-growing bottom end of the Vietnamese market.
Vietnam Airlines has placed into service its first batch of 787-9s and A350-900s, enabling it to begin implementing a major widebody fleet renewal programme. Vietnam Airlines is only the second operator of the A350 worldwide and the successful introduction of two new-generation widebody aircraft types within only one month is a major accomplishment for a relatively small long-haul carrier.
The 787s and A350s are initially intended as replacements but there will be opportunity for some modest growth in the short term including a new route from Sydney to Hanoi. The Vietnamese flag carrier is also now looking at other new widebody types, including ultra long-range variants that would be used to launch non-stop services to North America. Vietnam Airlines has been looking at the 777-8X but could instead emerge, along with Singapore Airlines, as a launch customer for the proposed A350-900ER.
The biggest benefit of the new widebody fleet is increased efficiency and product improvements, including the carrier's first lie-flat business class seat. The enhancements could help Vietnam Airlines attract a strategic investor after an initial attempt to sell a stake to a foreign airline as part of its late 2014 initial public offering did not succeed.