09:27 | 03/11/2017 Companies
(VEN) - The hot growth of the aviation market has had positive impacts, leading to strong development of many service enterprises. For example, the Southern Airports Services Joint Stock Company (SASCO), is providing services such as duty-free sales, business lounges, food and beverage and others at the Tan Son Nhat International Airport.
The company recently released the 2016 financial report with the most impressive growth since it listed on the UPCoM market. Accordingly, SASCO served more than 15.5 million passengers in 2016, with after-tax-profit of VND233.9 billion. The company’s gross profit margin also increased from 37.1 percent to 42.5 percent, which helps to maintain its leading position in airport services field in Vietnam.
2016 was also the 10th consecutive year SASCO remained on top of the 500 largest Vietnamese enterprises list (VNR500). In addition, the company has obtained some significant achievements such as the 2016 Vietnam Value, Top 10 - Vietnam Business Council for Sustainable Development (VBCSD) in 2016, and Top Brands Vietnam (2014-2016). This is the achievement after two years of equitization with strong changes in synchronous implementation of business development strategy and management strengthening.
After two years of equitization, the company has seen strong changes. Specifically, SASCO has focused on in-depth development activities development activities such as improving product and service quality, restructuring business activities, strictly controlling costs and implementing administration in accordance with modern standards to minimize risks, thereby expanding markets, diversifying services and seeking more customers. Thanks to greater efforts, the company has achieved remarkable results.
Thanks to this turning point, the company has achieved remarkable results such as improved service quality, upgraded facilities, and constantly enhanced quality control system, which matches international standards and meets the integration requirements.
Bright aviation picture is a good sign, but the overload of airports and integration trend also pose a lot of challenges for service providers. Accordingly, the effect of the ASEAN Single Aviation Market (ASEAN-SAM) has allowed ASEAN countries and airlines operating in the region to directly benefit from the growth in air travel around the world, and also freeing up tourism, trade, investment, and service flows between member states. As a result, the number of passengers coming to Vietnam increases, while competition is fiercer.
SASCO general director Doan Thi Mai Huong says that total retail sales of goods and services at airports do not meet the growth of passengers. Passenger overload is also a factor affecting service quality. For example, Tan Son Nhat International Airport has a capacity of 25 million passengers a year. However the number of visitors through its airport reached 32 million passengers in 2016.
In the context of challenges and difficulties, SASCO determines to improve quality of products and services in order to bring the best to customers with the most reasonable prices.
SASCO has paid special attention to providing high-class services to enhance the competitiveness of Tan Son Nhat International Airport compared to other airports in the region; diversifying the forms of business to meet demand of customers; promoting advertisement on the mass media; and strengthening market research activities and marketing programs.
SASCO’s ultimate goal is to become a fellow-passenger of Tan Son Nhat International Airport, contributing to making the Vietnamese aviation market become one of the top four ASEAN aviation markets by 2020. If making the most of such opportunities, Vietnam will create a breakthrough in growth. The ASEAN-SAM is expected to fully liberalize air travel between member states in the ASEAN region.
Airlines and businesses in the field of airport services need to come up with clear roadmaps and plans, with the main focus on prices and quality of services, contributing to ensuring long-term competition and sustainable development.