Vietnam Airlines’ Irresistible Rise

An emerging Asian giant, the number one Vietnam carrier aims to quadruple passenger numbers in the country by 2035

Despite growing competition, Vietnam’s national carrier is gaining market share with improved inflight services on brand new aircraft and the largest network of any carrier in the country. IATA forecasts that passenger traffic in Vietnam is due to rise from 38 million in 2016 to 150 million by 2035, almost a four-fold increase. “We had an excellent year in 2017,” says Tri Hung Ngo, General Manager of Vietnam Airlines in Germany. “Our group – which comprises Vietnam Airlines and our affiliate airlines Jetstar Pacific and VASCO – transported 26.5 million passengers on nearly 180,000 flights, which is up 6.7% over the previous year.

WE HAVE A MARKET SHARE OF 60% ON DOMESTIC ROUTES AND CLOSE TO 33% ON INTERNATIONAL ROUTES.

We have a market share of 60% on domestic routes and close to 33% on international routes.” Total consolidated revenue of Vietnam Airlines and its subsidiaries was estimated at $3.9 bn, while its consolidated pre-tax profit reached a record $123.6 m, a year-on-year increase of 8.3%. Vietnam Airlines alone managed to record a pre-tax profit of US$81.4 m, an increase of 8% compared to 2016. The carrier is gaining market share in Europe. “We fly in Western Europe to three destinations – Frankfurt, London Heathrow and Paris CDG. We offer to European passengers flexible options with two daily flights linking Paris CDG to Hanoi and Ho Chi Minh City, 10 weekly flights from Frankfurt to both Hanoi and Ho Chi Minh City, as well as a daily service from London Heathrow,” says Hung Ngo. Vietnam Airlines also flies also up to three times a week from Hanoi to Moscow- Domodedovo. “We launched in Frankfurt this year our brand new Airbus A350-900 XWB offering a state-of-the-art products with three classes of service – Business, Premium Economy and Economy. With our ten frequencies, we now link six times a week to Hanoi, and four times a week Ho Chi Minh City, giving even more flexibility to our customers,” he adds.

From Hanoi and Ho Chi Minh City, passengers will find connections to over 20 destinations in Malaysia, Indonesia, the Philippines, China, Japan and South Korea, as well as to 20 domestic destinations. “In the past, we had long connecting times for our flights toward Australia but the opening of a new route between Hanoi and Sydney has cut transfer time in our Hanoi hub to less than three hours from Europe,” says Hung Ngo. Beside Vietnam, European passengers flying on Vietnam Airlines connect mostly to Cambodia and Laos. “In the Greater Mekong subregion, we offer some of the best connections to former countries of French Indochina. We fly ten times a day to Siem Reap/Angkor, up to five times a day to Phnom Penh, as well as up to three times daily to Luang Prabang and Vientiane in Laos. We also recently launched direct flights between Ho Chi Minh City and Sihanoukville in Southern Cambodia,” he adds. In the near future, Vietnam Airlines is hoping to launch a new route to Los Angeles, its first in North America. “We now wait for the approval of US civil aviation authorities,” says Hung Ngo. The aircraft flying the new US route will be the brand new Airbus A350- 900. “We will continue to offer more frequencies on our current network, probably going to a double-daily service to Frankfurt as Germany remains a very important market for us. We however look at Berlin as a new destination. It has actually good potential as Berlin has the largest number of Vietnamese residing in Germany,” he says.

Hall 26c / Stand 313

Photo : Tri Hung Ngo General Manager, Vietnam Airlines, Germany