Vietnam Airlines Company Limited (Vietnamese: Tổng Công ty Hàng không Việt Nam), trading as Vietnam Airlines (Vietnamese: Hãng Hàng không Quốc gia Việt Nam), is the national flag carrier of Vietnam. It was established as a state enterprise in April 1989, and is headquartered in the Long Bien district of Hanoi, with hubs at Noi Bai International Airport and Tan Son Nhat International Airport. From there, the airline flies to 46 destinations in 19 countries, excluding codeshares, using its fleet of 69 aircraft. Vietnam Airlines was subsequently formed in 1996, after bringing together several service companies. The company is overseen by a seven-seat management board, members of which are appointed by the Vietnamese Prime Minister. Vietnam Airlines was the major stakeholder in Vietnam's second largest carrier, Jetstar Pacific Airlines, but its share has recently been transferred to the Ministry of Finance, then subsequently, to the State Capital Investment Corporation (SCIC).
With the core activity of the airline being passenger transportation, Vietnam Airlines also earns revenue from catering and the maintenance and overhauling of aircraft through a number of its subsidiaries. The maintenance and overhauling of aircraft is handled by Vietnam Airlines Engineering Company (VAECO), while the former is performed by Noibai Catering Services Join-Stock Company and Vietnam Air Caterer, who cater airlines that use Vietnam Airlines’ hubs for the flag carrier. The airline also controls and operates its cargo division, Vietnam Airlines Cargo, using the airline’s luggage hold on its passenger fleet, as well as a number of dedicated airplanes.2 Vietnam Airlines owns 100% of Vietnam Air Service Company (VASCO)—a regional airline in southern Vietnam, and 49% of Cambodia Angkor Air—the national flag carrier of Cambodia.
The airline is ranked as a 3-star airline according to the independent research consultancy firm Skytrax. Vietnam Airlines became a member of SkyTeam on June 10, 2010 making it the sole Southeast Asian carrier to join that airline alliance. During the months of September and October 2010, Vietnam Airlines was slated to manage all the transportation for the Miss World beauty pageant in its capacity as the official airline of the contest, although recent rumours of Vietnam's withdrawal as host have cast doubt on this. Recently, Miss World had decided to hold the contest in Sanya, People's Republic of China.
History
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An ATR 72-500 at the 2009 Paris Air Show. Vietnam Airlines currently
operates 13 of the type, with a further 13 on order. |
Beginnings
Vietnam Airlines can trace its roots back to January 1956, when it was established by the North Vietnamese government after the nationalising of Gia Lam Airport; back then the airline’s name was Vietnam Civil Aviation. It was instituted after the government signed the Decree. 666/TTg. The airline was created as part of the air force, which was to be used for civilian purposes. Its fleet consisted of five aging Soviet-supplied planes — one Ilyushin Il-14, one Antonov An-2 and three Aero Ae-45s; this was because there was an embargo that prohibited the airline leasing and/or buying American technology or components. The airline's development and expansion was seriously hampered by the Vietnam War, which took place from 1954 to 1975.
Following the war, its first international destination was Beijing, followed by Vientiane in 1976. During that year, the airline was known as General Department of Civil Aviation in Vietnam, and began full operations, carrying around 21,000 passengers, of which one-third were on international flights and 3,000 tonnes of cargo. In 1978, another important destination of Vietnam Airlines was added, with flights offered to Bangkok.
During the late 1980s and early 1990s saw the airline expanding its route maps to Hong Kong, Kuala Lumpur, Manila and Singapore. In 1990, Vietnam Airlines initiated discusions regarding the commencement of Western-type aircraft operations. By July the following year, the airline agreed to a wet-lease agreement with Dutch lessor TransAvia. The aircraft involved was a Boeing 737-300, which arrived in Vietnam complete with VNA's livery. The Boeing, however, was returned after the US State Department pressured TransAvia to remove the aircraft from Vietnam. Subsequently, Vietnam Airlines organised a similar but more complicated deal with Swiss charter flights provider TEA Basle, who spent the rest of 1991 negotiating a deal with US authorities. Eventually, a solution was found, which says that the Boeing 737 "must be positioned outside Vietnam, with no logo or lettering of Vietnam Airlines. On these conditions, it could operate on behalf of Vietnam Airlines". In December 1991, Cathay Pacific and Vietnam Airlines agreed on a 50–50 joint venture to operate between Hong Kong and Vietnam. This is because VNA's fleet of Tupolev Tu-134s did not meet Kai Tak Airport's noise restrictions.
In October 1992 the Boeing 737 was complemented by a Airbus A310. However, a dispute with Jes Air of Bulgaria over who should pay for the repairs after the aircraft sustained an engine failure lead to the replacement with another A310 from GATX, again operated by Jes Air. Similarly, a dispute, this time with United Technologies, encouraged VNA to switch from Airbus to Boeing. A Boeing 767-200ER arrived in January 1993, leased from Ansett Worldwide Aviation Services (AWAS), and another 767, series -300ER, arrived the following year from Royal Brunei Airlines. In October, three A320s arrived as a two-year wet-lease contract from Air France. During the previous year, Air France and Vietnam Airlines started discussions about working together – Air France agreed to lease VNA its Airbuses and provide customer support and pilot/crew training. Also, during this time, many more destinations like Paris, Tokyo, Seoul, Taipei, Sydney and Melbourne were added.
New enterprise: 1993 and onwards
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| Vietnam Airlines' former logo. |
In 1993 the airline completed its restructuring programme which had been started four years earlier. The airline split from the Vietnam Civil Aviation Administration to become a state enterprise in 1993. From 1993 to 1996, Vietnam Airlines was known as Civil Aviation Administration of Vietnam. In February 1994, then-US president Bill Clinton lifted the trade embargo to allow Vietnam Airlines the ability to freely acquire Western-built aircraft. Consequently, Vietnam Airlines announced in April of the same year that the airline would be phasing out its inefficient Soviet planes. In 1996, the airline, along with a number of other aviation-related businesses, were incorporated to establish the present Vietnam Airlines Corporation. In September, Vietnam Airlines started offering Business Class services and three years later, on the eve of the second millennium, the airline launched its frequent-flyer program, Golden Lotus Plus. During 1996, Vietnam Airlines looked for aircraft which would substitute the A320s wet-leased from Air France when the deal is over. Apart from acquiring further A320s, the airline considered Boeing 737s and McDonnell Douglas MD-90s. With its freedom to operate Western-built aircraft, Vietnam Airlines considered the acquisition of long-haul aircraft to better service Vietnamese living overseas. The Airbus A340, Boeing 747 and the McDonnell Douglas MD-11 were topics of discussion. Meanwhile, two Fokker 70s were acquired in May and July to replace the twelve Tupolev Tu-134s,
as well as to serve as VIP transport.
During 2002, Vietnam Airlines considered an attractive lease offer from Airbus for two Airbus A340-400s. However, the airline later settled on a four-aircraft direct order from Boeing for the Boeing 777-200ER. On 4 September the following year, a landmark ceremony celebrated VNA's receipt of its first Boeing 777-200ER purchased outright from Boeing. The aircraft, registered as VN-A143, was the first of four 777s ordered by the airline. On 28 October, the airline decided to move its operations from from Sheremetyevo International Airport to Domodedovo International Airport.
On 20 June 2005, the airline launched services to a second German city, with two and one flights between Frankfurt and Hanoi and Ho Chi Minh City, respectively (VNA formerly operated flights to Berlin). It came after the 2004–2005 period when travel between the two countries soared 70 percent.The following year, Vietnam Airlines was admitted into IATA, the biggest aviation association in the world. As part of the move, Vietnam Airlines had to meet the association’s IOSA safety standards.
Recent developments
According to a number of newspaper reports in 2007, the Vietnamese government planned to partially equitize (privatise) Vietnam Airlines. In the plan, the government considered selling 20 to 30 percent of the airline’s stake to outsiders, with the rest retained by the government. This was a small part of a bigger proposal by the government to privatize its state-owned companies, due to be completed by 2010. Vietnam authorized the plan the following year,however, the plan was not carried out as the airline missed its deadline scheduled by the government, which was arranged for 2010, due to the Global Financial Crisis.
During the year 2008, Vietnam was chosen as the host of Miss World’s 60th contest. Naturally, being the host country’s flag carrier, Vietnam Airlines was selected as the sponsoring airline for the contest. As a official airline of the beauty pageant, the airline was tasked the job of managing all the transportation for the contest, to be carried out during the months of September and October before the competition starts. However, Miss World has decided to hold the 60th contest in 2010 in Sanya, People's Republic of China, following speculations of Vietnam withdrawing.
In 2009, Vietnam Airlines (49%), along with the Government of Cambodia (51%), established a joint-venture to boost tourism in Cambodia. The joint-venture is a new Cambodian national airline named Cambodia Angkor Air, which started on 27 July with flights from Phnom Penh to Siem Reap and Sihanoukville using a fleet of two ATR 72s. The two aircraft was later joined by an Airbus A321 in September.
A new bilingual website was launched by Vietnam Airlines on 10 October 2009 to make bookings easier. On 26 August 2010, the airline teamed up with Boeing during the unveiling of its interior modernisation programme in order to increase passenger comfort. From late September to early October, Vietnam Airlines discounted up to 85% of its 90,000 fares to celebrate Thang Long-Hanoi's 1000th anniversary. In November 2010, the airline awarded Honeywell a US$100 million dollar contract to retrofit the Airbus A321s' aircraft flight systems, which is calculated to save Vietnam Airlines US$10,000 per aircraft per year.
Future
A Vietnam Airlines Airbus A330-200 (VN-A371) in SkyTeam livery. Partially obscured by a Boeing 777, the Airbus is seen here at Noi Bai International Airport.
With the arrival of the seventy recently-ordered aircraft for the duration of the next ten years, Vietnam Airlines is considering significantly expanding its route map. The airline is particularly interested in launching services to the U.S., where more than 1.2 million Vietnamese currently reside. Such plans have been confirmed in December 2003, but have since been postponed because Vietnam is not yet part of FAA's aviation safety assessment programme. The airline, however, is expected to launch the service in early 2011. Vietnam Airlines also is working towards launching flights to the Middle East and Indian subcontinent, as well as starting more flights to other destinations in Australia and Europe. During an interview with Sabre Airline Solutions, CEO Pham Ngoc Minh says:
...apart from the United States, we are considering opening new routes such as Ho Chi Minh City/Hanoi, Vietnam–London; Ho Chi Minh City/Hanoi–Shanghai/Beijing, China; Ho Chi Minh City–Mumbai, India; Ho Chi Minh City–Brisbane, Australia; and Ho Chi Minh City–Doha, Qatar.
While the airline had launched flights to Beijing and Shanghai, there are currently no flights to London, Mumbai, Qatar, and Brisbane. The HCM City–London route, however, is planned to commence in late-2011, with preparations now underway to accommodate the airline's aircraft at one of the UK's airlines.
By 2020, VNA plans to increase its revenue to US$7 billion—up from $1.86 billion in 2010—by carrying 620,000 tonnes of cargo and 35 million passengers, using a fleet of 163 aircraft. It aims to capture a market share of 45% of Vietnam's aviation market. During its first 15 years of operation, from 1996 to 2010, Vietnam Airlines carried a total of 82 million passengers on board 678,550 flights.[68] Furthermore, Vietnam Airlines plans to transfer most of its international operations from its current hub, Tan Son Nhat International Airport, to the now-under construction Long Thanh International Airport. With a cost of approximately US$6 billion, the airport will, according to Vietnamese authorities, be a major gateway into Southeast Asia, at the same time helping Vietnam Airlines boost its operations internationally.
In January 2011, plans were announced by the airline to re-initiate an IPO by the end of 2012; an earlier attempt was stalled by the 2007–2010 Financial Crises.
Corporate affairs and identity
Vietnam Airlines
Type Government-owned
Industry Aircraft maintenace and overhaul, catering, cargo and passenger transport
Founded 1996 (with roots tracing back to 1954)
Headquarters Long Bien, Hanoi, Vietnam
Area served Asia, Europe, North America and Oceania
Key people Nguyen Sy Hung (Chairman)
Pham Ngoc Minh (President and CEO)
Nguyen Van Hung (Executive Vice President and Director)
Services Airline services
Employees 9,260
Subsidiaries See below
Vietnam Airlines is a owned by the government of Vietnam.:6 In 2005, it had a workforce of over 14,000 employees, of whom 9,000 worked for the airline. The airline is headed and overseen by a seven-seat management team, members of which are selected by the Prime Minister of Vietnam. Currently, Nguyen Sy Hung is the chairman of the company, with Pham Ngoc Minh being the President and CEO. As of 2010, the airline branch of the corporation has 9,260 employees. Currently the airline is headquartered in the Long Bien district of Hanoi. Previously its headquarters were at Gia Lam Airport in Gia Lam, Hanoi.
Training
According to the Director General of the Association of Asia Pacific Airlines, a trade association of Asian-based airlines, Vietnam’s aviation industry lacks experience in the realm of pilot and crew training. However, Vietnam Airlines is improving, after undertaking plans to train 400 pilots shortly after 2000.
Transportation of dangerous goods, cabin crew training, CRM (crew-resource management) and pilot training are all safety enhancing programs taught to airline personnel. New Vietnamese pilots are assigned as Western-type aircraft co-pilots. All pilots—both national and foreign—receive biannual simulator training and periodic line checks by Western pilots. A Hanoi-based Airbus cabin mock-up is specifically used for smoke and evacuation training.
The Civil Aviation Authority of Vietnam signed a contract with Sofréavia of France to set up a pilot training school in the central province of Phu Yen in late 1998. To date, this has not been completed. Only 40 percent of Vietnam Airlines’ aircraft are captained by Vietnamese citizens, all of whom are required to attend training programs abroad. Many pilots have received training at the Flight Training Adelaide in Adelaide, Australia.
In October 2010, the airline and Bay Viet Flight Training Joint-Stock Company agreed to train 60 pilots in Vietnam during the 2011–2012 period. As of 2010, Vietnam Airlines needed 636 pilots, 60% of which are Vietnamese. By 2015, Vietnam Airlines plans to raise that figure it by 75%, meaning there will be at least 100 new recruits each year from 2010 until 2015.
Financial performance
Pham Ngoc Minh, President and CEO of Vietnam Airlines during the World Economic Forum in Ho Chi Minh City.
Vietnam Airlines has enjoyed good growth at an average of 37 percent increase in passengers flown per year until 1997, when the Asian Financial Crisis and other contributing causes led to a loss in profits for the airline. Nevertheless, the airline remained profitable throughout the crisis. In 1996, the airline carried 2.5 million passengers, up 18% from 1995 – 1996 and 1997, the airline posted profits exceeding US$100 million each year. In 1998, the airline saw its profit shrink to approximately US$7 million. Profits increased to US$59 million in 1999.
Following the September 2001 attacks on the United States, at a time when many airlines were struggling, Vietnam Airlines saw a spike in passenger revenues. The airline carried more than 4 million passengers in 2002, which is an 18 percent increase over the previous year. Its cargo traffic also climbed 20 percent during the same period, resulting in a 2002 profit of US$35.77 million.
Despite the Severe Acute Respiratory Syndrome outbreak, the airline posted a US$26.2 million profit for 2003. In 2006, it carried 6.8 million passengers (3.7 million international) and earned revenue of nearly US$1.37 billion (first 11 months). Vietnam Airlines carried more than 8 million passengers, of which 3.3 million were international travellers in 2007, the year which saw the airline earning a gross profit of US$23 million. It also transported 115,100 tonnes of cargo. In 2009, the airline's revenue was US$1.3 billion, compared to US$1.56 billion it earned the previous year. During this period, Vietnam Airlines carried 9.3 million passengers. According to Anna.Aero, Vietnam Airlines’ passenger capacity for 2010 has risen 30 percent over the same period of the previous year. This also coincides with the increase in capacity at Vietnamese airports, at 21%.
Vietnam Airlines holds about 40 percent of the market share of international tourists flying to and from Vietnam. This is significant because Vietnam Airlines receives two-thirds of its profits from international passengers. Domestically, Vietnam Airlines and its subsidiary VASCO has an 80% share of the aviation market, with the rest covered by Jetstar Pacific.
Subsidiaries
A Vietnam Airlines Boeing 777-200ER being catered by Vietnam Air Caterer at Tan Son Nhat International Airport
Noibai Airport Service Joint-stock Company (NASCO)
Vietnam Air Petrol Company (VINAPCO)
Vietnam Airlines Aviation Printing Joint-Stock Company (AVIPRINT)
Middle Airport Service Company (MASCO)
Noibai Cargo Terminal Service (NCTS)
Air Service Supply Join-Stock Company (AIRSERCO)
General Aviation Import-Export Join-Stock Company (AIRIMEX)
Company Type Principal activities Incorporated in Group's equity shareholding
Vietnam Airlines Engineering Company (VAECO) Subsidiary Aircraft maintenance Vietnam 100%
Vietnam Air Service Company (VASCO) Subsidiary Passenger transport Vietnam 100%
Cambodia Angkor Air Joint venture Passenger transport Cambodia 49%
Noibai Catering Services Join-Stock Company Subsidiary Catering Vietnam 100%
Vietnam Air Caterer Joint venture Catering Vietnam 65%
Vietnam Air Leasing Company (VALC) Joint venture Aircraft leasing Vietnam 20%
Aircraft maintenance and production
Vietnam Airlines is increasingly becoming more involved in the maintenance, overhauling and production of aircraft. Current maintenance works are carried out by Vietnam Airlines Engineering Company.
As of 1 May 1992, Vietnam Airlines began conducting its own western-built aircraft repair and maintenance, starting with French-Italian turboprop ATR-72. Vietnamese technicians have since conducted repairs and maintenance of Boeing 737, Airbus A320, and Fokker 70, and began maintenance checks on the Boeing 767 in 1999, Boeing 777 aircraft in 2002.
Starting from 1 January 2009, Vietnam Airlines Engineering Company (VAECO) was established. VAECO was organized based on A75, A76 main bases and Da Nang technical department. The VAECO is taking responsibility for maintaining and technical services for Vietnam Airlines’ aircraft and the other airlines. This establishment opens a new era of aircraft maintenance field in Vietnam. At present, VAECO is capable of performing a wide range of maintenance on many different aircraft types, including: line maintenance on the A300; A checks for the Boeing 767 and Airbus A330; C checks on the ATR 72, Airbus A310/A320/A321 and the Boeing 777; D checks, the most thorough of all maintenance procedures, is carried out on the Fokker 70.[88] VAECO in the near future plans to become the reliable aircraft MRO service provider in Southeast Asia.
Scheduled maintenance intervals are relatively conservative and follow the manufacturers' recommendations. Major engine and propeller maintenance is contracted to qualified overseas maintenance facilities, although a shift to performing more maintenance in-house is currently taking place. There have been no serious maintenance discrepancies with Vietnam Airlines in its history. Maintenance of Vietnam Airlines has been rated as one of the best in the world, and has passed many audits by competent regulatory bodies—including IOSA—without any remarkable findings.
In addition to its self maintenance facilities, Vietnam Airlines also has maintenance contracts with Air France, AMECO of China, China Airlines, Evergreen Aviation Technologies, GAMECO, Hong Kong Aircraft Engineering Co, Lufthansa AERO, MTU Maintenance Hanover, Royal Brunei Airlines, Safe Air of New Zealand, and TAT Industries of France.
There are currently no production facilities in Vietnam for aircraft and aircraft parts. However, Boeing has managed to obtain 35 per cent of the distribution market in Vietnam, and General Electric, in turn, supplies jet engines for the Boeing aircraft. For the future, conversely, Vietnam Airlines is planning to build a maintenance factory in conjunction with Rolls Royce and other campanies. It has also signed an MoU with European Aeronautic Defence and Space Company (EADS), which would let the corporation assemble and manufacture plane components in the future.
Destinations
Vietnam Airlines destinations
Destinations served and operated by Vietnam Airlines (as of December 2010).
We intend to open our direct flight from Vietnam to west coast America. Our priority is Ho Chi Minh City to Los Angeles. The reason we postponed it is because of the market conditions. But we keep open our plan.
Pham Ngoc Minh, CEO of VNA Interview: Pham Ngoc Minh, Vietnam Airlines
Vietnam Airlines has an extensive network throughout East Asia, Southeast Asia, Europe and Oceania. With more than 290 daily flights, the airline flies to 20 destinations domestically, and to another 28 internationally. In addition, it has codeshare agreements with a number of airlines for 16 other routes, some of which span to North America. Recently, the airline has announced that it would open new routes to Can Tho, Vietnam and to Shanghai, People’s Republic of China,[94] with the commencement date scheduled on 28 and 29 of March 2010, respectively. Direct services to the Americas are contingent on the arrival of Vietnam Airlines' state-of-the-art Boeing 787-9 Dreamliner, but could happen with the Boeing 777 in early 2011.
Vietnam Airlines also announced that they are considering daily flights to both Melbourne and Sydney in 2011 using Airbus A330 aircraft.
Tết (Lunar New Year) flights
Vietnam Airlines traditionally increase flights between Vietnamese cities to cater for the heavy demands brought by the annual Tết (Lunar New Year) celebration. This busy period, which could fall anywhere from late-January to -mid-February, is Vietnam's most important celebration; hundreds of extra flights are scheduled by domestic airlines during this period to allow Vietnamese to return to their families, often in the rural ares, to celebrate to occasion. In 2010, the 562 extra flights of the Ho Chi Minh City–Hanoi trunk route increased capacity by 45% to 85%. The 288 extra flights between the country's commercial hub and Da Nang increase capacity by 65% to 120%. From 18 January to 20 February 2011, VNA increased additional flights on 10 routes, adding more than 100,000 seats. More than half of these seats, about 63,000 (307 flights), were be between the country's capital and HCMC. This represents a remarkable 41% increase against normal days.
Alliance
Vietnam Airlines is currently a member of SkyTeam and codeshares with most SkyTeam members. Vietnam Airlines also has codeshares with four current Oneworld members – American Airlines, Cathay Pacific, Japan Airlines, and Qantas – and is part of Cathay Pacific's Asia Miles program. In April 2010, the airline struck a deal with the Air France division of Air France-KLM Group, which will see Vietnam Airlines flying to Paris using the Air France’s AF flight code. Vietnam Airlines joined SkyTeam on June 10, 2010.
“ We believe that the cooperation among SkyTeam member airlines will facilitate the expansion of flight network, the sharing of experiences and the application of advanced technology. ”
—President and Chief Executive Pham Ngoc Minh
Codeshare agreements
As of March 2011, Vietnam Airlines has codeshare agreements with the following airlines:
Air France (SkyTeam)
Alitalia (SkyTeam)
Cathay Pacific (Oneworld)
Cambodia Angkor Air (affiliate)
China Airlines (SkyTeam - future)
China Southern Airlines (SkyTeam)
Czech Airlines (SkyTeam)
Delta Air Lines (SkyTeam)
Garuda Indonesia (SkyTeam - future)
Japan Airlines (Oneworld)
KLM (SkyTeam)
Korean Air (SkyTeam)
Lao Airlines
Philippine Airlines
Qantas (Oneworld)
VASCO (subsidiary)
In addition, Vietnam Airlines has interline agreements with many other airlines, such as Belavia of Belarus,[113] S7 Airlines of Russia,[114] and Virgin Blue of Australia, Malaysia Airlines, etc. Also, following Vietnam Airlines' entry into SkyTeam on June 10, 2010, it codeshares with other SkyTeam members.
Vietnam Airlines and Japan Airlines are currently codesharing on routes between Vietnam and Japan. The tails of the two carriers are seen here at Narita International Airport.
Fleet
Passenger
A Vietnam Airlines Airbus A320 S7-ASI ready to take off at Fukuoka International Airport, sporting a slightly modified livery celebrating the 2003 SEA Games.
Vietnam Airlines' 10 Boeing 777-200ERs are the airlines' flagship carriers
Vietnam Airlines currently operates a mixed fleet of sixty leased and brand new turboprops and jet airliners, with European aircraft making up most of the fleet, with the rest being American. Prior to the lifting of the trade embargo between the U.S. and Vietnam by former president Bill Clinton in 1994, the airline primarily flew Soviet airplanes.
The airline started out with five Soviet airplanes. During its early days, it wasn’t able to use American airplanes due trade embargo against Vietnam. In 1992 Vietnam airlines acquired a number of Boeing 737s and Boeing 767s by chartering the planes, instead of leasing or buying them. Later, the airline purchased two 80-seat ATR-72s, made by the French company Avion de Transport Régional. Following the crash of the airline’s Tupolev Tu-134 at Phnom Penh in 1997, it has undergone a fleet replacement, retiring the old Soviet planes and replacing them with newer Airbus and Boeing aircraft.
As of March 2011, Vietnam Airlines operates a fleet of 66 aircraft with an average age of 7.1 years:
Vietnam Airlines fleet
Aircraft Total Orders Passengers Deliveries
Retirement Routes Notes
C Y+ Y Total
Airbus A320-200 10 — 0 0 162 162 Short- and medium-haul international and domestic
12 138 150
Airbus A321-200 21 28 16 0 168 184 2008-2011
16 in 2010 Short- to medium-haul international and domestic
Airbus A330-200 9 — 24 0 242 266 Medium-haul international and domestic AVOD in-flight entertainment
one aircraft painted in SkyTeam livery
Airbus A330-300 1 — 36 0 284 320 Medium-haul international and domestic
Airbus A350-900 — 12 TBA 2014 Long-haul international
Airbus A380-800 — 4 TBA 2015 Long-haul international Memorandum of understanding with Airbus signed in November 2009; may change to the -900 version
ATR 72 13 11 0 0 66 66 Short-haul international and domestic
Boeing 777-200ER 10 — 25 54 228 307 Long-haul international and domestic
35 0 290 325
32 0 306 338
Boeing 787-8 — 8 TBA N/A Long-haul international To be leased from VALC
Boeing 787-9 — 8 TBA 2015Long-haul international Originally 787-8 models, but changed to -9 in June 2010
Fokker 70 2 — 0 0 79 79 2012 Short-haul international and domestic Replacement aircraft: Airbus A321
Total 66 71 Three a/c (1 one Airbus A321-200 and 2 ATR 72s) are leased to Cambodia Angkor Air These aircraft are not included in fleet.
Modernization
In the wake of the 1997 crash in Phnom Penh, Vietnam Airlines began a fleet replacement programme, retiring its second-hand Boeing 767s and phasing out all of its Soviet-built airliners, replacing them with newer Western-built aircraft.
In December, 2001, Vietnam Airlines signed a historic agreement with Boeing. It ordered its first ever US-built aircraft, signalling the start of trade under the Bilateral Trade Agreement between the two countries. The airline ordered four Boeing 777-200ERs, which were delivered in 2003. The four aircraft, as well as six other Boeing 777s leased from International Lease Finance Corporation (ILFC), are the flagships of the airline, and are deployed mainly on long-haul flights to Australia and Europe, as well as flights between the airline’s hubs.
The two Fokker 70 are currently the oldest aircraft still flying with the airline.
In September 2005, Vietnam Airlines ordered eight Boeing 787-8 aircraft and 10 Airbus A321-200s for deliveries starting from 2009. These new aircraft were to allow Vietnam Airlines to expand its network and replace some leased aircraft.However owing to delays in the 787 program, Vietnam Airlines has only received the A321s. Regarding the delays from Boeing, Vietnam Airlines CEO Pham Ngoc Minh noted, "We are not happy about the constant delays. It affects our business plan." In 2010 the airline changed its Boeing 787 order to the -9 model, stating that the 787-8s didn't meet all the requirements Boeing initially promised. The airline is now expected to receive its aircraft starting from 2015.
On 1 October 2007, Vietnam Airlines and Vietnam Aircraft Leasing Company signed an MOU for the purchase of 10 Airbus A350s, and an additional 20 Airbus A321s. The Airbus A350s will supplement the Boeing 787s already ordered by the airline. This single order will result in Vietnam Airlines becoming one of the largest Airbus operators in Asia. The two companies also ordered 5 extra ATR 72-500s. Two years later the airline signed another deal for sixteen extra Airbus A321s and two Airbus A350s during the 2009 Paris Air Show.
Later in 2009 Vietnam Airlines signed an MOU with Airbus, confirming its negotiations to order four Airbus A380s. With this deal, the airline became the first new customer for the type since 2006. According to Vietnam Airlines, these aircraft will allow Vietnam Airlines to expand its services into North America, as well as launch its Intercontinental First Class cabins. Vietnam Airlines is particularly interested in a higher-weight variant of the A380-800 that is currently under development.
Cargo
Vietnam Airlines Cargo is the air freight division of Vietnam Airlines, providing cargo service to destinations in Asia, Europe, North America and Oceania, through their own network as well as partners' networks. The division has the number of following aircraft:
Vietnam Airlines A330-200, used for passenger and cargo services.
Vietnam Airlines Cargo Fleet
Aircraft Total Order Notes
Airbus A300 3 — Freight capacity: 13 tonnes
Airbus A320 family 2 — VNA's passenger aircraft's cargo holds
Freight capacity: 2.5 tonnes
Airbus A330 2 — VNA's passnger aircraft's cargo holds
Freight capacity: 15 tonnes
Boeing 777-200ER 3 — VNA's passnger aircraft cargo holds
Freight capacity: 13–17 tonnes
Previously operated
Since its conception in 1956, the airline has operated a wide range of aircraft. This varies between Russia, American, and European airplanes. However, the airline currently only utilises American Boeings, and European ATRs, Airbus’s and Fokkers, retiring and scrapping the unreliable Soviet made planes, because they were involved in all of the airline’s crashes. However, one Tu-134 and Ilyushin Il-18 have been retained as possible future museum exhibits, and are presently parked at the apron of Noi Bai International Airport.
Below is a list of retired Vietnam Airlines airplanes (with the number of aircraft in brackets):
Antonov An-2 (1)
Antonov An-24 (unknown)
Aero Ae-45 (3)
Airbus A300-200 (2)
Airbus A310-200 (2)
Boeing 737-300 (5)
Boeing 767-300ER (23)
Douglas DC-3 (unknown)
A Vietnam Airlines Boeing 767 in old livery.
Ilyushin Il-14 (1)
Ilyushin Il-18 (unknown)
Tupolev Tu-134 (12)
Yakovlev Yak-40 (unknown)
Services
Entertainment
A wide range of entertainment is offered on Vietnam Airlines flights, including movies, video games, music, newspapers and magazines. On long-haul international flights served by some Boeing 777-200ERs, seats in all cabin classes are equipped with Audio Video on Demand (AVOD) in-flight entertainment via personal televisions. Vietnam Airlines offers two in-flight magazines, Heritage and Heritage Fashion, on board both domestic and international flights.
Cabins
Business
Business class is the highest of three cabin classes offered by the airline. Introduced in 1996, the cabin is available on most of Vietnam Airlines’ route network. As is the case with business class cabins in most airlines, the amenities offered in this class are substantially different from economy class, and more services and products are available, either for purchase or free of charge.
On Boeing 777s, business class seats are 61.3 centimetres (24.1 in) wide with 150 centimetres (59 in) of leg room – 69 centimetres (27 in) more than in economy class), and are able to recline with a pitch of 150°. Laid out in a 2–3–2 configuration, each seat is equipped with lumbar support and a 10.4 in. personal touch screen, capable of delivering AVOD. Noise-cancelling headphones are offered on selected Boeing 777 flights. On international flights, newspapers magazines from around the world, such as The Times and Newsweek are offered free of charge. Hot meals are offered on flights lasting longer than two hours; on board flights to and from Australia, Europe, Korea and Japan, meals generally offer a combination of Eastern and Western cuisines. Wines and spirits, as well as other drinks and beverages, are on offer as well.
Deluxe Economy
Deluxe economy, Vietnam Airlines’ equivalent of premium economy, has a wider seat width and legroom compared to Economy at 97 centimetres (38 in) (40 in.), and is laid out 3–3–3. This class is offered only on selected Boeing 777 flights. On flights over 90 minutes, snacks are served; on 2-hour plus flights, as in business class, hot meals are served.] Fruit juices, coffee, beverages and tea are also served.
Economy
Economy class is available on all flights operated by Vietnam Airlines. Seats in this cabin feature seats ranging from 20 inches (51 cm) (Airbus A330) to 20.9 inches (53 cm) (Boeing 777) in width. Seat pitch on this cabin class is 31–32 inches (79–81 cm) 31–32 in., while seat recline is from 6–13. Like Deluxe Economy, snacks are served on flights over 90 minutes, with hot meals available on flights that are 2 hours or more. Like the two other cabin classes, beverages, fruit juices and tea are served, but the range on offer is smaller.
Economy aboard Vietnam Airlines' Boeing 777-200ER
Lounges
Vietnam Airlines offers the use of business lounges to VIPs, business class travellers and Golden Lotus Plus Gold members. Passengers using these lounges are entitled to such amenities as free wireless internet, shower facilities and bar services. In addition, private suites are available, enabling users to work quietly, and food services are free. On code-share flights, lounges of other airlines are used.
The following airports have business lounges provided either by Vietnam Airlines or by code-share partners:
Beijing Capital International Airport (Air China)
Charles de Gaulle International Airport
Chubu Centrair International Airport (Japan Airlines)
Da Nang International Airport
Domodedovo International Airport
Frankfurt am Main Airport
Fukuoka International Airport
Gimhae International Airport
Guangzhou Baiyun International Airport (China Southern Airlines)
Hong Kong International Airport (Cathay Pacific)
Incheon International Airport
Kansai International Airport
Kaohsiung International Airport
Kunming Wujiaba International Airport (China Eastern Airlines)
Long Thanh International Airport (future hub—2015)
Melbourne Airport (Qantas)
Narita International Airport
Noi Bai International Airport (hub)
Phnom Penh International Airport
Suvarnabhumi Airport
Siem Reap International Airport
Singapore Changi Airport
Sydney Airport (Qantas)
Taiwan Taoyuan International Airport
Tan Son Nhat International Airport (hub)
Loyalty programme
Vietnam Airlines has been offering Golden Lotus Plus, a frequent-flyer and loyalty programme, to its customers since 1999. It has four levels: Platinum, Gold, Titanium, and Silver. Members receive benefits according to the level in which they belong to. As of 2010, the programme has roughly 250,000 members.
Golden Lotus Plus Tiers
Tier Level Benefits Requirements SkyTeam Status
Silver
Priority on waiting-list
Arrangement priority in case of flight irregularities
Award ticket for member
Upgrade award for member
Excess baggage award for member
1 qualifying mile
Be a Vietnam Airlines–American Express—Vietcombank credit card holder or be a Vietnam Airlines—Techcombank—Visa credit card holder
—
Titanium
Receive all the benefits of Silver tier
Guaranteed Economy Class seats on VNA international flights
Guaranteed Economy Class on VNA domestic flights between HAN, DAD and SGN
Exclusive check-in counters
Priority baggage tags
Extra baggage allowance (+10kg)
Priority to free upgrade to Business class1
Priority boarding
Extra accumulation miles (10%)1
15,000 qualifying miles
20 eligible flights
Elite
Gold
Receive all the benefits of Titanium tier
Business Class counter access for people in the Redemption group using award tickets and traveling with member in the same flights
Extra baggage allowance (+15kg)
Free upgrade to Deluxe Economy
Business Class Lounge access at airport
Award ticket for people registered in the Redemption Group
Upgrade award for people registered in the Redemption Group
Free ticket for infant under 2 years old1
Extra accumulation miles (30%)1
30,000 qualifying miles
30 eligible flights
Elite
Platinum
Receive all the benefits of Gold tier
Extra baggage allowance (+25kg)
Business Class Lounge access at airport, with one invited guest
Extra accumulation miles (50%)1
50,000 qualifying miles
50 eligible flights
Elite Plus
Incidents and accidents
Accidents and incidents involving Vietnam Airlines
Vietnam Airlines has experienced three fatal and several non-fatal incidents in the last 22 years. All fatal incidents have involved Soviet made aircraft that have since been phased out of service. These incidents occurred on final approach or landing, and all three fatal crashes occurred in driving rain. Vietnam Airlines has recorded two hijackings.
