Vietnam Airlines Update

Transcript

Le Hong Ha:For the first 10 months of 2017, the market growth in Vietnam mostly from international. So the growth rate international around nearly 30%, mostly from China, double compared to last year. Northeast Asia, where low-cost airlines put more capacity in. And for Vietnam domestic, the market growth rate around 9.6% in the first 10 months due to the market seem to be overcapacity. Then the low-cost airlines like Vietjet or Jetstar Pacific pull out of the domestic and focus on international market. And the second issue I think is the airport facility, that some congestion especially at Tan Son Nhut Airport and some other airport in Vietnam. For the next year, we focus the domestic market still grow double GDP growth rate, so around 14% in 2018, and international market still keep the growth rate around 20%. Then for the next year, Vietnam Airlines focus more on internationally to keep the market share on that, and we keep the growth rate for domestic The same as the growth rate of the total market, around 14 to 15%. For Vietnam Airlines, for the first 10 months, we grow at around 7 or 8% for the first 10 months, mostly in domestic. We keep domestic growth around 11% and international market around 3 to 4%. For domestic, We believe that we can keep at least 1.5% compared to GDP rate, so keep around more than 10%. For Vietnam Airlines, the China market is important to us, the China market, then the Northeast Asia, South Korea market, and Japan markets. is the most important market to Vietnam Airlines. Then we focus on that. Beside that, we keep our market share on Southeast Asia route. And for Europe, I think we keep capacity. For the US route, we plan to operate, as our CEO said, in 2019, 2019. Why 2019? Because we— the first thing that we need approval from DOT for that, and then the second issue that we try to select the right aircraft equipment to operate to the US. Now under discussion, under study on A350 Ultra Range or Boeing 787-10. We still have to stop somewhere else in Northeast Asia. Then it's not the right equipment to operate to the US right now. We are under discussion with Boeing and Airbus for the new equipment. This is the first joint venture of Vietnam Airlines with Air France. Then we With Air France, we can strengthen the trunk route between Vietnam and France, Paris, and then beyond Paris and beyond Vietnam, or domestic France and domestic Vietnam. We've got a plan to work together with Air France to increase frequency. A321neo, mostly for regional routes, domestic, Southeast Asia and Northeast Asia. So in the range of 3 to 4 hours. For next year, we grow the A320— how to say— is the narrow-body fleet. We grow, we add more aircraft for narrow-body. For 787-10, we We use that kind of aircraft for Northeast Asia with the range more than 5 hours, like Japan, Japan, South Korea, and Australia.

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