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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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Cambodia Angkor Air
China Eastern Airlines
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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)
918 total articles
47 total articles
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.
VietJet Air is pursuing further domestic expansion as demand for travel within Vietnam continues to grow rapidly. VietJet secured a 40% share of Vietnam’s domestic market in Jul-2015 and should soon be able to capture a 50% share.
VietJet is launching services on 1-Oct-2015 to Pleiku, which will become its sixteenth domestic destination, and is now looking at using regional jets to open up new secondary domestic destinations which cannot be accessed by its fast-growing fleet of A320 family aircraft. VietJet is keen to test out a new regional strategy by wet-leasing an Embraer E195, which would be used to launch services by the end of 2015 to the Vietnamese resort island of Con Dao.
International expansion has been relatively modest and is much more risky than domestic expansion. VietJet is launching services in Oct-2015 to Yangon, its fifth scheduled international destination, but is wisely focusing most international expansion on charters, particularly to China. VietJet also has been very slow at expanding its affiliate in Thailand, where competition is more intense and market conditions are less favourable.
Locally in Hong Kong, Cathay Pacific has been in a rotating series of staff disputes with threats of work stoppages. But elsewhere in Asia competitor airlines have cast a worrying glow over Cathay and its long-haul growth. Cathay in Apr-2015 received its 50th 777-300ER; this in contrast to its previous long-haul workhorse, the 747-400, which numbered only 24 at its peak fleet size.
Cathay is the only Asian airline to have a significant presence in all three of Asia’s core long-haul markets: Australia, Europe and North America. Europe and North America will receive further growth as A350s arrive, while Australia expansion hinges on gaining added traffic rights. Cathay’s geography in the middle of Asia gives it cross-regional reach lacking at competitors, which are often smaller than Cathay.
A likely outcome of these dynamics is the evolution of deep partnerships between Northeast and Southeast Asian airlines. As they further consider endgame scenarios, consolidation becomes a possible future direction. Mergers will not be as integrated as in Europe, let alone North America, but the pressure for some forms of closer relationships is growing. One possible example could be a pairing of All Nippon Airways and Singapore Airlines.
It has been more than three months since Qatar Airways took delivery on 22-Dec-2014 of the world's first A350 XWB. Since then Qatar has taken delivery of only a second aircraft and has used it to increase Doha-Frankfurt service from one to two daily flights, perhaps for operational or commercial reasons although far catchier was Qatar CEO Akbar Al Baker's explanation the double daily A350 would "rub salt in the wound" of Lufthansa.
A far greater commitment is in Singapore, where Qatar Airways will have three daily A350 flights to Singapore, a longer flight than Frankfurt. Singapore may be the first airport to see two A350 operators when Finnair commences A350 service there after other Asian points.
Vietnam Airlines will launch A350 service to Paris CDG while Cathay Pacific may make Auckland an early A350 destination. A350 configurations range from 280 to 305 seats. No airline has first class (yet) and business class seat counts range from 29 to 46, with business class comprising 10-15% of total seats.
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.