09:18 | 14/10/2019 Companies
(VEN) - Vietnam Airlines was named in the top 10 best performing companies and included in Vietnam’s 50 best listed companies in 2019 by Forbes Magazine. The national flag carrier has been certified with a four-star airline rating by prestigious international air transport rating organization Skytrax for the fourth consecutive year. It is striving to become the first five-star airline in Vietnam after 2020.
Innovation and development
In recent years, Vietnam Airlines has made continuous efforts in improving service quality to affirm its leading role in integration, enhance the position of Vietnam’s aviation sector, and meet the travel needs of domestic and international passengers.
In the first eight months of 2019, Vietnam Airlines Group, which includes Vietnam Airlines, Jetstar Pacific and VASCO, operated nearly 110,000 safe flights, transporting 19.5 million passengers, a year-on-year increase of nearly four percent. Its on-time performance (OTP), averaging at 90 percent, remained among the highest globally. Demand-responsive load factor led to significant fuel saving and higher seat utilization of more than 81 percent.
Vietnam Airlines Group has received and put into operation new modern aircraft, such as two Boeing 787-10 Dreamliners, two Airbus A350s, and nine Airbus A321neos. The group has also opened many new routes, such as Da Nang-Busan, Ho Chi Minh City-Chu Lai, Da Nang-Can Tho, Da Nang-Da Lat, Ho Chi Minh City-Bali, and Ho Chi Minh City-Phuket, and reopened Da Nang-Bangkok route.
Vietnam Airlines Group has affirmed its leading position in the domestic market, with nearly 56 percent of the domestic market share in passenger transport.
In the first eight months of 2019, the state-owned group earned nearly VND70 trillion in consolidated revenue and reached consolidated pre-tax profit of more than VND3.1 trillion, 4.2 percent higher than the plan. Of which, pre-tax profit of the parent company Vietnam Airlines reached more than VND2.7 trillion, 2.1 percent higher than the plan. Significantly improved cash flow has ensured solvency and increased short-term investment opportunities. By the end of August 2019, its debt-to-equity ratio reduced to 2.32, lower than that of 2.58 at the beginning of the year.
Vietnam Airlines has also launched new products and services, such as offering the Premium Economy class in the domestic market, applying a new checked baggage policy, and rolling out in-town check-in services (Hanoi and Da Nang) and telephone check-in services in Noi Bai and Tan Son Nhat airports.
Vietnam Airlines had its own shares (HVN) officially listed on the Ho Chi Minh Stock Exchange (HOSE) on May 7, 2019. In the coming time, Vietnam Airlines plans to push for organizational restructuring, develop the fleet, and finalize the investment plan of 50 narrow-body aircraft for the 2021-2025 period.
In general, Vietnam Airlines has achieved positive results, given the world economic-political instability and signs of the slowdown in the domestic market.
Standing firm in the face of hot growth
As more entrants are joining the market, competition in the Vietnamese fast-growing air transport market has become fiercer. Increasing numbers of airlines and aircraft are also putting serious pressure on Vietnam’s aviation infrastructure, especially in major airports such as Noi Bai and Tan Son Nhat.
This increase has resulted in great difficulties for Vietnam Airlines in expanding its operational scale and increasing its supply, while affecting service quality and causing the shortage of high-quality technical human resources, such as pilots and aircraft engineers.
To overcome difficulties, Vietnam Airlines has implemented a number of solutions, such as maintaining and improving operational efficiency, reviewing operational strategy adjustment according to market movements, and promoting cooperation with other airlines. Vietnam Airlines has also focused on improving the quality of ground services at airports, rolling out new check-in services, and increasing the rate of self-check-in by deploying self-service options.
Vietnam Airlines has been active in developing its labor quality. The management staff is provided training courses to improve knowledge and expertise, while pilots are well-trained at professional training facilities with many years of experience.
Efforts to become a five-star airline
Vietnam Airlines will continue to promote the Vietnam Airlines-Jetstar Pacific dual-brand strategy and closely coordinate with other airlines in the group to improve competitiveness and diversify products and services in order to ensure long-term and sustainable development.
The carrier will continue to develop its fleet according to the fleet development plan for the 2021-2025 period, with a vision to 2030, and finalize the investment plan of 50 narrow-body aircraft for the 2021-2025 period. In addition, the airline will take delivery and operate wide-body and narrow-body aircraft, such as Boeing 787-10 and Airbus A321neo.
Vietnam Airlines is making steady progress in its digital transformation, giving passengers a more convenient and safe flight experience. In 2018, Vietnam Airlines launched the advanced wireless streaming service on the new A321neo fleet. Passengers can use their personal mobile devices to access the wireless in-flight entertainment system and experience diversified and attractive entertainment programs. Vietnam Airlines will also continue to improve customer experience by offering onboard wifi in October this year.
To win the five-star rating, Vietnam Airlines will implement comprehensive upgrading of ground and air services, such
as operating new aircraft, offering onboard wifi, improving in-flight entertainment programs, introducing the authentic
Vietnamese delicacies by Vietnam Airlines’ Cuisine Ambassador Luke Nguyen, and expanding the Lotus Lounge at