Vietnam Airlines Sees High Growth in 2004

3:26:28 PM | 7/8/2005

On December 26, 2004, Vietnam Airlines received its 5^th million passenger. In 2004, the airline recorded a high growth with a turnover of VND17,390 billion (VND6,000 billion or 16 per cent more than the plan), budget revenue of VND404 billion (13.4 per cent more than the plan) and before-tax profit 40 per cent more than 2003.

Mr. Nguyen Xuan Hien, General Director of Vietnam Airlines, said that the growth rate in 2005 will be 13-15 per cent and 100 pilots are being sent for training abroad. By 2010, Vietnamese pilots will fly 85 per cent of domestic and regional air routes. The present number of stewards is 1,500 and some 200 will be increased each year. By the end of 2005 and early 2006 new air routes will be opened to West and North America as well as South Asia (India). More flights will be extended to France, the UK, the Far-Eastern part of Russia and the West Coast of Australia.

Mr. Pham Ngoc Minh, Deputy General Director of Vietnam Airlines, added that in 2004, the growth rate was 24.5 per cent with 31 per cent increase in flight distance and in 2005 will be 15 and 18 per cent respectively. The number of passengers increased 16 per cent in domestic flights and 36.5 per cent in international flights. The growth rate of Vietnam Airlines is regarded as among the highest in Asia and the world.

Vietnam Airlines has recently signed a purchase of 10 Airbus A321s, will buy 4 more Boeing 777s and hire additional Boeings and other aircraft to meet the increasing demand. The airlines will also improve the ticket prices keeping the fluctuation of 10 per cent to balance the demand and supply. Everyday, 16,000-16,500 passengers travel by Vietnam airlines.

Concerning services, the airline will reduce the delayed flights to 12 per cent (compared to 8-10 per cent of major American airlines).