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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.

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