Hanoi, January 10th, 2018 – Utilizing the advantage brought by Vietnam’s stable macro-economic development and good growth of tourism, and adopting assertive management solutions and flexibility in overcoming challenges, Vietnam Airlines has excellently completed its planned focus targets in 2017 and gained remarkable achievement in various areas.
Outstanding growth in revenue and profit
In 2017, Vietnam Airlines and its member airlines (including Jetstar Pacific and VASCO) provided nearly 180,000 safe flights, transported 26.5 million customers, which increased by 6.7% compared to the previous year. The volume of air freight transportation was estimated at 343,000 tons, which increased by 19% compared to the figure for 2016. Its average domestic market share reached 60%, and its intenational market share reached 32.3%.
Vietnam Airlines’ total consolidated revenue was estimated at VND88,400 billion; its consolidated pre-tax profit reached the highest peak of over VND2,800 billion, with an exceeding of 72% compared to the planned target and an increase of 8.3% compared to the same period last year. Of which the Parent company’s was estimated to reach VND66,200 billion in total revenue and VND1,850 billion in total pre-tax profit, which increased by approximately 50% compared with the planned figure and 8% compared to 2016. Its contribution to the State budget nearly doubled, with an exceeding of VND1,900 billion compared to the planned target.
The above impressive achievement of Vietnam Airlines has been led by its direction for development of modern aircraft, extensive flight networks, continuous improvement of its services, strengthening of bilateral and multilateral cooperation, and trading promotion.
Remarkable achievements in equitization of the Parent Company
In January 2017, more than 1.2 billion HVN shares of Vietnam Airlines were transacted on UpCOM, marking the event on which Vietnam Airlines became a large-scale public company with its market capitalization among the top companies. By the end of 2017, HVN reached the highest peak of VND42,000 per share, which increased by 60% compared with its starting price. Vietnam Airlines is expected to have its shares listed on Ho Chi Minh City Stock Exchange (HOSE) with a greater transaction scope in the second quarter of 2018, and to continue issuing more shares to existing shareholders to increase its chartered capital and reduce the state ownership ratio.
On-time Performance (OTP) in the world’s leading group
The 2017 OTP exceeded its target, especially the departure OTP reached an average rate of over 90%, bringing Vietnam Airlines into the world’s leading group of airlines with the highest OTP. Particularly, its OTP has always been maintained at a high level throughout the year, even during high seasons. Its ensurance of maximum security, safety and technical requirements have always been strictly implemented on each flight. Aircraft operational readiness rates reached an average of 94%.
Development of state-of-the-art fleet
The year 2017 marked the next impressive progress of Vietnam Airlines in fleet development, including the four Airbus A350-900 XWBs and one Boeing 787-9 Dreamliner, increasing the total number of these aircraft to 10 Airbus A350-900 XWBs and 11 Boeing 787-9 Dreamliners. The new widebody aircraft have been operated on the Hanoi-HCMC route and important international flight routes to Europe, Northeast Asia and Australia, contributing to Vietnam Airlines’ continued improvement of 4-star international service quality. Vietnam Airlines’ roadmap for upgrading narrow-body aircraft was also marked by significant progress, namely a contract with the Aviation Capital Group (ACG) on a long-term lease of six A321neos, a contract on buying and maintaining A321neo engines costing US1.5 billion with Pratt & Whitney signed within the framework of US President Donald Trump’s visit to Vietnam in November 2017.
Continuous improvement of service quality
Vietnam Airlines has been maintaining its status as the 4-star international airline in two consecutive years according to Skyrax standards. Vietnam Airline has launched its 24/7 Customer Service Centers, providing notable services with a high level of personalisation. Meanwhile, by operating its new Lotus lounges at Noi Bai Airport and Tan Son Nhat Airport, Vietnam Airlines has strengthened its synchronized service chain, bringing its customers more comfort and convenience. As a result, its Net Promoter Score index exceeded 1.7 point compared to its planned target.
Vietnam Airlines’ recognized leading role and position as a National airline
Vietnam Airlines is always aware of its responsibility as a national airline during the process of integration and development. As the official transporter for APEC 2017, Vietnam Airlines provided nearly 110 additional flights to Da Nang (equivalent to 20,000 seats) to meet the increased traveling needs during the course of the event. Safe flights with great services provided by Vietnam Airlines have left a distinguishing mark, contributing to the announcement of the country’s and its people’s professional and friendly image in the eyes of international friends. Vietnam Airlines’ positive contribution has been recognized as a “Special Sponsor for APEC Vietnam 2017” by the National Committee for APEC 2017.
Over 200 million passengers transported in over 22 years
In the period of 1995-2017, Vietnam Airlines served more than 200 million passengers. The total revenue reached over VND777,000 billion in over 22 years, marking an average annual growth rate at 15.62%; a total pre-tax profit of approximately VND18,000 billion, indicating continuous profit. This result has recognized Vietnam Airlines’ leading role as a National airline in Vietnam’s economic development, and its role as an efficient trading-cultural-political connection between different areas in the country, as well as between Vietnam and the world.
Cooperation for diversification of products
Vietnam Airlines has continued its close partnership with Jetstar Pacific in terms of producs, resources and brands in order to strengthen the security of its flight networks and enable the diversification of its products. The most remarkable product is the joint flight schedule among the country’s three largest cities, in which one flight takes off every 30 minutes in Hanoi-HCMC route, and the flight schedule meets the customers’ diversified needs on Hanoi/HCMC-Da Nang.
Large-scale cooperation agreements have been signed with international airlines, such as a comprehensive joint venture contract with Air France (France), a codeshare contract with Bangkok Airways (Thailand), an agreement with LOT (Poland), etc., leading to additional options for customers and strengthening Vietnam Airlines’ competitiveness in the international market.
International and national prestigious awards received
Vietnam Airlines’ efforts to enable innovation and development have been recognized by international and national communities through a series of prestigious awards. Vietnam Airlines was honorably awarded the “Asia Pacific Airline of the Year” by the Center for Asia Pacific Aviation (CAPA); “World’s Leading Airline – Premium Economy Class” and “World’s Leading Cultural Airline” by World Travel Awards. Vietnam Airlines is also one of the 15 top brands holding the highest value in Vietnam as released by Forbes Vietnam; one of the 10 top ASEAN companies proving their efficient performance in China as voted by the ASEAN-China Business Council (CABC). Highly successful brand building and brand development has been reflected by increasing brand valuation, in which Vietnam Airlines has been promoted by three levels to AA level by Brand Finance, making Vietnam Airlines one of the top 10 strongest brands and the most improved brand strength (BSI) in 2017 in Vietnam.
An effort to develop community programs
Undertaking a mission to contribute to the development of the whole society, Vietnam Airlines has been running a campaign called “Flights of Love” with various meaningful activities with the goal of helping the communities in need. On the 2017 Mid-Autumn Festival, Vietnam Airlines coordinated with social enterprises to bring disadvantaged artists’ handcrafted products to its passengers. On another activity, children’s dream of experiencing the jobs of flight attendants, pilots, aviation engineers, etc., have been heard and granted. Gratitute activities and philanthropic activities that supported people in areas affected by storms and floods and people with poor living conditions have been regularly conducted by Vietnam Airlines, aiming at development and communication of great values in the community.
Turning to 2018, the international air transport market is expected to grow rapidly, with domestic market growing at a relatively high rate. Vietnam Airlines is going to focus on ensuring maximum security and flight safety; applying latest technology; improving its aircraft maintenance capacity; and proactively enabling its expansion and promoting its partnerships with major airlines. Fleet development and flight network expansion are Vietnam Airlines’ strategic priorities in 2018, with a plan to buy new aircraft Airbus A350-900, A321neo, as well as complete its fleet development plan for the 2021-2025 period with a vision towards 2030. The airlines will continue its research on a plan to open a direct flight to the United States.