Vietnam Airlines to accelerate international expansion in 2018, with focus on North Asia

Premium Analysis

Vietnam Airlines is planning to accelerate international expansion in 2018 – primarily by adding capacity to North Asia. The airline expects to grow international passenger traffic by 14% in 2018, compared to growth of less than 3% in 2017.

Expansion of the narrowbody fleet with the delivery of new A321neos will drive some of the growth. The airline has opted for a 203-seat two class configuration for the A321neo, with only eight business class seats. Vietnam Airlines needs high density aircraft to compete effectively with LCCs in a price sensitive market.

The arrival of 787-10s in 2019 will provide another opportunity for Vietnam Airlines to reduce its unit costs and increase capacity on regional international routes.

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