Vietnam Airlines
Template:Short description Template:Distinguish Template:Good article Template:Use Oxford spelling Template:Use dmy dates Template:Infobox airline
Vietnam Airlines (Template:Langx) is the flag carrier of Vietnam.<ref name="Vmain" /> The airline was founded in 1956 and later established as a state-owned enterprise in April 1989. Vietnam Airlines is headquartered in Long Biên district, Hanoi, with hubs at Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in Ho Chi Minh City. The airline flies 117 routes across 19 countries, excluding codeshared services.<ref name="cha"/>
From its inception until the early 1990s, Vietnam Airlines was a minor carrier within the aviation industry as it was hampered by a variety of factors including the socio-economic and political situation of the country. With the government's normalization of relations with the United States, the airline could expand, improve its products and services, and modernize its ageing fleet. In 1996, the Vietnamese government brought together 20 service companies to form Vietnam Airlines Corporation, with the airline itself as the centrepiece. In 2010, the corporation was restructured into a limited liability company and renamed Vietnam Airlines Company Limited. A seven-seat management board, appointed by the Vietnamese Prime Minister, oversees the company.<ref name="JSTOR_2000" />
As passenger transport constitutes its core activity, Vietnam Airlines plays a crucial role in the economic development of the country. It owns 100% of Vietnam Air Service Company – a regional airline in southern Vietnam and almost 99% of the low-cost carrier Pacific Airlines.<ref>Template:Cite web</ref> In addition, the corporation earns revenue from airline catering and the maintenance and overhauling of aircraft through a number of its subsidiaries, including Vietnam Airlines Engineering Company and Vietnam Airlines Caterers. The company has also diversified its investments in the aircraft-leasing and airport ground-servicing industries, and is looking to manufacture aircraft components. It controls and operates a cargo division, Vietnam Airlines Cargo.
Vietnam Airlines became a member of SkyTeam in June 2010, making it the first Southeast Asian carrier to have joined that alliance. Template:As of the State's stake in Vietnam Airlines is 86.34% and All Nippon Airways holds 5.62%, being a strategic shareholder of the national flag carrier.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
History
Beginnings
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Vietnam Airlines has its origins in January 1956,<ref name="vietnam-airlines-1" /><ref name="class" /> when it was established by the North Vietnamese government under the name Vietnam Civil Aviation (Template:Langx) following the nationalization of Gia Lam Airport. It was instituted after the government signed Decree No. 666/TTg.<ref name="nguyen_chi" /> Under the designation 919th Transport Air Force Regiment (Template:Lang),<ref name=":0">Template:Cite web</ref> the airline was created as part of the air force for civilian purposes with support from both the Soviet Union and China; initially, its fleet consisted of two Lisunov Li-2s that were later replaced by two Ilyushin Il-14 and three Aero Ae-45s.<ref name="L'av" /> This was due to an embargo that prohibited the airline from leasing and/or buying American technology or components.<ref name="Ghosts" />
The airline's development and expansion was seriously hampered by the Vietnam War (1955–1975).<ref name="Catching up" /> Following the war, its first international destination was Beijing, followed by Vientiane in 1976.<ref name="VNA_History" /> During that year, the airline was known as General Department of Civil Aviation in Vietnam, and began full operations; it carried around 21,000 passengers, one-third of whom were on international flights, and Template:Convert of cargo.<ref name="vietnam-airlines-1" /> In 1978, another important destination of Vietnam Airlines was added, with flights offered to Bangkok.<ref name="VNA_History" /> The late 1980s and early 1990s saw the expansion of the network to Hong Kong, Kuala Lumpur, Manila and Singapore.<ref name="VNA_History" />
In 1990, the company initiated discussions regarding the incorporation of Western-built aircraft into the fleet.<ref name="Last" /> Later that year, however, the carrier had to cancel the acquisition of two Airbus A310s due to their use of US-manufactured engines.<ref name="FI1990-4" /> By July 1991, the airline struck a wet-lease agreement with Dutch lessor TransAvia. The aircraft involved was a Boeing 737-300, that arrived in Vietnam Airlines' livery. However, the aircraft was returned after the U.S. State Department pressured the Dutch lessor to remove the aircraft from Vietnam. Subsequently, Vietnam Airlines organized a similar but more complicated deal with TEA Basle, who spent the rest of 1991 negotiating a deal with US authorities. Eventually, a solution stating 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" was reached.<ref name="Last" />Template:Rp In December 1991, Cathay Pacific and Vietnam Airlines agreed on a 50–50 joint venture to operate between Hong Kong and Vietnam, as the airline's Tupolev Tu-134 fleet did not meet Kai Tak Airport's noise restrictions.<ref>Template:Cite journal</ref>
In October 1992, the Boeing 737 was supplemented with an Airbus A310.<ref name="Last" />Template:Rp However, a dispute with Bulgarian Jes Air over who should pay for the repairs after the aircraft sustained an engine failure led to its replacement with another A310 from GATX, also operated by Jes Air.<ref name="Last" />Template:Rp A similar dispute with United Technologies encouraged the airline to switch from Airbus to Boeing. Hence, a Boeing 767-200ER, leased from Ansett Worldwide Aviation Services (AWAS), arrived in January 1993, and a Royal Brunei Airlines Boeing 767-300ER, arrived the following year.<ref name="Last" /> In October 1993, the first Airbus A320-200 was incorporated over a two-year wet-lease contract with Air France.<ref name="FI1994-9" /> Vietnam Airlines by now had started discussions with Air France about a partnership, and the French carrier agreed to lease its Airbuses to Vietnam Airlines, and also to provide customer support and pilot/crew training.<ref name="Catching up" />Template:Rp<ref name="Last" /><ref>Template:Cite news</ref> By that time the route network had further expanded internationally, seeing the incorporation of destinations such as Paris, Tokyo, Seoul, Taipei, Sydney, and Melbourne.<ref name="VNA_History" /> In 1993, the airline carried 1.06 million passengers, 418,000 of whom were on international flights.<ref name="VNA_1991-2001_pax" />
New enterprise: 1993–2006
The airline became the flag carrier of Vietnam in 1993, after having completed a restructuring programme that was started four years earlier. In that year, the airline split from the Civil Aviation Administration of Vietnam (CAAV) and became a state enterprise.<ref name="JSTOR_2000" /><ref name="Catching up" />Template:Rp<ref>Template:Cite web</ref> The move was similar to the reorganization of the Chinese CAAC Airlines into several regional airlines in 1987. Even though the airline gained some independence from the CAAV, it was still known as Civil Aviation Administration of Vietnam within the 1993–1996 period.<ref name="Last" /> Also from 1993 to 1995, the 919th Air Force Regiment was eventually re-established as the Flight Crew Division 919 (Template:Lang) - the designation that is still being used by the Vietnam Airlines and its personnel until today - marking the carrier's full transformation from a nominal military unit into a wholly civilian and commercial operator.<ref name=":0" /><ref>Template:Cite web</ref>
In February 1994, US President Bill Clinton lifted the trade embargo to allow Vietnam Airlines the ability to acquire Western-built aircraft.<ref name="Last" />Template:Rp Consequently, Vietnam Airlines announced in April of the same year that it would be phasing out its inefficient Soviet planes.<ref name="FI1994-9" /> By April 1995, the fleet consisted of Template:Cardinal to word Airbus A320s (all of them leased from Air France), Template:Cardinal Antonov An-24s, Template:Cardinal to word ATR 72s, Template:Cardinal to word Boeing 707-300s, Template:Cardinal to word Ilyushin Il-18s, Template:Cardinal to word Tupolev Tu-134s and Template:Cardinal to word Yakovlev Yak-40s;<ref group="nb">In early March 1995, Flightglobal informed the carrier also had Template:Cardinal to word Boeing 767s in the fleet, Template:Cardinal to word of them leased from AWAS and the other one from Region Air.<ref name="tolease" /></ref> at this time the route network comprised Template:Cardinal domestic destinations (including Ban Me Thuot, Da Nang, Dien Bien Phu, Hue, Nha Trang, Phu Quoc and Pleiku) and Template:Cardinal international destinations (including Bangkok, Hong Kong, Kuala Lumpur and Singapore).<ref name="FI1995-79/80" />Template:Rp On Template:Start date,<ref name="Our Background" /> the airline, along with a number of other aviation-related businesses, were incorporated to establish Vietnam Airlines Corporation.<ref name="FI1996-6" /> Two Fokker 70s were purchased in mid 1995 for Template:US$ million;<ref name="Vf70s" /> they were aimed at partly replacing the Tupolev Tu-134 fleet on domestic routes as well as at serving as VIP transport.<ref name="Two70" /> In December 1995, discussions with GECAS for the lease of Template:Cardinal to word additional, second-hand Boeing 767-300ERs were under way; these ex-Continental Airlines aircraft would act as a replacement for wet-leased Boeing 767 aircraft (Template:Cardinal to word -300ERs and Template:Cardinal to word -200ER leased from AWAS and Royal Brunei) in the fleet.<ref name="GECAS" />
In September 1996, Vietnam Airlines started offering business class services and in 1999, the airline launched its frequent-flyer program, Golden Lotus Plus;<ref>Template:Cite web</ref> During 1996, Vietnam Airlines looked for aircraft which would substitute the A320s wet-leased from Air France when the deal was over. Apart from acquiring further A320s, the airline considered Boeing 737s and McDonnell Douglas MD-90s.<ref name="A320 substitute" /> In Template:Start date, GECAS delivered the Template:Ordinal to word of Template:Cardinal to word Boeing 767-300ER to the carrier, on dry-lease for Template:Cardinal to word years.<ref name="Vietnam delivery" /> In Template:MONTHNAME the same year, Template:Cardinal to word Boeing 767-300ERs and a Boeing 767-200, on lease from AWAS and Royal Brunei Airlines, respectively, were returned to the lessors, but in early 1997 another Boeing 767-300ER was phased in on a one-year lease from AWAS.<ref name="grow" /> 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.<ref name="A320 substitute" /> Meanwhile, two Fokker 70s were acquired in May and July to replace the twelve Tupolev Tu-134s.<ref name="Catching up" />Template:Rp<ref>Template:Cite journal</ref> On 3 September 1997, the crash of a Tupolev Tu-134B, on approach to Phnom PenhTemplate:'s Pochentong Airport in bad weather, resulted in more than Template:Cardinal fatalities.<ref name="VPenh" />
A new livery was introduced in early 1998, initially unveiled on a Boeing 767.<ref name="Vietnam's new clothes" />
In December 2001, Vietnam Airlines signed a historic agreement with Boeing for the acquisition of its first ever US-built aircraft, signalling the start of trade under the Bilateral Trade Agreement between the two countries.<ref name="Hist1" /> The deal involved four Boeing 777-200ERs.<ref name="Vord" /><ref name="V200ERs" /> The transaction was valued at Template:US$ million; the first aircraft was initially scheduled for delivery in 2003.<ref name="Hist1" /> These four aircraft, along with six others of the same type that are leased from International Lease Finance Corporation (ILFC), are the flagships of the airline, and serve on medium and long-haul routes, respectively.<ref name="Vopt" />Template:Update inline During that year, the airline carried 3.4 million passengers, 1.9 million of whom were on domestic flights; flights to Beijing resumed and services to Kunming were launched.<ref name="VNA_History" /><ref name="VNA_1991-2001_pax" /> During 2002, Vietnam Airlines considered a lease offer from Airbus for two Airbus A340-300s,<ref>Template:Cite journal</ref> which were never delivered to the airline.Template:Fact On 4 September 2003, a landmark ceremony celebrated the airline's receipt of its first Boeing 777-200ER purchased outright from Boeing.<ref name="Vfirst" /> On 28 October, the airline decided to move its operations in Moscow from Sheremetyevo International Airport to Domodedovo International Airport.<ref>Template:Cite press release</ref>
In June 2005, Vietnam Airlines ordered four Boeing 787-8s.<ref name="V787s" /> Twelve additional 787-8s were ordered in late 2007, some of them to be directly acquired from the company, and the rest to be purchased by the carrier's subsidiary Vietnam Aircraft Leasing Company (VALC).<ref name="B2007" /><ref>Template:Cite news</ref><ref>Template:Cite news</ref> These new aircraft were to allow Vietnam Airlines to expand its network and replace some leased aircraft.<ref>Airliner World, March 2005</ref> Regarding the delays from Boeing, CEO Pham Ngoc Minh remarked in September 2009, "We are not happy about the constant delays. It affects our business plan. We expected to get our planes in 2009, then in 2010, and now nobody can confirm to us which is the exact delivery date. I can be patient but it gives us a lot of headaches."<ref>Template:Cite news</ref> In 2010 the airline switched its Boeing 787 order from the Template:Nowrap to the Template:Nowrap model, stating that 787-8s did not meet all the requirements Boeing initially promised; it was expected that the airline would receive its first aircraft of the type in 2015.<ref name="swit" />
On 20 June 2005, the airline launched direct services to Frankfurt after having discontinued services to Berlin. It came after the 2004–2005 period when travel between the two countries soared 70%.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> The following year, Vietnam Airlines was admitted into IATA.<ref>Template:Cite news</ref><ref>Template:Cite web</ref> As part of the move, Vietnam Airlines had to meet the association's IOSA safety standards.<ref>Template:Cite news</ref>
Expansion: 2007–current
According to several newspaper reports in 2007, the Vietnamese government planned to partly privatize Vietnam Airlines.<ref name="next year" /> In the plan, the government considered selling 20–30% of the airline's stake to outsiders, with the government holding the balance. This was a small part of a bigger proposal by the government to privatize its state-owned companies, due to be completed by 2010.<ref>Template:Cite news</ref> 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 Great Recession.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref>
On 1 October 2007, the airline and VALC signed a memorandum of understanding for the purchase of ten Airbus A350 XWBs, and 20 additional Airbus A321s.<ref>Template:Cite press release</ref><ref name="Vjets1" /> The Airbus A350s will supplement the Boeing 787s already ordered by the airline.<ref name="Vjets1" /> This single order will result in Vietnam Airlines becoming one of the largest Airbus operators in Asia.<ref>Template:Cite news</ref> The two companies also ordered five extra ATR 72-500s in December 2007.<ref>Template:Cite news</ref>
Vietnam was chosen as the host of Miss World's 60th contest in 2008. As the country's national airline, Vietnam Airlines was selected as the sponsoring airline for the beauty pageant.<ref>Template:Cite news</ref> Therefore, it was tasked the job of managing all the transport matters for the contest, to be carried out during September and October, just before the beginning of the competition. However, it was later decided to carry out the event in Sanya, China, following speculations of Vietnam withdrawing.<ref>Template:Cite news</ref> In Template:Start date, Vietnam Airlines added Nagoya, the airlineTemplate:'s Template:Ordinal to word point served in Japan besides Fukuoka, Osaka and Tokyo, to the route network.<ref name="Nagoya" />
In 2009, Vietnam Airlines and the Government of Cambodia established a joint-venture, having 49% and 51% stockholding, respectively,<ref name="Cnew" /> with the goal of boosting tourism in Cambodia.<ref>Template:Cite news</ref><ref name="CamAngAor" /> The joint-venture was a new Cambodian national airline named Cambodia Angkor Air, which started flying in July the same year,<ref name="Camb1" /> using ATR 72 aircraft;<ref name="Cnew" /> an Airbus A321 joined the fleet in September.<ref name="CamAngAor" /> Also in 2009, the carrier signed a deal for another 16 Airbus A321s plus two Airbus A350s, during the Paris Air Show.<ref>Template:Cite news</ref><ref name="airbus" /> In addition, Vietnam Airlines launched a new bilingual website in Template:MONTHNAME to simplify bookings<ref name="Vweb" /> and adopted a new passenger service system designed by IT provider Sabre Airline Solutions.<ref>Template:Cite web</ref>
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On 26 August 2010, the airline teamed up with Boeing during the unveiling of its interior modernization programme to increase passenger comfort.<ref name="enh" /> 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.<ref>Template:Cite news</ref> In November 2010, the airline awarded Honeywell a Template:US$ million contract to retrofit the Airbus A321s' aircraft flight systems, which is calculated to save Vietnam Airlines Template:US$ per aircraft per year.<ref>Template:Cite newsTemplate:Subscription required</ref><ref>Template:Cite news</ref>
In January 2011, plans were announced by the airline to re-initiate an initial public offering (IPO) by the end of 2012;<ref>Template:Cite news</ref> an earlier attempt was stalled by the 2008 financial crisis.Template:Citation needed Scheduled for mid 2014 after several delays,<ref>Template:Cite news</ref> the IPO and subsequent share-offerings will supply the funds to expand Vietnam Airlines' fleet and network.<ref>Template:Cite journal</ref><ref name="Vipo" /> With the company valued at Template:US$ billion, the government plans to initially keep 75% of the shares.<ref name="seek" /> The IPO plan was submitted to the Vietnamese Ministry of Transport in June 2014.<ref name="planto" /> Scheduled to commence on 14 November 2014, the IPO received two submissions from foreign companies, but their names have not been disclosed.<ref name="target" /> The corporation was scheduled to be restructured by 2015 to bring it in line with other state-owned enterprises and to shift its focus away from non-core businesses. Following restructuring, the airline group will consist of Vietnam Airlines itself, as well as three carriers; in total, the corporation will comprise 26 independently audited companies.<ref name="Restructuring" />
In February 2012, Vietnam Airlines boosted its stake in the low-cost carrier Jetstar Pacific Airlines to 70%, with Qantas holding the balance.<ref name="JP1" /><ref>Template:Cite news</ref><ref name="Newpart" /> The Vietnamese flag carrier was the major shareholder in Vietnam's second largest airline, but its stake had been transferred to the Ministry of Finance, and subsequently to the Vietnamese State Capital Investment Corporation (SCIC).<ref name="Qant" /> The carrier's takeover of SCIC's stake in Jetstar Pacific will capitalise the low-cost carrier with Template:US$ million, an amount that will be directed towards fleet renewal.<ref name="JP1" /> In late April 2012, the aircraft lessor ALC announced the placement of an order for eight Boeing 787-9s, which will be leased to Vietnam Airlines; deliveries are expected to start in 2017.<ref name="ALC8" /> In late May 2012, the carrier signed an agreement with Vietnam's Eximbank for a loan worth Template:US$ million, which the carrier will use to finance the acquisition of four Airbus A321s; a further Template:US$ million was loaned in April 2013 to finance the purchase of eight Boeing 787s.<ref>Template:Cite news</ref><ref>Template:Cite web</ref> In a deal valued at Template:US$ billion, Vietnam Airlines signed a contract with General Electric in October 2013 for 40 engines to power the Boeing 787 aircraft the airline had on order.<ref name="gee" /><ref name="VDeal" />
In July 2014, a new route to Tokyo-Haneda from Hanoi was introduced.<ref name="Haneda" /><ref name="Vhan" />
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Vietnam Airlines received its first Airbus A350-900 in late June 2015, becoming the second operator of the type worldwide after Qatar Airways.<ref name="Vdel" /><ref name="PICT" /><ref name="VA350" /> In Template:Start date, the airlineTemplate:'s first Boeing 787-9 entered the fleet.<ref name="chap" /><ref name="in Hanoi" /> In November 2018, the carrier received its first Airbus A321neo.<ref name="A321neos" /><ref name="Vto enter" /><ref name="VfirstA" /> Vietnam Airlines' participation in Cambodia Angkor Airlines ended in April 2020 when all the shares were sold to an undisclosed buyer, while acquiring all Qantas's stake in Jetstar Pacific, eventually rebranding the carrier as Pacific Airlines in the same year.<ref name="VAAir" /><ref>Template:Cite web</ref> In November 2021, Vietnam Airlines started its first non-stop service to the United States, from Ho Chi Minh City to San Francisco.<ref>Template:Cite web</ref>
Corporate affairs and identity
Vietnam Airlines Company Limited was a limited liability company wholly owned by the government of Vietnam, having been restructured from Vietnam Airlines Corporation in June 2010 and then formally became Vietnam Airlines Joint Stock Company in 2015, which is considered as a "exceptional milestone" by the airline.<ref name="llco" /><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref name="reuters.com" />Template:Rp Its role is to provide economic gains to the country, as its tasks, in addition to scheduled passenger and cargo transport, include "responsibility towards labor, contribution to the state budget, and providing chartered flights", according to former CEO Dao Manh Nhung.<ref name="JSTOR_2000" /> The airline is headed and overseen by a seven-seat management team, members of which are selected by the Prime Minister of Vietnam.<ref name="JSTOR_2000" /> As of September 2022, Dang Ngoc Hoa is the chairman of the company, whereas Le Hong Ha is the president and CEO.<ref name="About us"/> As of December 2019, the workforce of the Group numbered 21,255 employees with Vietnam Airlines itself employing 6,409 people.<ref>Template:Cite web</ref> The airline is headquartered in the Long Bien District of Hanoi;<ref>Template:Cite web "200 Nguyen Son Str., Long Bien Dist., Ha Noi city, Vietnam"</ref> previously it was headquartered at Gia Lam Airport in Gia Lam, Hanoi.<ref>Template:Cite web</ref><ref>Template:Cite journal</ref>
When Vietnam Airlines wholly owned Pacific Airlines after Jetstar's withdrawal of stakes in this low-cost carrier, the corporation has started to use the term Vietnam Airlines Group to refer a group consisting of three airlines owned by Vietnam Airlines including Vietnam Airlines (itself), Pacific Airlines and Vietnam Air Services Company.<ref>Template:Cite web</ref>
Training
In 2009, the airline, Airbus and ESMA Aviation Academy created Bay Viet Flight Training Company to train pilots in the country, with the expectation that up to 100 trainees would graduate annually.<ref>Template:Cite press release</ref> In October 2010, the company planned to train 60 pilots in Vietnam during 2011–2012. In 2010, Vietnam Airlines needed 636 pilots, 60% of whom were Vietnamese. It planned to raise that figure it to 75% by 2015, meaning there will be at least 100 recruits each year from 2010 until 2015.<ref>Template:Cite news</ref> Vietnam Airlines also contracts CAE Global Academy Phoenix in Arizona, United States, to train its cadets.<ref>Template:Cite web</ref>
Financial performance
Vietnam Airlines enjoyed an average of 37% increase in passengers flown per year the 1997 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.<ref name="FI1997-12" /> The airline carried more than 4 million passengers in 2002, which is an 18% increase over the previous year.<ref name="profitsnumber" /> Its cargo traffic also climbed 20% during the same period, resulting in a 2002 profit of US$35.77 million.<ref name="profitsnumber" />
Despite the severe acute respiratory syndrome (SARS) 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 9 million passengers, of which 4 million were international travellers in 2007, the year which saw the airline earning a gross profit of US$23 million from a revenue of US$1.23 billion. It also transported 115,100 tonnes of cargo.<ref>Template:Cite journal</ref><ref name="Vpct" /> 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.<ref name="Vfall" /> According to Anna.aero, Vietnam Airlines' passenger capacity for 2010 rose 30% over the same period of the previous year. This also coincided with the increase in capacity at Vietnamese airports, at 21%.<ref name="VN_booming" /> In 2012, the company's total revenue totalled US$2.4 billion, with profits totalling US$3.3 million.<ref name="Restructuring" /> The following year, the carrier posted a Template:US$ million gross profit.<ref name="g2013" />
Vietnam Airlines held about 40% of the market share of international passengers flying to and from Vietnam in February 2012.<ref name="JP1" /> At the time, Vietnam Airlines controlled 77% share of the domestic aviation market, with 14% covered by Jetstar Pacific.<ref name="JP1" /> As of December 2012, Vietnam Airlines controlled just below 70% of the domestic market share.<ref name="Restructuring" />
In July 2021, it was announced that Vietnam Airlines employees can buy 70 million shares as strategic shareholder ANA Holdings transferred 70 million shares to 15,100 employees of the Vietnam Airlines Group.<ref>Template:Cite web</ref>
Subsidiaries and affiliates
Vietnam Airlines Group has at least 20 subsidiaries and affiliates.<ref>Template:Cite web</ref> By the end of its restructuring in 2015, the company planned to have offloaded its stakes in more than 10 enterprises.<ref>Template:Cite news</ref>
| Company | Type | Principal activities | Incorporated in |
Group's equity shareholding |
|---|---|---|---|---|
| Vietnam Air Service Company<ref name="Vstrong" /> | Subsidiary | Passenger transport | Vietnam | 100% |
| Vietnam Airlines Engineering Company<ref name="Vstrong" /> | Subsidiary | Aircraft maintenance | Vietnam | 100% |
| Vietnam Airlines Caterers | Subsidiary | Catering | Vietnam | 100%<ref>Template:Cite web</ref> |
| NoiBai Catering Services | Subsidiary | Catering | Vietnam | 100% |
| Pacific Airlines<ref name="Pnew" /> | Subsidiary | Passenger transport | Vietnam | 98%<ref name="Pnew" /> |
| Vietnam Aircraft Leasing Company<ref>Template:Cite web</ref> | Joint venture | Aircraft leasing | Vietnam | 20%<ref name="OAMag1" /> |
Aircraft maintenance and production
Vietnam Airlines is increasingly becoming involved in the maintenance, overhauling, and production of aircraft. Maintenance works are carried out by Vietnam Airlines Engineering Company (VAECO), which was established on 1 January 2009.<ref name="Larg" /> VAECO was organized mainly upon the amalgamation of the A75 and A76 aircraft maintenance bases.<ref name="74a" />Template:Rp VAECO carries out maintenance and technical services for Vietnam Airlines as well as for other airlines. The establishment of this company opens a new era to the aircraft maintenance field in Vietnam. As of 2013, VAECO was capable of performing a wide range of maintenance on many different aircraft types; this includes C-checks for the Boeing 777, Airbus A330, Airbus A320 and Airbus A321; and D-checks, the most thorough of all maintenance procedures, which are carried out on the ATR 72 and Fokker 70.<ref>Template:Cite web</ref>
In addition to its self-maintenance facilities, Vietnam Airlines also has maintenance contracts with other airlines and maintenance organisations.<ref name="74a" />Template:Rp
There are currently no production facilities in Vietnam for aircraft and spare parts. However, Boeing has managed to obtain 35% of the distribution market in Vietnam, and GE Aviation, in turn, supplies jet engines for the Boeing aircraft. In the future, conversely, Vietnam Airlines is planning to build a maintenance factory in conjunction with Rolls-Royce and other companies.<ref>Template:Cite web</ref> It has also signed a memorandum of understanding with EADS, a pan-European aerospace and defence corporation, that would let the corporation assemble and manufacture plane components in the future.<ref>Template:Cite web</ref>
Destinations
Vietnam Airlines has a network within Asia, North America, Europe and Oceania.<ref>Template:Cite web</ref> With about 300 daily flights,<ref name="sheet" /> the airline flies to 22 destinations domestically, and to 37 internationally.<ref>Template:Cite web</ref> In addition, it has codeshare agreements with a number of airlines for other routes, some of which span to North America.
Tết flights
Vietnam Airlines has traditionally increased flights among Vietnamese cities to cater for the heavy demands brought by the annual Tết 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 rural areas, to celebrate the occasion. In 2010, the airline increased its seat capacity from 45% to 120% on certain domestic routes.<ref name="addTet" /> In 2011, it increased additional flights on ten routes, adding more than 100,000 seats. About 63,000 of these seats were between Hanoi and Ho Chi Minh City. This represented a remarkable 41% increase against normal days.<ref name="tet" /> In 2013, the carrier added an extra 174,000 seats during the celebratory period, of which 82,000 seats were on the trunk route between its primary hubs.<ref>Template:Cite news</ref>
Alliances
Vietnam Airlines joined the SkyTeam airline alliance on 10 June 2010.<ref name="Vform" /><ref name="VAjoin" />
Codeshare agreements
Vietnam Airlines codeshares with the following airlines:<ref name="Prof"/><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
- Air Europa
- Air France
- All Nippon Airways
- Bangkok Airways<ref>Template:Cite web</ref>
- Cambodia Angkor Air
- Cathay Pacific<ref>Template:Cite web</ref>
- China Airlines
- China Eastern Airlines
- China Southern Airlines<ref>Template:Cite web</ref>
- Delta Air Lines
- El Al<ref>Template:Cite news</ref>
- Etihad Airways<ref>Template:Cite news</ref>
- Finnair
- Garuda Indonesia<ref>Template:Cite web</ref>
- ITA Airways<ref>Template:Cite web</ref>
- Kenya Airways
- KLM
- Korean Air
- Middle East Airlines
- Pacific Airlines
- Philippine Airlines
- Qantas
- Saudia
- Scandinavian Airlines
- Singapore Airlines<ref name="Routes & Networks Latest: Rolling Daily Updates (W/C Sept. 22, 2025)" />
- SNCF (railway)
- TAROM
- Turkish Airlines<ref>Template:Cite web</ref>
- VASCO Template:Small
- Virgin Atlantic<ref>Template:Cite web</ref>
- XiamenAir
Template:Div col end Template:Clear
Interline agreements
Vietnam Airlines interlines with the following airlines:
- Lao Airlines<ref>Template:Cite web</ref>
Fleet
Current fleet
Template:As of, Vietnam Airlines operates the following aircraft:<ref name="MAX order" /><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
| Aircraft | In service | Orders | Passengers | Notes | |||
|---|---|---|---|---|---|---|---|
| J | W | Y | Total | ||||
| Template:Nowrap | 3 | 1 | 4 | — | 180 | 184 | At least 2 aircraft were not taken up and transferred to Volaris.<ref>Template:Cite web</ref> Delivery starts from July 2024.<ref>Template:Cite web</ref> |
| Template:Nowrap | 42 | — | 16 | — | 162 | 178 | One aircraft painted in SkyTeam livery.<ref name="Skyfact" /> Older aircraft to be retired.<ref>Template:Cite web</ref> |
| 168 | 184 | ||||||
| 8 | 195 | 203 | |||||
| Template:Nowrap | 20 | — | 8 | — | 195 | 203<ref>Template:Cite web</ref> | |
| Template:Nowrap | 14 | — | 29 | 45 | 231 | 305 | |
| 36 | 240 | 305 | |||||
| Template:Nowrap | 11 | — | 28 | 35 | 211 | 274<ref name="VJune" /> | |
| — | 283 | 311 | |||||
| Template:Nowrap | 6 | 2<ref>Template:Cite web</ref> | 24 | — | 343 | 367 | |
| Vietnam Airlines Cargo fleet | |||||||
| Airbus A321-200/P2F | — | 2 | Cargo | ||||
| Total | 96 | 6 | |||||
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Fleet development
In 2023, Vietnam Airlines signed a memorandum of understanding with Boeing for fifty 737 MAX 8, which are expected to replace a majority, if not all, of the carrier's aging Airbus A321ceo fleet.<ref>Template:Cite web</ref> As of 2025, Vietnam Airlines have been financially arranging to firm up the order, which may realistically worth more than US$8 billion, according to the 2025 US-Vietnam governmental joint statement.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
In 2025, Vietnam Airlines announced that it plans to expand its fleet with up to 30 new widebody aircraft, specifically defined that the types should be Airbus A350-900 or Boeing 787-9, while also mentioned that it would consider any type of offer from leasing to purchasing for delivery during 2028–2032.<ref>Template:Cite web</ref> A firm order for 30 widebodies may worth up to US$10 billion, per listing price.<ref>Template:Cite web</ref>
Previously operated
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Since its conception in 1956, the airline has operated a wide range of aircraft, including Soviet, American, and European aircraft. Having retired all Soviet-made planes, the airline currently uses Boeing and Airbus aircraft.
Vietnam Airlines has operated the following aircraft throughout its history:<ref name="ATDB" />
- Aero Ae-45
- Airbus A300-600
- Airbus A300B4
- Airbus A310-200
- Airbus A310-300
- Airbus A320-200
- Airbus A321-100
- Airbus A330-200<ref>Template:Cite web</ref>
- Airbus A330-300
- Antonov An-2
- Antonov An-24
- Antonov An-30
- ATR 72-200<ref>Template:Cite news</ref>
- Boeing 707-320
- Boeing 707-320B
- Boeing 707-320C
- Boeing 727-100
- Boeing 727-200
- Boeing 737-300
- Boeing 767-200ER
- Boeing 767-300ER
- Boeing 777-200ER<ref name="VLAX" />
- Douglas DC-3
- Douglas DC-4
- Douglas DC-6
- Fokker 70<ref>Template:Cite web</ref>
- Ilyushin Il-14G
- Ilyushin Il-18
- Lisunov Li-2<ref>Template:Cite web</ref>
- Mil Mi-4<ref>Template:Cite news</ref>
- Tupolev Tu-134A
- Tupolev Tu-134B
- Yakovlev Yak-40<ref name="Vnear" />
Services
Entertainment
On flights operated using Airbus A350 XWB and Boeing 787 Dreamliner, Vietnam Airlines offers in-flight entertainment via personal televisions. On flights operated using Airbus A321neo, Vietnam Airlines offers in-flight entertainment via personal devices. Entertainment options consist of films, games, TV programmes, audiobooks and music. Vietnam Airlines offers two in-flight magazines, Heritage and Heritage Fashion, in addition to other reading material.<ref>Template:Cite web</ref>
Cabins
- Business
Business class is the highest of the three cabin classes offered by the airline. 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. On Airbus A321s, recliner seats are offered, laid out in a 2-2 configuration. The seat offers 45 inches of pitch, 10 degrees of recline as well as foot and leg rest. On Boeing 787s and Airbus A350s, lie-flat seats in a 1-2-1 configuration are offered. A 15.4-inch entertainment screen is available on the two aircraft. Seats are arranged in a reverse herringbone configuration on Boeing 787 and staggered seating is available on Airbus A350. Refreshments are offered on flights over 90 minutes, with hot meals available on flights that are longer than two hours.<ref>Template:Cite web</ref>
Vietnam Airlines' premium economy class has a wider seat width and legroom compared to Economy with Template:Convert of seat pitch and 7-8 inches of recline. This class is offered only on flights operated by Boeing 787-9 or Airbus A350. On every flight featuring Premium Economy, hot meals are served with an extensive menu of Vietnamese delicacies and popular world cuisine. Personal care bags with essential amenities are also provided. Premiere brand cosmetics and aqua water are available in the restroom during longer flights. Refreshments are served on flights over 90 minutes, with hot meals available on flights that are longer than two hours.<ref>Template:Cite web</ref>
- Economy
Economy class is available on all flights operated by Vietnam Airlines. Seats in this cabin feature seats Template:Convert in width.<ref>Template:Cite web</ref> Seat pitch on this cabin class is Template:Convert, while seat recline ranges from 6-13° (5-6 inches). Refreshments are offered on flights over 90 minutes, with hot meals available on flights that are longer than two hours.<ref>Template:Cite web</ref>
Lotusmiles
Lotusmiles (stylized as LotuSmiles) is the airlines' frequent flyer program.<ref name="lotus1"/> The program consisted of five tiers (Silver, Titanium, Gold, Platinum and Million Miler) with benefits varying between tiers.<ref>Template:Cite web</ref> Membership in this program is free, and members can earn miles in different ways (flying in carriers within Vietnam Airlines Group, SkyTeam carriers and carriers partnered with Vietnam Airlines based on distance and seating class, daily shopping with co-branded credit cards, using partners' services such as Booking.com or direct payments).<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Accumulated miles can be redeemable to buy tickets and items at Lotusmall or exchange for vouchers for Vingroup services.<ref>Template:Cite web</ref>
Accidents and incidents
According to Aviation Safety Network, Vietnam Airlines has experienced six accidents/incidents since 1951, three of them leading to fatalities.<ref>Template:Cite web</ref> All of the latter involved Soviet-built aircraft and occurred on final approach. The deadliest one took place on 19 September 1988, when a Tupolev Tu-134A crashed on approach to Don Mueang International Airport, killing 76 of 90 aboard.<ref>Template:Cite web</ref> The second deadliest accident occurred on 3 September 1997, when a Tupolev Tu-134B-3 crashed after hitting trees on approach to Phnom Penh International Airport; the death toll rose to 65.<ref>Template:ASN accident</ref> The third deadliest accident occurred on 14 November 1992, when a Yakovlev Yak-40 crashed on approach to Nha Trang Airport, killing 30 of 31 aboard.<ref>Template:ASN accident</ref> The airline also experienced a hijacking in 1992, without fatalities.<ref>Template:ASN accident</ref>
See also
Footnotes
References
External links
- Pages with broken file links
- Vietnam Airlines
- Airlines of Vietnam
- Airlines established in 1956
- Government-owned airlines
- Government-owned companies of Vietnam
- Vietnamese brands
- SkyTeam
- Companies based in Hanoi
- 1956 establishments in North Vietnam
- 2019 initial public offerings
- Companies listed on the Ho Chi Minh City Stock Exchange