In 1956, Vietnam airlines was established. In September 1956, the first domestic flight took off. At this time, the size of flying team was so small with just 5 airplanes.
In the period from 1976 to 1980, Vietnam airlines broadened and exploited international airstrips in Asia to some countries such as Laos, Cambodia, China, Thailand, Philipines, Malaysia and Singapore.
In the past 20 years, with consistently average growth rate in double digits, Vietnam Airlines has been growing and developing to become a popular brand in the region thanks to the competitive advantages of modern fleets, extensive airway networks and convenient services, especially in Indochina. Until now, Vietnam Airlines has exploited air trips to 21 domestic provinces and cities and 28 international destinations in 26 countries and territories (Europe, Australia, America and Asia).
In 2006, after achieving Certificate of Safe Exploitation from Association of International Air Transport (IATA), Vietnam Airlines officially became a member of the IATA and confirmed their international standardized services. On 10/6/2010, Vietnam Airlines officially became the 10th member of the global airline alliance – Sky Team. This event marks great development in the company's successful integration into the international airway market. After joining Sky Team, Vietnam Airlines' airway network extended to over 1000 destinations all over the world.
II. Strategy: Vision and Mission
Slogan: “Bringing Vietnamese Culture to the World”
Vietnam Airlines set the goal to maintain its position as the best Airline of Vietnam and become:
- A four-star airline and 3rd best airline in Southeast Asia region.
- One of the best airlines in the world.
Being the best means they try to achieve excellent in everything they do. Their dynamic team offers the best quality service so that customers will be happy when they choose Vietnam Airlines.
The four vital key success elements:
Destination: choosing destinations to help Vietnam connect with the world.
Environment: providing a welcoming and friendly environment with relaxing and high quality service to make customer feel like their home.
Convenience: offering customers with a whole range of services and flexible flight hours.
Reputation: selecting professional teams to satisfy customers with superior personal service.
The Lotus flower has been chosen as a symbol and logo of Vietnam Airline since 2002, which presents the most meaningful symbols of Vietnamese people. In Vietnamese culture, the lotus is considered as the representation of ancient strength and powerful helping to retain their unique traditions. With this logo, Vietnam Airlines believe that they will enhance their position in the world transportation hub
III. Tatical-level activities
Develop a global route network to meet the requirements of economic and development as well as international integration, with medium operating scale compared to the region
Possess a young high-tech flight fleet which is suitable for the modern routes network; improve quality as well as quantity of staff
Raise the service quality to the high level recognized in the region, yet still maintain Vietnamese culture in the service
Capable air carriage of passengers, baggage, cargo, parcel, letter;
Maintenance, production, supply, export and import (rent, lease, purchase and sale) of aircraft, engines, spare parts, aviation equipment and other technical devices
Recruitment and training of staff, personnel in accordance with professional standards
Providing services for commercial ground techniques, services in the passenger terminal, goods terminal; freight forwarding services; commercial services, duty free sales at airports and in the provinces as well as cities; the apron services at airports, and other aviation services;
Agent services for airlines; manufacturers of aircraft, engines, equipment, spare parts; transport companies and domestic and abroad tourism;
General aviation (aerial photography flight, geological surveys flight, flight for calibration of air navigation radio, repairation and maintenance of high voltage lines, serving oil and gas, afforestation, environmental monitoring, search and rescue, emergency medical service missions flying political, economic, social, security, defense ...);
Production, processing, import and export of food to serve on aircraft, instruments serving for air transport chain; import - export and supply of oil, aviation grease (including fuels, lubricants and special liquids) and other petroleum at the airport, the airport and other locations;
Finance and finance leasing, banking;
Construction, construction consultancy, import and export of labor and science and technology services;
• Buying and selling businesses;
• Join stake, purchase shares or transferred equity, sell shares in accordance with law;
IV. Operating-level activities
Vietnam airlines – situation in 2009-2014
- average scale exploitation is only about 225 flights / day
Vietnam Airlines joined the SkyTeam airline alliance - June 10, 2010 - The ceremony of joining the organization in Hanoi today, Vietnam Airlines officially became the first airline in Southeast Asia to join the global airline alliance SkyTeam. This is a strategic step in the development confirmed and expanded the scope of activities in the Asian market by SkyTeam.
Vietnam Airlines and Minh Long I Company contracted production of porcelain tableware serving passengers in Business Class - 20 January, 2010 - Today, the Aviation Corporation of Vietnam (Vietnam Airlines), and Minh Long I Co., Ltd. officially signed cooperation contract manufacturing of porcelain tableware Business Class passenger service Date on flights of Vietnam Airlines from mid- 2011 signing ceremony was solemnly held at Ming morning Trade Center Plaza - 888 Pacific Avenue - Thuan An - Binh Duong Province, marking the collaboration between two great brands to bring you the Vietnam Airlines passengers superior service quality, sexism Vietnam culture through stylized image of delicate apricot flower.
Vietnam Airlines signed a contract pilot training base in Vietnam
- October 14, 2010 - Today, the Aviation Corporation of Vietnam (Vietnam Airlines) contracted 60 pilot training base in Vietnam in the period 2010-2012 to a joint stock company training Bay Vietnam - pilot training unit in Vietnam was the first certification approved ATPL training facility.
Vietnam Airlines to coordinate with the city government. Danang conference to launch global tourism Central - September 16, 2010 - Aviation Corporation Vietnam (Vietnam Airlines) in collaboration with the People's Committee of Da Nang City, Quang Nam, Quang Ngai, and Thua Thien Hue successfully organized the Global Customer Conference and Development tourism in the central city of Da Nang with the participation of over 300 delegates is the company's top travel agents from the key markets of Vietnam tourism such as Japan, South Korea, Germany, France, Russia, Australia, Taiwan, Hong Kong
Vietnam Airlines awarded Honorary Membership Platinum Professor Ngo Bao Chau - August 28, 2010 - Today, Vietnam Airlines to coordinate with the Ministry of Education and Training celebrated Professor Ngo Bao Chau - the first Vietnam was awarded the Fields Medal - the most prestigious award in the world mathematical fields - returning from the International Congress of mathematicians in India 26th.
Vietnam Airlines promotion to Northeast Asia - Deals on flight VN968 and VN969 numbered City exploitation stage. Ho Chi Minh City to Norway - knee - a (Japanese) and the City. Ho Chi Minh City with attractive price $ 299, down to 60% from the normal price from 25/07/2010 to 04/08/2010 and end on cruise departs from 13/08/2010 to 31/12/2010.
Vietnam Airlines to continue resuming flights to / from Europe - 21 May 04, 2010 - To restore operation on routes to Europe affected by volcanic ash in Iceland, after 06 successful flights yesterday 20/4 to / from France and Russia, Vietnam Airlines will conduct flights and regular flights to Europe next offset
Officially launching new routes: Open more 11 international and domestic airways
- December 1, 2010 - Today, Vietnam Airlines officially announced that it will open the city routes. Ho Chi Minh City - Beijing (China) from 16/12/2010 with the frequency of 3 flights a week on Mondays, Thursdays and Sundays with Airbus 321 (184 seats).
- November 15, 2010 at Tan Son Nhat airport, the first flight of Vietnam Airlines takes off for new routes starting city. Ho Chi Minh City - Teeth-gun (Myanmar ma) - City. Ho Chi Minh City. This is the second aircraft from Vietnam to Myanmar, Vietnam Airlines ma be operated with frequency 3 flights / week by Airbus A320 on Monday, Friday and Sunday.
- 13 May 08, 2010 - Today, the official Vietnam Airlines exploitation City return direct flights. Ho Chi Minh City - Na Nagoya (Japan) with a frequency of 2 flights / week on Mondays and Fridays using Airbus A321 aircraft.
- 30 May 06, 2010 - Corporation Vietnam Airlines announced it will open direct flights between Ho Chi Minh City and Nagoya (Japan) from 13/08/2010 with the frequency of 2 flights / week on Monday and Friday using Airbus A321 aircraft
- May 15, 2010 - Today, the Aviation Corporation Vietnam - Vietnam Airlines in collaboration with the Provincial People's Committee of Nghe An inauguration ceremony held in Hanoi routes - Vinh - Hanoi.
- March 2, 2010 at Noi Bai airport in Hanoi, Hanoi flight - the first gun Teeth Vietnam Airlines will take off, start new routes Hanoi - Dental gun (Myanmar ma) - Hanoi.
Vietnam Airlines and Jet Airways signed a strategic cooperation agreement October 12, 2011 - Aviation Corporation Vietnam (Vietnam Airlines) and Jet Airways (India) signed a framework agreement on strategic cooperation during his State visit to the Republic of India, State President Truong Tan Sang. Accordingly, the two companies will cooperate in the field of comprehensive commercial, services, technical and training as a prerequisite for the establishment of direct flights between the two countries Vietnam - India shortly. The signing ceremony took place in the presence of State President Truong Tan Sang and Mr Muthuraman - President of the Union of Indian Industry and the senior officials of Vietnam and India.
Program "Promotion Special Class - Deluxe Y"
September 26, 2011 - Aviation Corporation Vietnam (Vietnam Airlines) announced the program "Promotion Special Class - Deluxe Y" up to 35% on direct flights between Vietnam and Europe (France, Germany, Russia).
Discounts in new routes Vietnam - United Kingdom Vietnam Airlines announces deployment of promotions on the occasion of opening of direct flights between Vietnam and the United Kingdom. Accordingly, customers in Vietnam buying tickets for the period 15/09/2011 - 15/10/2011, 08/12/2011 departure date and return journey
ended before 31/12/2011 will be enjoy preferential rates VNĐ 12,500,000 (equivalent to 599 United States dollars). This is the round-trip fare, inclusive of all taxes, fuel surcharges and may change according to the exchange rate at the time of ticketing.
Expand the program "Free & Easy" Domestic 2011
Vietnam Airlines official announcement to expand the program "Free & Easy" Domestic 2011 with many improvements to serve passengers wishing to travel or work combines travel to Hanoi, Da Nang, Hue, Tuy Hoa, Nha Trang, Da Lat and Ho Chi Minh. The highlight of the program "Free & Easy" 2011 customers will have more choice about standard hotel from 3 to 5 stars spread across three regions (rather than only applies to the 4 or 5 star hotels in the central region as before)
Vietnam Airlines discount policy applies to the elderly Customers are citizens of Vietnam from the full 60 years or older to purchase tickets on domestic routes due Aviation Corporation Vietnam (Vietnam Airlines and Vasco) operators will be reduced by 15% from the ceiling prices for economy class State regulations. This policy only applies when ticket at the box office of Vietnam Airlines nationwide.
Ocean Bank and Vietnam Airlines signed a loan contract to purchase backup engine Airbus 321 aircraft
Ocean Commercial Joint Stock Bank (Ocean Bank) and Aerospace Corporation Vietnam (Vietnam Airlines) announced the signing of a loan agreement to purchase backup engine for the Airbus A321 aircraft. This is the kind of V2533-A5 engines provided by the engine manufacturer IAE world famous (International Aero Engine AG), delivered in May 2011 Total contract value on a credit of up to $ 7 million
Vietnam Airlines to support the people of Japan 650 million Ha Noi, 18 May 03, 2011 - To share the losses, big losses due to the earthquake and tsunami in Japan, the Aviation Corporation of Vietnam (Vietnam Airlines) decided to support the amounts 650 million contracts to people here. The amount deducted from the Fund's social activities Vietnam Airlines, is expected to be a branch office in Tokyo Vietnam Airlines awarded directly to the Japanese Red Cross Society.
"Welcome Summer 2011" program
Vietnam Airlines (VNA) announced the "Welcome Summer 2011" with many attractive special rates apply on these routes from Vietnam to international and domestic backbone exploited by VNA. During the promotion period, customers traveling on international flights of Vietnam Airlines can buy a return ticket for the price of 1.024 million VNĐ (approximately 49 USD) to VNĐ 10.425 million (equivalent to 499 USD ) depending on
destination. On domestic flights between Hanoi - Ho Chi Minh City. Ho Chi Minh City and from the two cities to Da Nang, Vietnam Airlines will open the sale at the lowest price (P class).
Officially launching new routes
- January 20 06 2011 - Vietnam Airlines officially announced that it will open direct flights between Vietnam and the United Kingdom from the date 08/12/2011 in the winter flight schedule 2011 in the Boeing 777, is expected to exploit 7 flights / week in 2014 London Gatwick Airport to exploit selected flights to / from the UK.
- 30 May 05, 2011 - Vietnam Airlines officially exploiting direct route Hanoi - Kaohsiung (Taiwan) from 17/6/2011 with a frequency of 3 flights / week on Mondays, Wednesdays and Fridays by Airbus A321.
- Vietnam Airlines officially returned routes exploitation Da Nang - Hai Phong from 28/4/2011 with a frequency of 5 flights / week on Mondays, Wednesdays, Thursdays, Fridays, Sundays with ATR72 (68 chair).
- Vietnam Airlines (VNA) has reported the Ministry of Transport (MOT) restructuring proposals include targeted share of the parent company in 2013 and measures to improve competitiveness and performance of the corporation. => VNA will have 15 subsidiaries and 12 associated companies (compared with 18 subsidiaries and 14 associated companies at present); which includes the national airline company Fly Air Services (Vasco), Jetstar Pacific - the airline that VNA is holding represents 69.93% state-owned, joint ventures airline Cambodia Angkor Air
"10 weeks unleash takeoff and Vietnam Airlines" program
December 10, 2012 - Vietnam Airlines announced the deployment of open sales program "10 weeks unleash takeoff and Vietnam Airlines" on some domestic routes -> each week from 12.12.2012 to 27.02.2013 customers will have the opportunity to buy airline tickets for travel between Hanoi and Da Lat / Buon Ma Thuot / Tuy Hoa / Chu Lai / Quy Nhon ; City. Ho Chi Minh City and Quy Nhon; Da Nang and Pleiku / Da Lat; Rach Gia and Phu Quoc; Phu Quoc and Tho with special rates from only 199,000 VNĐ
Program "Promotion Fall 2012"
August 6, 2012 - Today, Vietnam Airlines announced the implementation of the program "Promotion Fall 2012" with many attractive special rates (down to 50%), applied on a number of international routes and domestic flights by airline operators.
Officially launching new routes
- October 22, 2012 - Today, Vietnam Airlines officially notified operators Da Nang direct route - Vinh from 10/28/2012 with the frequency of 4 flights / week on Mondays, Wednesdays and Fridays and Home Updated by ATR72 (68 seats)
- 12 December 2012 - began operating direct flights put City. Ho Chi Minh City - Jakarta (Indonesia) with frequency of 4 flights / week on Tuesday, Wednesday, Friday and Sunday using Airbus A321 aircraft.
- Launched new straight airways from Hanoi to Phu Quoc in 14th December 2012
SPECIAL PROMOTION FOR VIETNAM – LAOS ROUTE
“Golden lotus program” (GLP) members could also enjoy a special promotion program once they book a trip from Hanoi or Ho Chi Minh City to Vientiane and Luang Phrabang (Laos), with details as follows:
Bonus miles for newly registered members
A total of 3,000 bonus miles are granted to new GLP members who have successfully registered in the period from December 15, 2012 to March 15, 2013 and have mailing address in Laos.
GLP members will have their miles doubled when flying between Hanoi, Ho Chi Minh City and Vientiane, Luang Phrabang on Vietnam Airlines flights with designated VN carrier code.
The promotion is valid from December 15, 2012 to March 15, 2013. Eligible booking classes: C, D, J, Y, W, S, B, H, L, T, N, R, O, Q.
December 1, 2013, Vietnam Airlines (VNA) system deployment in counter automated pre-flight (kiosk check-in) at the Noi Bai International Airport - Hanoi to improve the quality of service of its customers .
"Welcoming Fall 2013" Progam
05 May 08 2013 - Vietnam Airlines (VNA) announced program "Welcoming Fall 2013" with preferential rates on many domestic routes and international exploitation by VNA. The
program applies to retail customers in Vietnam buying tickets from 08.08.2013 - 22.08.2013, cruise departures in the period 19.08.2013 - 31.03.2014. Accordingly, the
- The single fare for the journey inland VNĐ 333,000 and 666,000 VNĐ.
- Ticket price for international journeys lowest VNĐ 199,000 (approximately 9 USD), depending on the route.
"Welcome Summer 2013" program
05 May 04 2013 - Vietnam Airlines (VNA) announced the "Welcome Summer 2013" with preferential rates on all the domestic routes and international exploitation by VNA. The program applies to retail customers in Vietnam buying tickets within 14 days from 08/4/2013 to end on 04/21/2013.
Launched “Golden moment” program
September 3, 2013 - Vietnam Airlines announced the deployment of programs sold "golden moment" on some domestic routes. Accordingly, from 05.09.2013 to 09.12.2013 customers will have the chance to buy airplane tickets to travel between City. Ho Chi Minh City - Vinh / Hai Phong with special rates 666.000d / pm and between Hanoi / Ho Chi Minh City - Hue price 555.000d / afternoon. Departure times from 12/9 to 11/15/2013. The price does not include taxes and fees, tickets and accompanying conditions apply.
Officially launching new international routes:
December 23, 2013 - Vietnam Airlines official announcement exploit new international routes Vinh - Vientiane (Laos) from the date of 01/12/2014.
June 24, 2013 - Vietnam Airlines officially notified exploiting two new international routes Da Nang - Seoul (South Korea), and Da Nang - Siem Reap (Cambodia share) from the date of 01/7/2013.
March 27, 2013 - Today, Vietnam Airlines officially notified operators direct flights Nha Trang - Moscow, Moscow (Russian Federation) from 04/05/2013 with the initial frequency of 1 visit / week on Friday with Boeing 777 aircraft.
January 8, 2013 - Today, Vietnam Airlines officially notified operators direct route HCMC - Thanh Hoa from 2.5.2013 frequency of 5 flights / week on Mondays, Wednesdays, Friday, Saturday and Sunday using Airbus A321 (184 seats).
Golden moment 2nd, 3rd, 6th, 7th, 8th, 9th, 10th from 16th Sep 2013 to 28th April 2014
Continue selling "golden moment" 12 times
August 11, 2014 - Vietnam Airlines announces deployment programs continue selling "golden moment" 12 times on some domestic routes and international carriers. The "Golden Autumn 2014"
Hanoi, July 29, 2014 -Vietnam Airlines (VNA) announced the "Golden Autumn 2014" with more preferential price only from VNĐ 199,000 (approximately 9 USD) on some international routes due to VNA exploitation. This is one of the largest programs of its preferential deployed annually yearly. The program applies to customers in Vietnam buying tickets from 08/08/2014 to 22/08/2014, departing in the period from 22/08/2014 to 31/03/2015.
“Buy good price to Europe soon” Program
July 21, 2014 - Vietnam Airlines (VNA) launched the program "Buy good price to Europe soon." Accordingly, customers will have the opportunity to buy a return ticket to Europe with great rates from now until 31/08/2014 for cruise departures during the period from 01/9/2014 to 31/12/2014 , namely: - On the journey between Hanoi / Ho Chi Minh City. Ho Chi Minh City to / from 03 cities of Paris (France) / Frankfurt (Germany) / London (UK) and 23 regional cities in Western Europe, preferential rates return VNĐ 9.595 million respectively (equivalent to 449 USD) and VNĐ 11.727 million (equivalent to 549 USD) - On the journey between Buon Ma Thuot / Da Nang / Da Lat / Hue / Nha Trang / Pleiku / Tuy Hoa / Quy Nhon / Chu Lai / Dong Hoi to / from 03 cities Paris / Frankfurt / London and 23 cities Western Europe, preferential rates return VNĐ 10.445 million respectively (equivalent to 489 USD) and VNĐ 12.585 million (equivalent to 589 USD). The flight connecting flights in Hanoi / HCMC Ho Chi Minh City.
Special discount for retail customers to purchase tickets and depart for South Korea
07 - 09 January 2014 - Vietnam Airlines (VNA) program implementation sell special discount for retail customers to purchase tickets and depart for South Korea from now until 07/31/2014. Specifically: - For the journey Hanoi - Seoul / Busan, customers will have the opportunity to purchase a return ticket with preferred rates for business class is 16.999.000VND / tickets (equivalent to
$ 800) and economy class ticket is 10,199 .000VND / tickets (approximately 480USD) - For city journeys. Ho Chi Minh City - Seoul: preferential rates applicable to business class roundtrip ticket is 16.999.000VND / tickets (approximately $ 800) and one-dimensional as 9.555.000VND / tickets (approximately $ 450)
Officially launching a new international routes
July 16, 2014 - launched a new international routes to Japan's capital Tokyo is Da Nang - Narita for first flight VN318 bearing number, which marks its 10th route from Vietnam to Japan from Vietnam Airlines. -> This is the first route was opened between City. Da Nang - The capital Tokyo, and was the 3rd international routes originating from Da Nang to Siem Reap after routes (Cambodia), Seoul (South Korea) of Vietnam Airlines. New routes will contribute to promoting tourism between Japan and Central Vietnam through an international gateway Da Nang.
July 1, 2014 - launched a new international routes to Japan's capital, Tokyo, Hanoi - Haneda flight VN384 first bearing number. New routes Hanoi – Haneda. On the occasion of opening new routes, Vietnam Airlines will launch ticket sales incentive programs for customers.
V. Current situation facing Vietnam Airlines
- Other low-cost competitors:
+ Domestic: VietjetAir, Jetstar Pacific Airlines…
+ Foreign: Emirates, Etihad Airway, Qatar…
- Ticket-price competition: expanding flight path and flight fleet, offering regular and huge discounts… => Customers are the ones who benefit
- Lose domestic and international market share:
+ Domestic: 80% in 2011 down to 61.4% in 2013 and then, expected 55% in 2014
+ International: 40% in 2011 down to 40.5% in 2013 and then, expected 39.3% in 2014.
- Lose a number of customers shared by other competitors
- Lose profits from carrying cargo and passengers
High and increasing fuel prices
- 2 sources of fuel:
+ Minority: supplied by a domestic manufacturer
+ Majority: Imported from Eastern Europe => import duty
- Political disturbance in the Eastern Europe
- Price of fuel rises => Higher input cost
Unstable exchange rates
- VND depreciation => Increase price of fuel imported
- VND appreciation => Decrease revenue from foreign customers in international flights
Difficulty in obtaining permission for air traffic in flight paths in China
Difficulty in booking slots in over-loaded terminal airports in China and Taiwan
Obstacles in equitization and restructuring process:
- IPO => raise capital and spend on buying new airplanes
- After a successful IPO, no direct funding support from the government any more
- State: 75% of charter capital => Risks of losing state budget due to red-tape, corruption, “group benefit”…
- Delay and difficulty in the divestments in business for issuing shares due to complicated formal procedures
Probability of risks of air flight accidents: fog, storm and other unfavorable weather conditions…