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Vietnam Airlines upgauges and, where possible, adds frequency to drive growth, with N Asia focus

Analysis

Vietnam Airlines is planning more double digit capacity growth in 2017 and beyond. The airline expects growth to slow in Vietnam's domestic market, which has doubled in size over the last three years, but it is eager to pursue opportunities in the international market.

In North Asia Vietnam Airlines will expand by upgauging flights from A321s to 787s or A350s, particularly in markets where slot constraints preclude additional frequencies. Vietnam Airlines also plans to expand in Europe by adding frequencies to its four existing destinations, and is preparing to launch services to the US by 2019.

Vietnam Airlines plans to continue operating narrowbody aircraft regionally within Southeast Asia but is able to add short haul capacity by introducing higher capacity A321s. Vietnam Airlines has increased capacity on 10 of its A321ceos by cutting the business class cabin in half, and is planning an even higher density configuration for its A321neos, which will be delivered from 2018.

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