Vietnam Airlines Sees Successes in 2007

International and domestic flights normally rise in the first quarter and 2007 is no exception. Returning Viet Kieu (overseas Vietnamese) and tourism demand increased flight frequency in the period.

 

Severe competition on international routes, with the presence of many giant international airlines and budget airlines, has caused difficulties for Vietnam Airlines. Moreover, the shrinking airplane hiring market, the high hiring price, the volatility of fuel prices and the threat of avian flu outbreak continue to cause difficulty for Vietnam Airlines’ operations. In addition, in late February and March, periodic weather changes also caused difficulties in operations in several airports in northern and central regions.

 

Nonetheless, Vietnam Airlines still obtained estimated turnover of VND4,871 billion (US$304 million), fulfilling 25 per cent of the revenue target set for the year and 37 per cent of tax payment. In the first quarter, VNA operated 14,000 safe flights, including many VIP flights. VNA carried two million passengers in the three-month period, up 16.8 per cent year on year, including 900,000 international passengers. The seat occupancy of VNA was 73.7 per cent in the first quarter, an increase of 3.64 per cent from the same period last year. Also in the first quarter, VNA transported 26,395 tonnes of cargo, representing an on-year rise of 6 per cent.

 

In the first quarter of 2007, VNA continued hiring four B787 of Boeing Corp. At the same time, VNA also quickly carried out the plan to buy five new ATR72 airplanes as approved by the Prime Minister. In order to modernise information technology infrastructure for business operations, VNA signed a deal with Unisys World Trade to apply an e-payment system to VNA services.

 

On March 10, 2007, VNA opened a direct route from Hanoi to Buon Me Thuot, under the plan to expand the domestic flight network. In the first quarter, VNA received four Airbus A321, raising its fleet to 44 aircraft.

 

In the second quarter of 2007, VNA will receive new A321 airplanes and put them into service. It also has plans to hire B777-200ER airplanes to increase service capacity under its strategy. The Vietnamese flagship carrier will apply e-business and e-ticket selling for the convenience of clients using its airway services.

 

Leaders of VNA said in the coming time, VNA will speed up the equitisation project and finish the corporate charter and legal procedures for the formation of a holding company that was approved by the Government. It will also prepare for the opening of direct flights from Vietnam to US.