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Name: VIETNAM AIRLINES
7JetSet7 Code: VIE
Status: Operational
Region: ORIENT
City: HANOI
Country: VIETNAM
Employees 6900
Web: vietnamairlines.com
Email:
Telephone: +84 48272289
Fax: +84 48272289
Sita: HDQIIVN
Background
(definitions)

Click below for data links:
VIE-2003-11 - A321-131
VIE-2004-09-NEW A321
VIE-2005-04 - 767-383ER
VIE-2015-02 - A350-941 - ROLL-OUT.jpg
VIE-2015-02 - NEW LIVERY 777.jpg
VIE-2015-07 - 787-9 Near Washington DC.jpg
VIE-CABIN ATTENDANTS-2015-04.jpg
VIE-Flight Operations - 2015-08.jpg
VIE-LOGO
VIE-MAP
VIE-MAP - REGIONAL
VIE-SKYTEAM ALLIANCE - 2010-06
VIE-VISIT PHU QUOC
VIE-VISIT THE INFINITE CAVE
VIE-VISIT VIETNAM-A
VIE-VISIT VIETNAM-B
VIE-VISIT VIETNAM-C

FORMED IN 1956. STATE AIRLINE OF VIETNAM. DOMESTIC, REGIONAL AND INTERNATIONAL, SCHEDULED, PASSENGER, JET AIRPLANE SERVICES.

ADDRESS:
200 NGUYEN SON ROAD, GIALAM DISTRICT
HANOI 10000, VIETNAM

VIETNAM (THE SOCIALISTIC REPUBLIC OF VIETNAM) WAS ESTABLISHED IN 1945, IT COVERS AN AREA OF 331,689 SQ KM, ITS POPULATION IS 75 MILLION, ITS CAPITAL CITY IS HANOI, AND ITS OFFICIAL LANGUAGE IS VIETNAMESE.

APRIL 1993: 1 767-200ER (PW4056), EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) EQUIPPED, (AWW) LEASED. 2 737-300'S (CFM56-3B2), (TEA) BASEL (TEB) WET-LEASED.

SEPTEMBER 1993: 3 A320-200'S (CFM56-5A1), AIR FRANCE (AFA) WET-LEASED.

JANUARY 1994: +3 A320-200'S, AIR FRANCE (AFA) WET-LEASED.

FEBRUARY 1994: USA TRADE EMBARGO LIFTED AFTER 19 YEARS.

JULY 1994: $34 MILLION, 2 ORDERS ATR72'S.

OCTOBER 1994: 1 767-300ER (PW4056), EX-TACA INTERNATIONAL (TAC).

NOVEMBER 1994: 1 ATR 72 (PW124) DELIVERY.

DECEMBER 1994: 3 767'S, REGIONAIR (RAE) WET-LEASED, & 2 ATR72'S.

JANUARY 1995: 1994 = $250 MILLION (NET PROFIT).

JULY 1995: NOW 8 A320'S LEASED. 25 INTERNATIONAL ROUTES.

SEPTEMBER 1995: 10 ORDERS A320-200, REGIONAIR (RAE) LEASED.

OCTOBER 1995: 2 ORDERS (APRIL 1996) F 70, 79 PAX TO REPLACE TU-134'S.

DECEMBER 1995: 1994 = 1.67 MILLION PASSENGERS (PAX) (+236% (RPK) PASSENGER TRAFFIC. 2.1 MILLION PASSENGERS PROJECTED FOR 1995. VIETNAM POPULATION = 73 MILLION, 3 MILLION OVERSEAS (MOSTLY IN USA). PROJECTS 17.5 MILLION PASSENGERS (PAX) BY 2005.

TWO EXISTING MAINTENANCE BASES: A75 - HO CHI MINH, & A76 IN HANOI (LIGHT "C" MAINTENANCE CHECKS ON A320 & ATR 72 WITH HEAVY MAINTENANCE DONE OVERSEAS).

10 A320-200'S, REGIONAIR (RAE) LEASED. ALSO, LOOKING AT SEVERAL 767-300ER'S, (GUI) LEASED. TO LEASE A340-211 FROM (RAE). TO EXPAND ITS ATR 72 FLEET FOR DOMESTIC & SHORT-HAUL REGIONAL ROUTES, TO CAMBODIA & LAOS.

JANUARY 1996: 1995 = +55% (RPK) TRAFFIC (>2.2 MILLION PASSENGERS (PAX)).

FEBRUARY 1996: CODE SHARE WITH JAPAN AIRLINES (JAL), OSAKA - HO CHI MINH CITY (VIE) 767, 245 PAX, & (JAL) DC-10, 266 PAX).

3 767-324ER'S (VL751; VL752 & VL754), (GUI) LEASED.

APRIL 1996: 1 A300B4-200, EX-AIR FRANCE (AFA).

MAY 1996: 10 ORDERS (JUNE 1997) A320-200 (CFM56-5B4), 150 PAX, AEROSTAR LEASING, BRITISH VIRGIN ISLES.

JULY 1996: 1ST 2 A320-200'S DELIVERIES.

AUGUST 1996: 1 767-300ER (27428), ROYAL BRUNEI AIRLINES (RBA) LEASED. 2 A320-200 (CFM56-5B4/2) DELIVERIES.

NOVEMBER 1996: HAS TAKEN DELIVERY OF 8, OF 10 A320'S, EX-REGIONAIR (RAE).

JANUARY 1997: 1 A320-200 (CFM56-5B4) DELIVERY.

JUNE 1997: TO MAKE DECISION ON NEW LONG-HAUL JETS BY THE END OF 1997, BETWEEN 777-200 (IGW) & A340-300E (HGW).

SEPTEMBER 1997: ACCDT: (VIE) TU-134B-3 CRASHED ON LANDING AT PHNOM PENH, IN MONSOON CONDITIONS = 6 (FC)-(CA)/59 PASSENGER FATALITIES, 1 INFANT SURVIVED. BAD WEATHER BLAMED FOR ACCIDENT.

OCTOBER 1997: 1 ORDER (APRIL 1998) 767-33AER (28495), AWAS (AWW) LEASED. GROUNDED ITS TU-134 FLEET, FOLLOWING LAST MONTH'S CRASH.

DECEMBER 1997: BUYS AIRCRAFT MAINTENANCE & MANAGEMENT SYSTEM (AMASSIS), FROM "(IFR)," FRANCE. TO RECEIVE 767 DATA IN DIGITAL FORM. WILL USE FOR 767, AIRBUS (EDS), AND ATR AIRPLANES.

JOINS ASSOCIATION OF ASIA PACIFIC AIRLINES.

PLANS TO ACQUIRE 2 ATR72'S AS REPLACEMENTS FOR TU-134'S. 1 TU-134B TO BE USED FOR DOMESTIC CARGO SERVICES.

FEBRUARY 1998: 1 ATR 72-201 (195), LEASED.

MARCH 1998: CODE SHARE WITH QANTAS AIRWAYS (QAN), TO MELBOURNE & SYDNEY.

767-324ER (27392) PAINTED IN (BOEING (TBC) DESIGNED) ALL BLUE LIVERY WITH GOLD LOTUS FLOWER LOGO, THE ANCIENT SYMBOL OF OPTIMISM, BY (AMECO), BEIJING (BEJ).

767-300 RETURNED TO AWAS (AWW), TO CITYBIRD (CBD).

APRIL 1998: PLANS TO TAKE OVER COMPLETE AIRBUS MAINTENANCE BY JUNE 1998, AND 767, BY FEBRUARY 1999.

PLANS FOR SAN FRANCISCO (SFO), TO BE 1ST USA GATEWAY.

1ST QUARTER = 673,000 PASSENGERS (PAX) (-5.4%).

MAY 1998: DAO MANH NHUONG, DIRECTOR (EX-DEPUTY DIRECTOR (CAAV) REGULATORY AUTHORITY) REPLACES LE DUC TU, WHO REMAINS ON THE MANAGEMENT BOARD.

5,700 EMPLOYEES. PLANS TO CUT -20%, OVER NEXT 2 YEARS.

SEPTEMBER 1998: 767-328ER (27428), ROYAL BRUNEI AIRLINES (RBA) LEASED.

OCTOBER 1998: FISCAL YEAR (FY) 1997 = -$3.6 MILLION. 1ST 6 MONTHS = 1.26 MILLION PASSENGERS (PAX).

NOVEMBER 1998: MAINTENANCE CONTRACT FOR 4 767-300ER'S & (CF6-80)'S TO LUFTHANSA TECHNIK (LTK) (DLH).

DECEMBER 1998: 767-328ER (27428), RETURNED TO ROYAL BRUNEI AIRLINES (RBA).

FEBRUARY 1999: SIGNS CONTRACT WITH (IFR) FOR AMASSIS MAINTENANCE SYSTEM.

APRIL 1999: 5,700 EMPLOYEES. SITA: HANEPVN.

(http://www.vietnamair.com.vn).

HO CHI MINH CITY - PHNOM PENH (AN-30F).

1998 = 2.48 MILLION PASSENGERS (PAX) (-4%); 40,000 TONS (45,000).

1 ATR72 (PW124B) TO AIR LIBERTE (ALB).

JUNE 1999: 1ST 5 MONTHS INTERNATIONAL = 40.27 MILLION (FTK) FREIGHT TRAFFIC (+2.7%).

SEPTEMBER 1999: IN PROCESS OF TECHNOLOGY TRANSFER PROGRAM WITH ROYAL BRUNEI AIRLINES (RBA).

AUDIT BY SEYCHELLES REGULATORY AUTHORITY.

NOVEMBER 1999: 1998 = -$210,000 (-$2.83 MILLION).

FEBRUARY 2000: IN JUNE 2000, TO DRESDEN, GERMANY, NONSTOP EASTBOUND AND VIA PARIS CHARLES DE GAULLE (CDG) ON RETURN.

APRIL 2000: 4,000 EMPLOYEES.

JUNE 2000: IN JULY 2000, HO CHI MINH CITY - GUANGZHOU (A320, 2/WEEK).

1 A310-324 (549), REGIONAIR (RAE) WET-LEASED. 1 A310-322 (409, S7-RGR), REGIONAIR (RAE) WET-LEASED.

JULY 2000: CODE SHARE WITH CHINA SOUTHERN (GUN) TO GUANGZHOU (3/WEEK).

1999 = 3.45 BILLION (RPK) PASSENGER TRAFFIC; 73.1% LF LOAD FACTOR; 69.45 MILLION (FTK) FREIGHT TRAFFIC; 2.6 MILLION PASSENGERS (PAX) (+6%); 6,200 EMPLOYEES.

PLANS TO LEASE +2 767'S IN 2001, AND 3 ATR 72'S THIS YEAR. WILL ACQUIRE 747'S, OR 777'S BY 2002 FOR SERVICE TO USA. A310-322 (409), RETURNED TO REGIONAIR (RAE) LEASED TO AWAIR (AWR).

AUGUST 2000: IN OCTOBER 2000, TO SEOUL. PLANS TO ADD FLIGHTS TO LAOS & CAMBODIA. IN NOVEMBER 2000, CODE SHARE WITH JAPAN AIRLINES (JAL), FROM HO CHI MINH CITY TO NARITA (JAL 747-400).

GOVERNMENT OK FOR +2 767'S, & +2 ATR 72'S, LEASED (OCTOBER 2000).

SEPTEMBER 2000: 1ST 6 MONTHS = 900,000 PASSENGERS (PAX) DOMESTIC, PROJECTING 1.8 MILLION FOR 2000 (+8%). 1ST 6 MONTHS = 1.35 MILLION PASSENGERS (PAX) (+5.6%).

INCDT: (VIE) 767-300ER (27392, S7-6GV), (GEH) LEASED, "BROKE ITS BACK" ON HEAVY LANDING AT HO CHI MINH CITY. BOEING (TBC) (AOG) TO DO REPAIR.

1 767-328ER (27427, S7-AAB), REGIONAIR (RAE) WET-LEASED. 1 767-352ER (PW4060), (ILF) 20 MONTH LEASED, EX-AIR EUROPE (EIY). 2 ATR 72-200 (509; 523), KLM UK (AUK) LEASED.

OCTOBER 2000: 1ST 9 MONTHS = 2.1 MILLION PASSENGERS (PAX) (+12%), 32,000 TONNES FT (+37%).

HANOI - VIENTIANE - PHNOM PENH (A320).

NOVEMBER 2000: 1 A300B4-605R (584), (AWAIR) (AWR) WET-LEASED (REGIONAIR (RAE) WET-LEASED) FOR $225,000/MONTH. LETTER OF INTENT (LOI) 3 ORDERS 777-200ER'S. 2 767-33AER'S (27377, OO-CTA; 27310, VN-A768), CITY BIRD (CBD) SHORT-TERM LEASE. 1 767-300ER, (AWAS) (AWW) LEASED.

JANUARY 2001: APPROVES PLAN TO EXPAND HANGAR FACILITIES, AT TAN SON NHAT, TO SUPPORT THE 767 FLEET. CONSTRUCTION TO BE COMPLETED IN 2001 AND ALLOW FOR 767'S, TO BE COMPLETELY COVERED.

2000 = +$32 MILLION (NET PROFIT): 3 MILLION PASSENGERS (PAX) (+12%).

IN MARCH 2001, CODE SHARE WITH ALL NIPPON AIRWAYS (ANA), HO CHI MINH CITY TO TOKYO (777-200ER, 3 CLASS).

FEBRUARY 2001: 2000 PRE-TAX = VN$464 BILLION (+15%): 2.9 MILLION PASSENGERS (PAX) (+5%), 45,000 TONNES OF CARGO.

3 ORDERS (OCTOBER 2001) ATR72-500. 1 767-33AER, RETURNED TO CITYBIRD (CBD). 1 767-352ER, (ILF) 20 MONTH LEASED (PW4060), EX-AIR EUROPE (EIY).

MARCH 2001: USA DEPARTMENT OF TRANSPORTATION (DOT) OK'S CODE SHARE WITH CHINA AIRLINES (CHI), HANOI & HO CHI MINH CITY, TO LOS ANGELES (LAX) & SAN FRANCISCO (SFO), VIA TAIPEI. CODE SHARE WITH (UPS), HO CHI MINH CITY - TAIPEI (757-200F, WEEKLY), CAPABLE OF CARRYING 35 TONS OF FREIGHT ON SATURDAYS. 1 757-200PF, (UPS) WET-LEASED.

CONTRACT WITH AIR FRANCE (AFA) INDUSTRIES, FOR "C" MAINTENANCE CHECKS ON 4 A320'S AT TOULOUSE, FOLLOWED BY 6 A320'S AT HANOI, INCLUDING TRAINING FOR MECHANICS (MT) AND MANAGERS.

MAY 2001: IN NOVEMBER 2001, HO CHI MINH CITY - TRA NOC (MEKONG DELTA).

1 +1 ORDER A321-131 (IAE), (ILF) 2 YEAR LEASED, EX-ONUR AIR (ONU), (591; 597).

JUNE 2001: IN JULY 2001, CODE SHARE WITH PHILIPPINE AIRLINES (PAL) TO MANILA (2/WEEK).

OPENS NEW MAINTENANCE HANGAR.

JULY 2001: CODE SHARE WITH AMERICAN AIRLINES (AAL) TO THE USA, VIA TAIPEI.

5 ORDERS A319/A320/A321'S.

OCTOBER 2001: CODE SHARE WITH THAI (TII), DA NANG TO BANGKOK.

DECEMBER 2001: GOVERNMENT PASSES A RECENT DECREE, THAT ALLOWS STATE OWNED ENTERPRISES SUCH AS VIETNAM AIRLINES (VIE) TO APPOINT UPPER MANAGEMENT POSITIONS, WITHOUT THE FORMAL APPROVAL OF THE VIETNAM GOVERNMENT, AS WAS REQUIRED BEFORE.

2001 = +$247 MILLION: +18% PASSENGERS (PAX).

CONFIRMS ITS $680 MILLION, 4 ORDERS 777-200ER'S (FEBRUARY 2003).

JANUARY 2002: GOVERNMENT OK'S CONSTRUCTION OF NEW PASSENGER TERMINAL BUILDING AT TAN SON NHAT (TSN) AIRPORT, HO CHI MINH CITY, STARTING OCTOBER 2003, WITH COMPLETION DECEMBER 2005, TO HANDLE 6.2 MILLION PASSENGERS/YEAR, COSTING $218 MILLION (INCLUDING $185 MILLION LOAN FROM JAPANESE GOVERNMENT).

TO MOSCOW IN COOPERATION WITH PACIFIC AIRLINES (PAH).

AS PART OF 10-YEAR FLEET EXPANSION PLAN, $753 MILLION, 5 ORDERS (JUNE 2003) A321'S. ALSO, 3 ORDERS (FEBRUARY 2002) ATR72'S. LETTER OF INTENT (LOI) 2 ORDERS (APRIL 2003) 777'S, (ILF) LEASED.

MARCH 2002: SITA: HDQIIVN.

APRIL 2002: STARTED HO CHI MINH CITY TO TOKYO.

6,400 EMPLOYEES (INCLUDING 230 FLIGHT CREW (FC), 730 CABIN ATTENDANTS (CA), & 770 MAINTENANCE TECHNICIANS (MT)).

PARENT ORGANIZATION/SHAREHOLDERS: VIETNAMESE GOVERNMENT (100%).

OWNS: PACIFIC AIRLINES (PAH) (57%).

MAIN BASE: HO CHI MINH CITY (TAN SON NHAT INTERNATIONAL) AIRPORT (SGN).

HUB: HANOI (NOI BAI INTERNATIONAL) AIRPORT (HAN).

DOMESTIC, SCHEDULED SERVICES: BAN ME THUOT; DA NANG; DALAT; DIEN BIEN PHU; HAIPHONG; HANOI; HO CHI MINH CITY; HUE; NHA-TRANG; PHUQUOC; PLEIKU; QUINHON; RACHGIA; SON-LA; & VINH CITY.

INTERNATIONAL, SCHEDULED SERVICES: BANGKOK; BEIJING; DUBAI; GUANHZHOU; HONG KONG; KAOHSIUNG; KUALA LUMPUR; KUNMING; MELBOURNE; MOSCOW; OSAKA; PARIS; PHNOMM PENH; SEOUL; SIEM REAP; SINGAPORE; SYDNEY; TAIPEI, TOKYO; & VIENTIANE.

THE 2 777-200'S TO BE LEASED NEXT YEAR, WILL BE OPERATED FROM HANOI AND HO CHI MINH, TO PARIS.

May 2002: Ho Chi Minh City to Vinh (2/week).

June 2002: Hanoi to Tokyo direct.

767-328ER (27427) returned to Royal Brunei (RBA).

July 2002: Resumed route to Moscow.

2001 = +$19.54 million (net profit): 5.57 billion (RPK) passenger traffic (+24%); 74.6% LF load factor; 3.39 million passengers (PAX) (+17.7%); 134.67 million (FTK) freight traffic (+215.1%); 6,400 employees (+12.3%).

767-33AER (27477), Ansett Worldwide (AWW) leased.

August 2002: In November 2002, to Singapore.

October 2002: 1st 9 months = 3 million passengers (PAX) (+15%); 73% LF load factor; +16.3% (FTK) freight traffic.

Changes its logo from "Stork and Moon" to a "Golden Lotus."

1 767-352ER (26261, VN-A763), ex-LanChile (LAN), (ILF) 3 year leased. 1 767-33AER (27909, /95 24 04), ex-Qantas Airways (QAN), (AWAS) (AWW) leased.

November 2002: Asks the government to set up a subsidiary company, to run the carrier's short-haul routes. To be named "EXPRESS AIRLINES," it would handle most domestic flights and take over the shuttle operations to Laos, and Cambodia.

Selects Rockwell Collins to provide avionics and (IFE) systems for 6 777-200ER's.

1st 9 months International = 3.56 billion (RPK) traffic; 88.49 million (FTK) freight traffic; 1.29 million passengers (PAX).

December 2002: 2002 = 4 million passengers (PAX) (+14%).

767-33AER (27909, VN-A766), AWAS (AWW) leased, delivery.

January 2003: 2002 = 4.24 million passengers (+22.56%) & 60,000 tons of cargo.

March 2003: 5-year contract to Lufthansa Systems (DLH), for NetLine resource planning and controlling software.

Hanoi - Siem Reap. Ho Chi Minh City - Fukuoka.

April 2003: A321-131 (557), ex-Air Macau (MCU), Ansett Worldwide (AWW) 2 year leased.

June 2003: Hanoi - Paris (777-200ER, 3/week, cutting flight time to 12.5 hours, -4 hours less than previous flights via Saigon. Also, Saigon - Paris (777-200ER, 3/week).

July 2003: 4,000 employees. SITA: HDQIIVN.

(http://www.vietnamairlines.com).

Plans to serve San Francisco, Frankfurt, and London nonstop from Hanoi (777) in the next 2 years. To widen its international network beyond current Asian, Australian, and European routes to Moscow and Paris.

August 2003: Hanoi - Pusan. Hanoi - Kuala Lumpur (2/week). In September 2003, Ho Chi Minh City - Fukuoka (3/week). In October 2003, Hanoi - Singapore (4/week).

Plans to lease 1 777-200ER from October 2003, 1 order (October 2004) 777-200ER, 5 year leased, 1 order (October 2004) A321, 5 year leased, & 1 order (October 2003) ATR 72, 15 year leased. 777-26KER (33502, VN-A143) delivery.

September 2003: 2002 = +$35.8 million: 6.60 billion (RPK) traffic (+20%); +14.1% (ASK) capacity; 76.4% LF load factor (+1.9); 4 million passengers (PAX) (+18.1%).

2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
84 (OLY) 7.55; 85 (ACH) 7.50; 86 (SBR) 7.48; 87 (MTH) 7.09; 88 (KUW) 6.71; 89 (VIE) 6.60; 90 (SPR) 6.57; 91 (BMA) 6.56; 92 (LNK) 6.41; 93 (RAM) 6.38; 94 (BTA) 6.36; 95 (QTA) 6.20; 96 (COI) 5.96; 97 (EGF) 5.94; 98 (LOT) 5.87; 99 (FRO) 5.49; 100 (WJI) 5.49.

777-26KER (33503, VN-A144) delivery.

October 2003: Ho Chi Minh City - Pusan (2/week). Hanoi - Kuala Lumpur (A320, 3/week).

Plans for +2 orders (2/04) 777-200ER's leased.

December 2003: In January 2004, Hanoi - Frankfurt, via Moscow (767-300ER, 2/week with 777 non-stops, later in 2004).

January 2004: 2003 = 4.2 million passengers (PAX) (+1%). Projects 5 million for 2004.

February 2004: To code share with American Airlines (AAL) on Vietnam - USA services. In March 2004, code share with Air France (AFA), Hanoi & Ho Chi Minh City - Paris.

April 2004: 6,400 employees (including 230 Flight Crew (FC), 730 Cabin Attendants (CA), & 770 Maintenance Technicians (MT)).

May 2004: Hanoi, Ho Chi Minh City - Cam Ranh (A320/A321). Code share with Aeroflot (ARO), Russia - Vietnam.

(MOU) 10 orders (February 2006) A321's and 4 orders A330-200's leased.

August 2004: Plans to operate passenger service to the Spratly Islands - a group of islands in the South China Sea claimed by Vietnam, the People's Republic of China, Brunei, Malaysia, the Philippines, & Taiwan. Expects to use (VASCO) Antonov An-28's to an area occupied by the Vietnamese military.

Plans to acquire up to 15 787's to replace its 8 767's. 767-33AER (27477) returned to AWAS (AWW).

A321-131 (591, VN-A312), returned to (ILF). A321-231 (2267, VN-A347) delivery.

September 2004: 6th 777-26KER (33504, VN-A146) delivery. +2 orders (May 2005) 777-2Q8ER's (ILF) 8 years leased. Memo of Understanding (MOU) signed for 4 orders 787's with an intention to order up to 15 in the longer term.

4th 777-200ER delivery.

November 2004: 4,000 employees.

January 2005: 2004 = +44% (RPK) traffic; +35.4% (FTK) freight traffic.

February 2005: 2 777-2Q8ER's (27607; 27608), ex-Aeroflot (ARO), (ILF) leased.

March 2005: 767-383ER (24848), ex-Holland Exel (HOL), BBAM (BBB) leased.

April 2005: Code share with China Southern (GUN), Guangzhou to Ho Chi Minh City.

May 2005: 2 777-2Q8ER's (27607, VN-A147; 32716, VN-A149), (ILF) leased and A321-231 (2480, VN-A349), delivery.

August 2005: Ho Chi Minh City to Nagoya (3/week).

September 2005: Vietnam Airlines (VIE) joined (ARC) as a participating carrier effective Monday, giving 22,000 (ARC) accredited travel agency and corporate travel department locations the ability to settle Vietnam Airlines (VIE) transactions through (ARC)'s settlement system.

October 2005: Vietnam Airlines (VIE) reported a +28.9% jump in revenue to 15.6 trillion tong for the nine months to Sept 30 as tourist numbers surged to the country. Passengers were up +21% to 4.5 million and load factor was 69% LF.

The Civil Aviation Administration of Vietnam (CAAV) unveiled ambitious plans to build new airports and upgrade others to meet an expected strong growth in the local aviation market. The plan calls for more than $7 billion in spending to create a network of 18 domestic and six international airports by 2015. The blueprint also suggests airports should develop commercial and non-aviation services to account for half of the revenue generated at airports.

The (CAAV) is forecasting that Vietnam's aviation market will grow 12 - 14% a year between now and 2010, and between 9 - 12% in the following two decades, by which time it will be the fifth largest market in the (ASEAN) region. Vietnam is currently building three domestic airports at Na San, Dong Hoi and Can Tho, and wants to accelerate construction of the Long Thanh International Airport to make up for expected overcrowding at Tan Son Nhut Airport. Long Thanh is expected to handle up to 25 million passengers a year, with $3 billion budgeted for its first phase of construction. It will handle 100 million passengers when construction is complete. (CAAV) said two new domestic airports - Quang Ninh and Lao Cai - - would be built in a second phase of development from 2015 to 2025.

The plan envisions a "hub and spoke" development, with three pairs of international airports located in the three regions of the country and within the main economic zones of the regions. (CAAV) said the government would cover much of the capital needed to develop airport infrastructure such as runways, taxiways and airplane parking through funds from the budget, government bonds, and development assistance credits. Airport authorities on the other hand would seek capital for terminals and ground service facilities from their own funds, commercial credits and other sources. Individual investment plans will be based on the development needs of each region and each airport, however.

777-2Q8ER (27608, VN-A151), ex-Aeroflot (ARO), (ILF) leased.

November 2005: American Airlines (AAL) applied to the USA Department of Transportation (DOT) for permission to begin code sharing with Vietnam Airlines (VIE) next year.

December 2005: Vietnam Airlines (VIE) said that its revenues for the first 11 months of 2005 totaled VND22 trillion/$1.38 billion, according to Vietnamese media reports. It flew 6.8 million passengers during the period.

Vietnam Airlines (VIE) took delivery of its 10th 777-200ER. This airplane along with 5 others is leased from (ILFC) (ILF), the airline also owns 4.

777-2Q8ER (32717, VN-A150), delivery.

January 2006: Vietnam will build a $158 million international airport on Phu Quoc island, according to media reports. It will open in 2008 and is expected to handle 2.5 million passengers per year.

February 2006: Air France (AFA) Industries (AFI) will provide full maintenance support for the (GE90) engines powering six of Vietnam Airlines (VIE)'s 777s, the first such contract for (AFI). The agreement covers spare engine support. Vietnam Airlines (VIE) currently operates 10 777s, six with (GE90) powerplants. (AFI) also will deliver on-wing engine services and operation support for (VIE) in all of its line stations worldwide. Term of the initial contract is three years.

March 2006: Vietnam Airlines (VIE) will increase the frequency of flights on its nonstop route from Ho Chi Minh City to Frankfurt from 1 to 2x-weekly from June 21st. The airline will offer flights out of Saigon (SGN) on Wednesdays, Saturdays and Frankfurt (FRA) on Thursdays, Sundays using a 777-200.

Vietnam Airlines (VIE) leased 2 used A330-200s (PW4168A) (255; 262), ex-Malaysia Airlines (MAS), from ILFC (International Lease Finance Corporation) (ILF). The airplanes are scheduled for delivery in January 2007 and February 2007.

April 2006: Vietnam Airlines (VIE) has grounded 4 A320 airplanes because of landing gear problems. The airline says the repairs will take at least until April 18 or 19th.

May 2006: Vietnam Airlines (VIE) will increase the frequency of flights on its Ho Chi Minh City to Banmethuot route from 7 to 10 flights a week. In addition to the existing daily flight, the airline will operate a 2nd flight on Tuesdays, Fridays, & Sundays. All flights are operated with an ATR 72. Vietnam Airlines (VIE) will increase the frequency of flights on its Ho Chi Minh City to Da Nang route from 11 to 16 flights a week from August 1st. (VIE) will operate a daily flight using an A321, a Mondays, Wednesdays, & Fridays flight using a 777-200 as well as 2 flights on Tuesdays & Saturdays and 1 on Thursdays & Sundays using a 767-300. (VIE) will increase the frequency of flights on its Ho Chi Minh City to Hue route from 2 to 3 flights a day from August 1st. In addition to the 2 daily flights operated with an A320 the airline will add a new daily flight operated with an ATR 72.

June 2006: The Vietnam government will build an international airport on Van Don Island in the northern province of Quang Ninh. Officials were quoted by local media as saying construction would begin after 2010, with the airport likely to handle up to 800,000 passengers per year upon completion of its first phase, and up to 3.5 million once the second phase is completed in 2020. The airport is part of a plan to develop a new economic zone.

The government also will spend $23 million to upgrade Can Tho airport into an international facility by 2008. Runways and taxiways will be expanded to cater to mid- and long-range airplanes. A new terminal is under construction. The upgrade will help relieve congestion at Ho Chi Minh City Tan Son Nhat Airport, the only international facility in the south of the country.

July 2006: Vietnam Airlines (VIE), as the national flag carrier, operates scheduled, jet airplane flights to both domestic and international destinations.

8,500 employees (including 368 Flight Crew (FC), 1,300 Cabin Attendants (CA); & 800 Maintenance Technicians (MT)).

(IATA) Code: VN - 738. (ICAO) Code: HVN (Callsign - VIETNAM AIRLINES).

Parent organization/shareholders: Vietnamese government (100%).

Owns: Pacific Airlines (PAH) (60%); Vietnam Air Service (100%); & Vietnam Airlines Express (100%).

Alliances: Air France (AFA); All Nippon Airways (ANA); Cathay Pacific (CAT); China Airlines (CHI); China Southern Airlines (GUN); Japan Airlines International (JAL); Korean Air (KAL); Lao Airlines (LAO); Philippine Airlines (PAL); Qantas Airways (QAN); & Singapore Airlines (SIA).

Main Base: Hanoi Noi Bai International Airport (HAN).

Hub: Ho Chi Minh City Tan Son Nhat International Airport (SGN).

Domestic, Scheduled Destinations: BanMeThuot; Da Nang; Dalat; Dien Bien Phu; Haiphong; Hanoi; Ho Chi Minh City; Hue; Nha-Trang; Phu Quoc; Pleiku; Qui Nhon; Rach Gia; Tuy Hoa; & Vinh City.

International, Scheduled Destinations: Bangkok; Beijing; Busan; Frankfurt; Fukuoka; Guangzhou; Hong Kong; Kaohsiung; Kuala Lumpur; Kunming; Manila; Melbourne; Moscow; Osaka; Paris; Phnom Penh; Seoul; Siem Reap; Singapore; Sydney; Taipei; Tokyo; & Vientiane.

International Aero Engines (IAE) said Vietnam Airlines (VIE) selected IAE (V2500)s to power 10 A321s in a deal valued at more than >$170 million.

October 2006: In 1st 9 months, Vietnam Airlines (VIE) had 13.52 billion (RPK)s traffic (+15.9%); 134.98 million (FTK)s freight traffic (+19.3%); and 3.87 million passengers (+11.2%).

Vietnam Airlines (VIE), which currently operates a daily one stop flight from Ho Chi Minh City to Rach Gia (Vietnam) will inaugurate nonstop service on the route on October 30th. (VIE) will operate 4 flights a week, on Mondays, Wednesdays, Fridays, & Saturdays using an ATR 72. (VIE) will operate a one stop service on the other 3 days of the week.

November 2006: INCDT: (VIE) A330 operating Flight VN 231, Hanoi - Ho Chi Minh City, on Friday November 24, made an emergency landing at Hanoi, due to failure of No 2 engine, 10 minutes after takeoff.

Vietnam Airlines (VIE) and the USA Export-Import Bank announced a preliminary agreement for a loan "in excess" of >$400 million that will support the carrier's acquisition of four 787-8s that it ordered last year. The deal was announced in Hanoi by Michael Marine, USA ambassador to Vietnam. The bank previously financed four 777-200ERs for (VIE). In conjunction with the announcement, Nippon Export and Investment Insurance issued a preliminary commitment to co-finance the Japanese-manufactured components of the 787. According to Reuters, (VIE)'s revenue for the nine months ended September 30 dropped -16.7% year-over-year to $810 million, although passenger numbers climbed +17.5% to 5.1 million.

December 2006: A321-211 (956), returned to (GEF), leased to Kingdom Holding (KBA).

January 2007: Vietnam Airlines (VIE) posted an estimated +VND304.5 billion/+$18.5 million profit in 2006, -8% below the carrier's guidance, according to "VietNamNet." Year-ago figures were unavailable. Revenues were VND17.5 trillion and passenger numbers climbed +17.2% to 6.8 million. The airline said oil prices that surged +18% higher than expected and high airport fees, contributed to the profit shortfall.

Vietnam Airlines (VIE) is among the companies selected by the government to become a public stock company in 2008, the state Vietnam News Agency reported. (VIE) has registered capital of VND5.74 trillion/$344.2 million.

2 A321-231s (2974, VN-A350; 3005, VN-A351), deliveries.

February 2007: Vietnam Airlines (VIE) unveiled a redesigned and upgraded website enabling it to launch e-ticketing this quarter. Domestic fares are available online with the rest of the schedule slated for release next month.

(VIE) started 4x-weekly, Hanoi - Luang Prabang service aboard 65-seat ATR 72s. It is (VIE)'s second destination in Laos.

2 A321-231s (3013, VN-A352; 3022, VN-A353), deliveries.

July 2007: Vietnam Airlines (VIE) reported a pre-tax profit of +$13.3 million for the first half of 2007, down from approximately +$19 million in the year-ago period, "(AFX) News" reported from Hanoi. The earnings for the recently completed semester constituted 56.4% of its full-year target, (VIE) said. Revenue rose +11.9% year-over-year to around $580 million, while six-month passenger numbers climbed +16.5% to 3.8 million, "(AFX)" said.

A321-231 (3198, VN-A354), delivery.

August 2007: Vietnam Airlines (VIE) began operating its international flights from the new International Terminal at Tan Son Nhat International Airport in Ho Chi Minh City.

October 2007: Airbus (EDS) announced that Vietnam Airlines (VIE)signed a Memo of Understanding (MOU) for acquisition of 10 A350-900 XWBs and 20 A321s, while Boeing (TBC) acknowledged that the carrier "has indicated its plan to move forward with additional [787] procurements." (VIE) currently operates airplanes from both manufacturers, including 10 777-200ERs, 10 A320s, 10 A321s, two A330-200s, and one A330-300. It also has five additional A321s already on order. Regarding the A350 commitment, Chairman, Nguyen Sy Hung said the airplane's size "responds very well to our expected traffic growth over the next decade." The new A350 now has received 154 firm orders and 110 commitments, Airbus (EDS) said.

(VIE) confirmed that it will acquire +12 additional 787-8s. (VIE) previously had ordered four 787-8s. Citing Chairman & (CEO), Nguyen Sy Hung, Vietnamese daily "Thanh Nien" reported that the airline signed a Memo of Understanding (MOU) for the direct purchase of four 787-8s, and the purchase by Vietnam Aircraft Leasing of an additional eight. Deliveries will occur in 2015 to 2017. (VIE) plans to introduce its first 787 in 2009. Nguyen told the newspaper that the carrier plans to operate 86 airplanes by 2015, and 110 by 2020. "Most of them are next-generation airplanes," he said, adding that (VIE)s plans for still larger planes, are on hold as the 747 "is an airplane using out-of-date technologies" and the A380 "is too big."

A321-231 (3315, VN-A356), delivery.

December 2007: Vietnam Airlines (VIE) reported revenues of VND20.37 trillion/+US$1.27 billion for 2007, a year-on-year increase of +15.5%, despite high fuel costs and increased competition. Pre-tax profits reached +US$23 million, up +6.4%. The airline also said it flew its eight millionth customer of the year, this month, and that it serviced 3.2 million customers on international flights, which made up 40% of total flights. "This is an impressive development for (VIE) in 2007, especially in the context of fierce competition in the international and domestic market and high fuel cost," said General Director, Pham Ngoc Minh. "In 2008, (VIE) is targeting nine million customers," said Minh, adding that the carrier aimed for revenue growth above >14% next year and 9 million passengers. The airline reported load factor of 75.4% in 2007, up +4.2 percentage points year-on-year.

SR Technics (SWS) reached a seven-year Integrated Engine Solutions (IES) deal with (VIE) covering three A330s. Contracts include (MRO) services on (PW4168)s to be conducted at (SWS)'s shop in Zurich.

(VIE), which is set to be part-privatized soon, to compete against new airlines and budget carriers entering the Vietnamese market, now has direct flights to 26 major cities in the Asia-Pacific region and Europe. It operates 47 airplanes, including 10 777s, 10 A320s, 11 A321s, and four A330s. It will receive four more A321s next year and four 787-8 Dreamliners ordered several years ago from 2009.

For shorter routes, (VIE) this month also ordered five ATR 72-500 turbo-propeller planes to add to its existing fleet of 10 airplanes from the Toulouse, France-based airplane maker. (VIE) placed an order for five ATR 72-500s with deliveries starting at the end of 2009. The airplanes, configured with 70 seats, will be used both to expand its current fleet and to replace its ATR 72-200s. (VIE) currently operates seven ATR 72-200s and three ATR 72-500s. It added the ATR 72-500s in 2001. "The growth of (VIE) is tied to its successful partnership with ATR," Chairman, Nguyen Sy Hung said. "This partnership has led to the development of a strong regional network connecting remote and small regions to main hubs."

Airbus (EDS) signed deals for 30 passenger jets with (VIE) and an airplane leasing company, the latest orders in a major shopping spree by the state-run Asian carrier. (EDS) signed contracts, agreed in principle and announced on October 1 in Paris, for ten A350-900XWB airplanes and twenty A321-200s at a ceremony in the capital Hanoi. The 30 (EDS) jets have a total catalogue price of nearly 3.8 billion dollars. The first A321s are due to be delivered by 2012, and the first wide body, long-haul A350s by 2016, the companies said.

The Vietnam Aircraft Leasing Company (VALC), which is co-owned by (VIE) and a number of state banks and companies in the communist country, bought ten of the A321s, while the airline bought the other 20 jets.

January 2008: Vietnam Airlines (VIE), which is state-owned, plans to launch an Initial Public Offering (IPO) for about 20% of the carrier. Shares will be offered first to employees and Vietnamese investors, according to numerous media reports, with international investors to be offered any remaining shares. The Vietnamese government made it clear that it will maintain about an 80% holding in the airline. The (IPO) may not occur for some time. At this point, the government has given the carrier permission only to hire a consultant to assess its value and devise an (IPO) strategy.

A321-231 (3355, VN-A357), delivery.

February 2008: Globe Air Cargo (GAC) will represent Vietnam Airlines (VIE) in France, Belgium, Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia under an exclusive General Sales Agreement (GSA) agreement. The contract extends responsibilities to capacity management, export and import handling supervision and equipment control. (GAC) will continue providing sales services for the airline in other parts of Europe.

March 2008: Vietnam Airlines (VIE) is set to give the Mitsubishi Heavy Industries regional jet program a boost with an order for up to 20 of the MRJ90 70/90-seat airplanes, according to widespread press reports.

June 2008: Japan Airlines (JAL) began placing its code on 2x-daily , British Airways (BAB) flights between London Heathrow and Manchester, and from August 14 will place its code on Vietnam Airlines (VIE)'s 4x-weekly, Hanoi - Nagoya service.

July 2008: Vietnam Airlines (VIE) reported a loss of -$5 million in the first half of 2008, "Reuters" reported from Hanoi. It posted a pre-tax profit of +$13.3 million in the year-ago semester. Revenue in the recently completed six-month period, climbed +28% year-over-year to $733 million and passenger numbers rose +15% to 4.4 million.

At the Farnborough Air Show, (VIE) selected the (V2500) to power an additional seven A321s it is leasing from ILFC (ILF) and AerCap (DEA). It already operates 12 (V2500)-powered A321s.

August 2008: Vietnam Airlines (VIE) is now flying from Hanoi to Nagoya nonstop with A321s. The state-owned carrier also flies to Tokyo, Osaka, and Fukuoka.

Sabre Airline Solutions signed multimillion-dollar contracts with (VIE) to provide its SabreSonic reservations system and collaborate with IBM to boost online shopping capabilities.

December 2008: A321-231 (3737, VN-A359) delivery.

April 2009: Vietnam Airlines (VIE) posted a first-quarter pre-tax profit of +VND24 billion/+$1.3 million, according to a statement cited by Dow Jones that provided no year-ago comparisons. (VIE)'s 2008 pre-tax profit was +$14 million. First-quarter 2009 revenue was VND6.12 trillion on a -5% fall in passenger numbers to 2.3 million. Load factor rose +11 points to 88% LF.

SR Technics (SWS) said (VIE) extended an existing Maintenance Repair & Overhaul (MRO) agreement covering 23 (CFM56-5B)s powering the airline's A320s for a further three years to 2012.

Pratt & Whitney (P&W) signed a five-year, Engine Management Program agreement with (VIE) covering on-wing performance monitoring services for 58 (PW4000) and (V2500) engines.

(VIE) received government permission to move forward with the purchase of 10 A321-200s for delivery in the 2011 to 2014 period and to join the SkyTeam alliance (STM), according to press reports from Vietnam.

A321-231 (3862, VN-A360) delivery.

June 2009: Vietnam Airlines (VIE) signed a contract valued at $41 million for two ATR 72-500s. (VIE) Chairman, Nguyen Sy Hung told (AFP) on the sidelines of the Paris Air Show that the carrier plans to sign a Memo of Understanding (MOU) later this week with Airbus (EDS) to purchase two A350-900s and 16 A321s.

ATR 72-212A (877, VN-B218), delivery.

September 2009: Lufthansa Technik (DLH)/(LTK) signed a three-year contract with Vietnam Airlines (VIE) for Maintenance Repair & Overhaul (MRO) on the (PW124)s powering seven ATR 72-200s and the (PW127)s on up to 16 ATR 72-500s. (LTk) also extended its deal with (VIE) covering (APU) (MRO) on its A321s until mid-2010.

October 2009: ATR 72-212A (886, VN-B219; 890, VN-B220), deliveries.

November 2009: SkyTeam (STM) alliance officials said Vietnam Airlines (VIE) and Tarom (TRM) will join the alliance as full members in June, according to a statement from the (STM) alliance's Incheon board meeting cited by "Bloomberg News." (TRM) signed an associate agreement with the (STM) alliance in May 2008, while (VIE) was invited formally last April. The (STM) alliance also is interested in Japan Airlines (JAL)/(JAS), currently a member of Oneworld (ONW). "We would be keenly interested to see whether (JAL)/(JAS) would be interested to join the (STM) alliance as a potential partner," alliance Chairman, Leo van Wijk said at a news conference, according to "Business Week."

Vietnam Airlines (VIE) has signed a Memo of Understanding (MOU) for four A380s, (VIE) and (EADS) (EDS) officials told reporters in Hanoi.
(EADS) (EDS) VP Marwan Lahoud said (VIE) is the first new A380 customer since 2006 and that the order was worth $800 million to $1.2 billion, according to "Agence France Presse."

(VIE) (CEO), Pham Ngoc Minh told "Bloomberg News" that the agreement marked the start of negotiations. An Airbus (EDS) spokesperson could not confirm the reports. (VIE) has ordered both the 787 and A350.

A321-231 (3005, VN-A351), wet-leased to Cambodia Angkor Air (AOL).

December 2009: 2 A321-231s (3964, VN-A361; 3966, VN-A362), (ILF) leased, A330-223 (299, VN-A374) and ATR 72-212A (896, VN-B223), delivery.

January 2010: Vietnam Airlines (VIE) earned a pre-tax profit of +$8.1 million in 2009, down -42.1% from the $14 million reported in 2008, according to a statement cited by "Agence France Presse" in Hanoi. (VIE) quoted the global recession and H1N1 flu as the primary culprits for the drop. Revenue declined 16.7% to $1.3 billion as passengers increased 5.7% to 9.3 million. It expects to carry 11 million passengers in 2010.

Japan Airlines (JAL) is code sharing on Vietnam Airlines (VIE)'s 5x-weekly, Hanoi - Osaka Kansai A321 service.

ATR 72-212A (899, VN-B227), delivery and wet-leased to Cambodia Angkor Air (AOL).

February 2010: Vietnam Airlines (VIE) will launch 4x-weekly, Hanoi - Yangon flights on March 2 aboard an F 70.

Honeywell (SGC) extended an agreement with Vietnam Airlines (VIE) covering (APU) Maintenance Repair & Overhaul (MRO) for three more years; the deal covers 36-300, 331-350, 36-150RR and 331-500 (APU)s on two F 70s, 10 A320s, five A330s and 10 777s.

ATR 72-212A (906, VN-B231), delivery and wet-leased to Cambodia Angkor Air (AOL).

April 2010: A321-231 (4277, VN-A366), AerVenture leased and ATR 72-212A (912, VN-A233), deliveries.

May 2010: Vietnam Airlines (VIE) will formally join the SkyTeam (STM) alliance on June 10, a move that will increase the (STM) alliance’s members to 10 carriers. Earlier this month, (VIE) and Air France (AFA) agreed that (AFA)’s flights between Bangkok and Paris will carry the (VIE) code. Delta Air Lines (DAL) already has USA Department of Transport approval to carry the (VIE) code. (VIE)’s entry into the (STM) alliance, which has been expected, means the (STM) alliance now has two members in the area. The Guangzhou base of (STM) partner, China Southern (GUN) is just 800 km/500 mi from Hanoi.

2 A321-231s (4311, VN-A322), (ILF) leased and (4315, VN-A367), AerVenture leased.

June 2010: Vietnam Airlines (VIE) will have 165 airplanes by 2020, up from 70 expected by the end of this year, said (CEO), Pham Ngoc Minh, detailing plans for increased services. By 2015, (VIE), which formally entered the SkyTeam (STM) alliance on June 10, will have 115 airplanes. The fleet will grow by +10 units this year.

As part of a drive to increase its international presence, (VIE) will this year start flights from Hanoi to Osaka, Yangon, Shanghai, and Kuala Lumpur, and from Ho Chi Minh City to Shanghai, Nagoya, and Yangon. (VIE) also plans to boost its presence in Europe and launch flights to the USA in the second half of next year.

(VIE) faces increasing competition at home from new private airlines, including associates of the low-cost carrier such as Australia’s Jetstar (IMU) and Malaysia’s AirAsia (ASW). With the expansion, (VIE) expects to carry 12 million passengers this year, up +28% from 2009, and increase sales by +31% to 32.24 trillion dong/$1.7 billion.

(VIE) is also eyeing an initial public offering (IPO), which may happen later this year, although no details have been announced. In 2008, the government said it planned to sell as much as 20% of (VIE).

ATR 72-212A (914, VN-B236), ex-(F-WWEJ).

July 2010: Vietnam Airlines (VIE) signed a 10-year fleet management program agreement with Pratt & Whitney (P&W) Global Service Partners covering (VIE)'s fleet of (PW4090) engines.

(VIE) selected the (IAE) (V2500) to power a new fleet of 36 A321s it has on order with deliveries scheduled to begin in April 2011. (IAE) valued the deal at more than >$700 million. (VIE) currently has 22 (IAE)-powered airplanes.

August 2010: Vietnam Airlines (VIE), as the national flag carrier, operates scheduled, jet airplane flights to 18 domestic destinations and 38 international destinations in IndoChina, Asia, Australasia, Europe, and North America.

10,354 employees (including 368 Flight Crew (FC), 1,300 Cabin Attendants (CA); & 800 Maintenance Technicians (MT)).

(IATA) Code: VN - 738. (ICAO) Code: HVN (Callsign - VIETNAM AIRLINES).

Parent organization/shareholders: Vietnamese government (100%).

Airline subsidiaries/shareholdings: Cambodia Angkor Air (49%); Vietnam Air Service (100%); & Vietnam Airlines Express (100%).

Alliances: American Airlines (AAL); Cambodia Angkor Air; Cathay Pacific (CAT); China Airlines (CHI); China Southern Airlines (GUN); Garuda Indonesia Airways; Japan Airlines International (JAL); Korean Air (KAL); Lao Airlines (LAO); Mandarin Airlines; Philippine Airlines (PAL); Qantas Airways (QAN); & Vasco - Vietnam Air Service Co.

Main Base: Hanoi Noi Bai International Airport (HAN).

Hub: Ho Chi Minh City Tan Son Nhat International Airport (SGN).

Domestic, Scheduled Destinations: BanMeThuot; Da Nang; Dalat; Dien Bien Phu; Haiphong; Hanoi; Ho Chi Minh City; Hue; Nha-Trang; Phu Quoc; Pleiku; Qui Nhon; Rach Gia; Tuy Hoa; & Vinh City.

International, Scheduled Destinations: Bangkok; Beijing; Busan; Frankfurt; Fukuoka; Guangzhou; Hong Kong; Kaohsiung; Kuala Lumpur; Kunming; Manila; Melbourne; Moscow; Osaka; Paris; Phnom Penh; Seoul; Siem Reap; Singapore; Sydney; Taipei; Tokyo; & Vientiane.

Japan Airlines (JAL) and Vietnam Airlines (VIE) will expand the scope of their code share agreement from October 1 to again offer (VIE)-operated code share flights between Nagoya Chubu and Ho Chi Minh as well as between Tokyo Narita and Hanoi.

A330-223 (962, VN-A377), delivery, ex-(EI-ELJ).

September 2010: Iberia (IBE) Maintenance inked a 3-year "Time & Material" contract with Vietnam Airlines (VIE) under which it will be responsible for the repair of line replaceable unit (LRU)s on (VIE)'s A320 fleet, including electro-hydraulic selectors and bypass valves. Repairs will be carried out at (IBE) maintenance facilities in Madrid.

Australia's Adelaide Airport is celebrating a new charter route from Vietnam Airlines (VIE). The airport announced that (VIE) will land in Adelaide for the first time on 20 November. (VIE) will operate charters flights from its Ho Chi Minh City base to Adelaide through the end of December.

The charter flight has been arranged through charter company, Aspirion Air. Adelaide Airport is hoping the charters could pave the way for scheduled flights from (VIE). (VIE) already operates scheduled flights to Melbourne and Sydney. "We see the attraction of charter flights such as these as an important step in our efforts to attract more international airlines and flights to Adelaide, and we have been working closely with the state government, Bunnik Tours and our aviation consultancy, Aspirion, to achieve this," says Adelaide Airport managing director, Phil Baker.

(VIE) is recruiting for various flight crew (FC) positions on their 777, A330, A320/321, ATR 72 airplanes.

ATR 72-212A (925, VN-B237), delivery, ex-(F-WWEZ).

January 2011: Vietnam Airlines (VIE) said it’s expecting a +$18 million pretax profit for 2010, more than double 2009’s figure. Total revenue for the year is expected to be up +49%. During 2010, (VIE) opened seven new international routes and four new domestic routes while joining the SkyTeam (STM) alliance. In total, (VIE) carried about 4 million international passengers and 8 million domestic passengers last year.

Rockwell Collins (RC) said that Vietnam Airlines (VIE) selected a full suite of its avionics, including the MultiScan Threat Detection System and Multi-Mode Receiver Global Landing System, for 36 new A321s. Deliveries will begin in 2011 and continue through 2014.

ATR 72-500 (939, VN-B240), delivery.

February 2011: Vietnam Airlines (VIE) is recruiting for various flight crew positions on the 777, A330, A320/321, ATR 72. Please contact doanbay919@vietnamair.com.vn or hungmy02@yahoo.com. Flight crew (FC) applicants must be under the age of <55.

October 2011: A330-223 (1256, VNA379), (ALE) leased.

December 2011: Vietnam Airlines (VIE) is considering buying control of JetStar Pacific (PAH), thereby aligning itself with Qantas (QAN) and becoming the latest Asian legacy carrier to have a low cost carrier (LCC) unit. This might be more urgent considering the pending launch of VietJet later this month. VietJet originally intended to take flight in 2007 before the global financial crisis came. Last year, it agreed to sell 30% of itself to AirAsia (ASW) before that deal fell through due to regulatory intransigence. So now it is launching with its own brand using 180-seat A320s leased from Alafco (ALF). It will initially connect Vietnam's three biggest cities: Hanoi in the North, Ho Chi Minh City in the South, and Danang in the center. Shorthaul international flights will come later.

(VIE) started twice a week service from the country's capital, Hanoi to Gatwick (LGW) and twice a week from its main business center, Ho Chi Minh City, both routes with 777s.

January 2012: KfW (IPEX)-Bank has been mandated by Air Lease Corporation as arranger and sole lender for a seven-year commercial debt financing of one new A330-200 leased to Vietnam Airlines (VIE). The transaction closed December 22.

Vietnam Airlines (VIE) is recruiting for various Flight Crew (FC) positions including the 777, A330, A320/321 Captains, and First Officers and ATR 72 Captains and First Officers. Please contact doanbay919@vietnamair.com.vn or hungmy02@yahoo.com. Additional details are available online. See FltOps.com and FAPA.aero.

April 2012: 8 orders 787-9 Dreamliners Air Lease Corporation (ALE) leased to be delivered in 2017 and 2018.

August 2012: Vietnam Airlines (VIE) has downgraded its profit forecast for the year as it deals with more competition.

(VIE) has asked the Ministry of Transport to adjust its business targets due to business difficulties during the first seven months of the year, "Vietnam News Agency" has reported.

“The airline blames fierce competition from newcomer low-cost carrier (LCC) VietJet Air as one of the reasons for the missed targets due to a loss of market share, especially for the two major routes from Hanoi to Ho Chi Minh City and from Ho Chi Minh City to Da Nang,” (VIE) reported.

(VIE) forecasts profits of nearly +VND69 billion/+$3.3 million after tax for the year, VND300 billion/$14 million, or about 20% of what was expected.

Total revenue is estimated to be VND52 trillion, down by around -VND2.4 trillion/-$114 million), or 4.6% of the target.

(VIE) earned about +VND13 billion/+$0.6 million in profit over the first five months. The first five-month revenue is VND21 trillion/$1 billion, or about 39% of the year target, Chairman, Pham Viet Thanh said according to (VIE).

Some 78% of tickets were sold during the first five months, -3% lower than expected. In July, revenue from the domestic market decreased by -2.5% compared to the same period last year and is far short of the target.

(VIE) and low-cost carrier (LCC) Jetstar Pacific (PAH) are planning to merge in February, which is expected to cost (VIE) up to $6 million.

September 2012: The Vietnam Aircraft Leasing Company delivered the second A321-200 airplane to Vietnam Airlines (VIE) on September 5, to be used on (VIE)’s medium-haul routes.

October 2012: Vietnam Airlines (VIE) began operating its third route to Vinh (VII) in northern Vietnam on October 28. The SkyTeam (STM) Alliance carrier now operates 4x-weekly from Da Nang (DAD) on Vietnam’s central coast using ATR 72 airplanes, complementing its existing services from Ho Chi Minh City and Hanoi.

November 2012: Kenya Airways (KEN) has a code share agreement with Vietnam Airlines (VIE) under which (VIE) will place its code on (KEN) Nairobi - Bangkok (BKK) service. (KEN) will place its code on (VIE) service to (BKK) from Hanoi and Ho Chi Minh City.

December 2012: Vietnam Airlines (VIE) launched services on its first route to Indonesia on 2 December, as it commenced flights from Ho Chi Minh City (SGN) to Jakarta (CGK). Flights on the 1,900 km route are offered with four-weekly frequencies in competition with AirAsia Indonesia (AWR)’s also 4x-weekly departures, and break the latter’s monopoly in the market from Ho Chi Minh City to the Indonesian capital. Vietnam Airlines (VIE) deploys A321s on the route. It is remarkable that neither (VIE) nor Garuda (GIA) has flown this route (connecting two of the most important cities in the (ASEAN) region) before now.

January 2013: Vietnam Airlines (VIE) inaugurated its first flight from Da Nang (DAD) to Cambodia on January 21. Daily services from the port city in central Vietnam to Siem Reap (REP), the gateway to Cambodia’s historical region of Angkor in the north-west of the country, will be operated with a 66Y-seater, ATR 72 on seasonal basis until March 30. Competition in the market comes from Silkair (SLK), which already operates on the route with 3x-weekly departures.

February 2013: Vietnam Airlines (VIE) commenced operations on the domestic route from Ho Chi Minh City (SGN) to Thanh Hóa (THD) on February 5. Located on the northern Vietnamese coast south of the Pink River delta, Thanh Hóa Airport was only allowed mixed military and civilian use in December 2012, and the new 6x-weekly service is currently its only route. The airport serves the Thanh Hoa province approximately 135 km south of Vietnam's capital, Hanoi.

(EADS) (SECA) entered into a time & material agreement with Vietnam Airlines (VIE) for the maintenance of (VIE)’s (PW127M) engines powering its ATR 72 airplanes.

SEE VIDEO OF VIETNAM AIRLINES LGW - SGN - -

April 2013: Vietnam Airlines (VIE) introduces weekly, Nha Trang - Moscow Domodedovo 777-200 flights. From October 7, it will increase to 2x-weekly. (VIE) adds summer service London Gatwick - Ho Chi Minh City from 2x-weekly to 3x-weekly.

May 2013: Vietnam Airlines (VIE) added summer service from London Gatwick - Ho Chi Minh City from 2x- to 3x-weekly.

July 2013: Vietnam Airlines (VIE) linked Da Nang (DAD) to Seoul Incheon (ICN), making it the third Vietnamese city in its network to be linked to the South Korean capital with non-stop services. Beginning on July 1, (VIE) offers 3x-weekly flights on the 3,000 km route which it operates using A321s. Vietnam Airlines (VIE) faces competition from Korean Air (KAL)’s four and Asiana Airlines (AAR)’s 2x-weekly frequencies.

September 2013: FAPA . . . Future & Active Pilot Advisors.

See FAPA.aero: Pilot (FC) Career Conferences & Job Fairs

Note: The next Pilot Job Fair will be held in Chicago next month.

According to FAPA.aero, Vietnam Airlines (VIE) is recruiting various (FC) positions including 777, A330, A320/A321 Captains and First Officers (FC) as well as for ATR 72 and Fokker F 70s. (VIE) sent (FC) recruiters to the FAPA.aero Pilot (FC) Job Fair in Miami in January.

October 2013: Vietnam Airlines (VIE) increases Hanoi - Busan service from 7x- to 12x-weekly and Ho Chi Minh City - Seoul Incheon from 7x- to 11x-weekly on October 27. (VIE) increases Moscow (DME) - Nha Trang to 2x-weekly (from 1x) with Boeing 777 service. Beginning February 1, a third weekly flight will be added using A330s.

December 2013: A321-231 (5916, VN-A608), ex-(D-AZAF), delivery.

January 2014: Vietnam Airlines (VIE) now serves Vientiane (VTE) in Laos non-stop from three destinations in Vietnam. On January 12th, (VIE) began four times weekly flights on the 330 km sector from Vinh City (VII) using ATR 72s. (VIE) already serves Vientiane from Hanoi (with daily flights) and from Ho Chi Minh City (also daily flights), though the latter operates via Phnom Penh in Cambodia.

April 2014: Vietnam Airlines ((IATA) Code: VN, based at Hanoi) has scheduled its Initial Public Offering (IPO) for September this year the "Vietnam Economic Times" quoted Deputy Transport Minister, Nguyen Hong Truong, as saying.

Following the (IPO), which is still subject to approval from Prime Minister, Nguyen Tan Dung, the government intends to retain about 70 - 80% of the total capital in Vietnam Aviation Corporation (Vietnam Airlines' parent).

Dung said the move is part of Hanoi's plans to privatize various sectors of the Vietnamese economy.

The Vietnamese national carrier will resume its long-haul expansion plans next year having put them on hold in the wake of delays in the 787 and A350 programs. Vietnam Airlines (VIE) expects to take delivery of its first 787-9 in May next year, followed by its first A350-900s in June.

(CEO), Pham Ngoc Minh said (VIE) expects to take another six 787-9s/A350-900s during the second half of 2014 with one delivery every month.

(VIE) currently operates 90 airplanes to 18 countries, and serves 56 destinations, 110 routes, and 342 daily flights.

May 2014: 2 A320-214s (648; & 650) to new Thailand start-up airline, Nine Star Airways (9SA).

July 2014: Vietnam Airlines (VIE) now serves Tokyo Narita (NRT) non-stop from three destinations in Vietnam. On July 16th, (VIE) began four weekly flights on the 3,866 km sector from Da Nang (DAD), using its 184-seat A321s. The Vietnamese flag carrier already serves Tokyo’s primary airport from Hanoi (daily) and from Ho Chi Minh City (2x-daily). No other carrier serves the SkyTeam (STM) Alliance member’s new airport pair.

Vietnam Airlines (VIE) launched international services from Phu Quoc. The island airport is growing rapidly.

Phu Quoc in southwest Vietnam continues to see a surge in capacity as the island emerges as a popular tourist destination. Phu Quoc now has Vietnam’s fifth largest airport, having risen four places since a new airport opened in late 2012.

Phu Quoc seat capacity has more than doubled over the past two years, driven by the launch of services from Vietnam’s two low cost carriers (LCC)s, VietJet Air (VJE) and Jetstar Pacific (PAH), and expansion from flag carrier Vietnam Airlines (VIE). Phu Quoc is poised for further rapid growth in (4Q) 2014 as it becomes the 6th Vietnamese airport with international services, as Vietnam Airlines (VIE) launches flights to Singapore and Cambodia’s Siem Reap.

Phu Quoc International Airport is well placed to attract more new services, including potentially scheduled flights from foreign carriers. It is already served by a limited number of international charter services.

The island resort airport of Phu Quoc is currently served by 218 weekly flights to three domestic destinations, providing about 34,000 weekly seats. This makes it Vietnam’s fifth largest airport based on current seat capacity.

Only the three main cities of Ho Chi Minh, Hanoi, and Da Nang, as well as the beach destination of Nha Trang (located on Vietnam’s south-central coast) have larger airports.

Vietnam top 10 airports ranked on total seat capacity: July 13, 2014 to July 20, 2014:

Rank - Airport - Total Seats
1 (SGN) Ho Chi Minh City Tan Son Nhat Airport 598,445
2 (HAN) Hanoi Noi Bai Airport 422,155
3 (DAD) Da Nang Airport 150,352
4 (CXR) Nha Trang Cam Ranh Airport 59,622
5 (PQC) Phu Quoc International Airport 33,916
6 (HUI) Hue Phu Bai Airport 29,584
7 (VII) Vinh City Airport 29,044
8 (HPH) Hai Phong Cat Bi Airport 26,140
9 (DLI) Da Lat Lien Khuong Airport 21,826
10 (BMV) Buon Ma Thuot Airport 16,522

Phu Quoc Airport currently only handles scheduled domestic flights but was designated an international airport when it opened in December 2012. Previously Phu Quoc had a smaller airfield which could only accommodate regional airplanes. Phu Quoc’s original airport was the ninth largest in Vietnam, based on capacity figures from 2012.

Vietnam has traditionally only had three international airports: – Ho Chi Minh, Hanoi and the much smaller Da Nang, which has experienced rapid international growth from a very small base since a new international terminal was opened in late 2011. But international services were launched at Nha Trang in 2013 and at Vinh in early 2014, giving Vietnam five airports with scheduled international services.

Phu Quoc handled its first international flight on February 14th 2014: a charter service from Russia. Scheduled international services are now set to begin in November 2014. (VIE) announced on July 14th 2014 plans to begin international operations at Phu Quoc on November 1st 2014 with two weekly A321 flights to Singapore and three weekly ATR 72 flights to Siem Reap.

The two international routes will initially only provide about 1,100 weekly seats but represent a major breakthrough in Phu Quoc’s development. Vietnam is keen to develop the island into a major international tourist destination. Vietnam sees Phu Quoc as potentially emerging as the next Phuket or Samui, aiding efforts by Vietnam’s fast-growing tourism sector to boost its global profile and close the gap with much larger Thailand.

The new airport on Phu Quoc was a major investment for the Vietnamese government as it includes a 3,000 m runway capable of handling wide body airplanes and a terminal with customs and immigration facilities that is designed to handle up to 2.6 million passengers per year. In its first year of operation in 2013, the airport handled only 683,000 passengers with foreign visitors accounting for about 37% of the traffic. But authorities are optimistic the 2.6 million passenger figure will be reached by 2020, boosted by international services and an influx in foreign visitors.

To encourage international tourist growth, Phu Quoc has been established as the only visa free zone in Vietnam. The ability to visit the island without a visa, lifts a major barrier and makes Phu Quoc competitive with popular islands in other parts of Southeast Asia including Malaysia and Thailand. It also gives Phu Quoc a competitive advantage over the Vietnamese beaches near Nha Trang or Da Nang, where visas are still required.

Vietnam is also investing heavily in improving the infrastructure in Phu Quoc, in particular the island’s notoriously bad roads. Several new hotels are also being built to prepare for the expected influx of visitors.

Phu Quoc has been trying to woo foreign carriers since the new airport opened in late 2012 but airlines outside Vietnam have been reluctant to launch services, primarily because of infrastructure concerns. The new Vietnam Airlines (VIE) services could prompt several airlines to relook at the market, particularly if the flag carrier can prove there is sufficient demand to support international services.

The new routes could prove challenging and (VIE) is likely launching them as part of a government mandate. But Phu Quoc has huge potential and with the right marketing campaigns the services could succeed at boosting international visitor numbers.

Phu Quoc - Singapore will be a short 90 minute flight, minimizing (VIE)'s risk exposure. However, filling a 184-seat A321 will not be easy, particularly during the initial start-up period and off-peak months. Phu Quoc is not a well known destination in Singapore and will have to compete for Singaporean outbound tourist traffic with several popular beach destinations that have more frequent service, including from (LCC)s.

As the local Singapore - Phu Quoc market is relatively small, connections to other international destinations will likely be needed for the route to be viable. (VIE) will have to rely on interline connections as it currently only code shares on its Singapore routes with Jet Airways (IMU) and Etihad Airways (EHD).

Vietnam Airlines (VIE) currently operates five daily flights to Singapore, including three from Ho Chi Minh and two from Hanoi, all with A321s. These are very different markets from Singapore - Phu Quoc as on its existing Singapore routes (VIE) mainly carries Vietnamese passengers heading to Singapore for holidays or work.

Singapore Airlines (SIA)'s regional subsidiary, SilkAir (SLK) could be a better fit for the Singapore - Phu Quoc route, as it would be able to offer online connections with (SIA) throughout Asia, Australia, Europe and North America. (SLK) is now the only airline from Southeast Asia serving Da Nang.

But SilkAir (SLK) is unlikely to launch Phu Quoc or any other secondary market in Vietnam until it is more proven. Improvements in the island’s overall infrastructure and the construction of more high end resorts would also be key to wooing an airline like (SLK). It will take more than simple tourism and airport incentives.

Phu Quoc has also tried to attract foreign (LCC)s including AirAsia (ASW). But at least for now, the market is probably not mature enough to support any foreign carrier (full-service or low-cost). Vietnam Airlines (VIE)'s role is probably to help seed the market and pave the way for scheduled services from foreign carriers.

The other new Vietnam Airlines (VIE) international destination from Phu Quoc, Siem Reap, is even lower risk as it a short turboprop flight. (VIE) also can leverage its strong position in the Cambodian market, where it is the largest foreign airline and has a 49% stake in flag carrier, Cambodia Angkor Air (AOL). Its knowledge of the Cambodian market should help (VIE) market the new Phu Quoc - Siem Reap route, which will be mainly geared to foreigners visiting the tourist town of Siem Reap and surrounding temples.

Foreigners now visiting Cambodia often combine Siem Reap with Thailand, including a stay at a Thai beach destination. Being able to offer Phu Quoc as an alternative beach destination to Thailand, could gain traction if marketed well in source markets such as Australia, Japan, and Europe.

Cambodia is also often combined with Vietnam, but not with Phu Quoc. Vietnam Airlines (VIE) already serve Siem Reap from Ho Chi Minh, Hanoi, and Da Nang, as well as from the popular Laos tourist town of Luang Prabang. A fifth route from Siem Reap to Phu Quoc increases the options available to leisure passengers. (Cambodia Angkor Air (AOL) also operates the Siem Reap to Ho Chi Minh and Hanoi routes and links Siem Reap with Bangkok and five destinations in mainland China).

The Siem Reap - Phu Quoc route however could be controversial in Cambodia, which is keen to develop the Cambodian beach town of Sihanoukville. Cambodia Airports opened an airport in Sihanoukville several years ago, but so far has only been able to attract limited domestic service. Cambodia Angkor Air (AOL), which (VIE) has traditionally managed, only currently serves the airport with one daily ATR 72 flights from Siem Reap and has been reluctant to expand at Sihanoukville.

Cambodia has been keen to attract more regular domestic services at Sihanoukville as well as international services as part of an effort to boost its tourism sector and attract Siem Reap visitors to stay in Cambodia rather than hop over to Thailand or Vietnam. Sihanoukville and Phu Quoc are seen as competitors as they are only about 50 km apart (Phu Quoc is located near the Vietnam - Cambodia border).

Vietnam Airlines (VIE)'s investment in a Phu Quoc - Siem Reap link rather than a new route at Sihanoukville through its Cambodian joint venture may end up ruffling feathers. But the reality is Sihanoukville has even bigger infrastructure challenges than Phu Quoc. With the Vietnamese government willing to make the necessary investments to drive growth at Phu Quoc, the island is well positioned to make its way onto the global tourist map and attract more international services.

Phu Quoc International Airport has already come a long way since it opened in December 2012. The opening of a new airport on the island led immediately to the launch of services on the Ho Chi Minh - Phu Quoc route from VietJet Air as well as an increase in capacity from Vietnam Airlines (VIE).

(VIE) initially upgraded about a third of its flights on the Ho Chi Minh - Phu Quoc route from ATR 72 turboprops to A321s, and also launched five weekly A321 flights on the longer Hanoi - Phu Quoc route. The expansion from (VIE) and entry of VietJet (VJE), which initially served Phu Quoc with one daily flight, led to an immediate +60% increase in seat capacity.

Over the past year, Phu Quoc has continued to see more expansion, which has more than offset the March 2013 suspension of services at independent regional carrier, Air Mekong (MKE). Jetstar Pacific (PAH) entered the market in December 2013, becoming the third carrier on the core Phu Quoc - Ho Chi Minh route. (VIE) and VietJet (VJE) have both added capacity on Phu Quoc - Ho Chi Minh, while VietJet (VJE) joined Vietnam Airlines (VIE) on the Hanoi - Phu Quoc route.

(VIE) currently operates 46 weekly frequencies on Phu Quoc - Ho Chi Minh. It has gradually upgraded more flights from ATR 72s to A321s and now operates 19 turboprop frequencies and 27 jet frequencies. (VIE) has grown seat capacity on the Phu Quoc - Ho Chi Minh route by about +14% compared to July 2013 and about +55% compared to July 2012 (when the old airport, which could not handle A320 family airplanes, was in use.)

VietJet Air (VJE) also has expanded rapidly on Phu Quoc - Ho Chi Minh route and currently offers three daily flights, giving it 3,780 weekly seats and about a 34% share of total capacity. Jetstar Pacific (PAH) currently operates one daily flight and accounts for an 11% share, while Vietnam Airlines (VIE) has a market leading 55% share.

A capacity increase from Jetstar Pacific (PAH) is likely at a later stage as the route matures.

Phu Quoc - Ho Chi Minh is now the seventh largest domestic route in Vietnam.

Total capacity on the Phu Quoc - Ho Chi Minh route is currently over >11,000 weekly one-way seats, up about +65% from July 2013 and +114% from July 2012 levels. Phu Quoc - Ho Chi Minh is now the seventh largest domestic route in Vietnam.

There will be a reduction in capacity on Phu Quoc - Ho Chi Minh after the current peak summer season concludes in August 2014, but this is normal. Phu Quoc has traditionally seen large seasonal increases in capacity in December to February and again in June to August. Phu Quoc’s lowest season is September to November, as the island is often rainy during this period and it is also the low season for domestic tourism in Vietnam.

Back in 2012, the Phu Quoc - Ho Chi Minh route was also served by Air Mekong (MKE) with 19 weekly CRJ900 regional jet flights. The opening of a new airport at Phu Quoc essentially destroyed Air Mekong (MKE)’s niche, making it difficult for (MKE) to compete as (LCC)s entered and as Vietnam Airlines (VIE) was able to up gauge to A321s. Air Mekong (MKE) was headquartered in Phu Quoc and was heavily dependent on the Phu Quoc market, although its base was in Ho Chi Minh.

Air Mekong (MKE) also had been the only carrier offering non-stop flights from Phu Quoc to Hanoi, a route other carriers were unable to serve from the old airport, as it was too long for turboprops and only Air Mekong (MKE) operated regional jets.

Vietnam Airlines (VIE) currently accounts for over 50% of capacity at Phu Quoc.

Phu Quoc - Hanoi is currently served by two daily flights from both VietJet Air (VJE) and Vietnam Airlines (VIE). (VIE) will cut back to one daily frequency from the beginning of September, while VietJet (VJE) will suspend the route entirely, for the off-peak season. (VietJet (VJE) will maintain three daily flights on Phu Quoc - Ho Chi Minh during the off season, while (VIE) will cut back to between three and five daily flights).

(VIE) also operates one daily year-round flight from Phu Quoc to Can Tho in southern Vietnam using ATR 72s. (VIE)’s total domestic capacity at Phu Quoc is currently about 18,800 seats, which gives it about a 55% share of the market compared to 37% for VietJet (VJE) and 7% for Jetstar Pacific (PAH).

Total scheduled capacity at Phu Quoc is currently about 34,000 weekly seats. This represents a +79% increase compared to July 2013 levels and about a +130% increase compared to July 2012.

The airport recorded +34% passenger growth in fist half (1H) 2014 to 450,000 passengers. Continued rapid growth is likely, as the airport starts to attract scheduled international services.

Phu Quoc remains a relatively unknown destination. But visitor numbers and passenger traffic are rising fast.

Often a new airport at a secondary destination does little to drive traffic and turns into a white elephant. Phu Quoc International Airport has proven to be an exception, and is poised for more rapid growth as Phu Quoc and Vietnam overall, continue to emerge as a major tourist destination.

August 2014: (IATA) is calling for Vietnamese authorities to ensure there are appropriate regulatory structures in place to oversee an expected wave of airport construction and privatization.

(IATA) welcomes Vietnam’s efforts to improve its aviation infrastructure, (IATA)’s Director General & (CEO), Tony Tyler said during a speech in Hanoi. To accommodate projected traffic increases, the government has drafted an aviation master plan that includes a goal of having 26 airports by 2020. Expansion is being undertaken at the major Hanoi and Ho Chi Minh City airports, and there are also plans for a new, much larger, international airport near Ho Chi Minh City to be completed by 2020.

However, Tyler stressed there should be “careful planning and industry consultation leading to a well-thought-out regulatory structure in advance of any change to the current structure and ownership of Vietnam’s airports.” In particular, (IATA) is recommending the establishment of an “effective independent economic regulator.” Such a step would help ensure “fair charging schemes aligned with (ICAO) policies.”

According to (IATA), Vietnam has signaled its intention to open its airports to foreign investment and management, and to privatize the Airports Corporation of Vietnam. While privatization would provide access to much-needed investment, Tyler said (IATA) has “seen enough spectacular examples of unintended negative consequences to urge caution.” Having a strong economic regulator would help “balance the market power of privatized airports.”

September 2014: Gogo has won bidding to provide Vietnam Airlines (VIE) with In-Flight Connectivity (IFC) services on (VIE)’s fleet of Boeing 787 airplanes and a majority of its Airbus A350 airplanes. While both companies are currently negotiating a definitive agreement, the fleet will likely be outfitted with a mix of Inmarsat's new GX Aviation Ka-band service and SwiftBroadband connectivity. (VIE) is expected to be the first commercial airline to use the technology, with the commercial global services set to begin at the end of June 2015.

"GX Aviation is gathering momentum fast. The first satellite is in operation and the other two satellites are awaiting launch to support a global commercial service expected at the end of June 2015," said Leo Mondale, President of Aviation at Inmarsat. "As the technology challenges are now largely met, we are able to enter into firm contracts with airline customers, and it is particularly exciting to have Vietnam Airlines (VIE), who are expanding rapidly in the Asian market, as our GX Aviation launch customer.”

November 2014: Vietnam Airlines (VIE) has received the first formal submissions from foreign companies seeking to become strategic investors in the airline, Vietnamese officials said.

Two such entities have applied to buy a stake in the government-owned carrier, and there is enough interest from others to suggest there will be more applications, airline executives tell local media. (VIE) is not revealing the names of the two that have already made submissions, although the carrier has previously said it held discussions with All Nippon Airways (ANA).

The Vietnamese government plans to sell 20% of (VIE) to one or more strategic stakeholders, and it is hoping to gain an airline investor that could also become a partner. The government is launching an initial public offering (IPO), releasing a further 5% of (VIE)’s shares to individual investors and employees. While the government will initially retain 75% of the airline shares, it plans to eventually reduce this to 65%.

The (IPO) is scheduled to begin November 14, although the selection of strategic investors will occur on a separate timetable.

According to the prospectus, strategic investors must hold their stake for at least five years, and cannot own part of a rival Vietnamese carrier at the same time. The government will divide applicants into two categories (airlines and financial companies). The criteria to be considered for airlines will include network, brand, technology, product, and cooperation potential, while for other companies, the criteria will include “financial capacity” and investment experience in the airline industry.

Potential investors for the second round of the process are due to be selected by December 8, and final binding bids are to be received by January 17. A preferred investor will be chosen for negotiations by February 16, and the contract is expected to be signed by March 3.

In the prospectus, (VIE) said its priority will be finding an investor from the airline category, although it says that “if the negotiations [with airlines] do not succeed, we will move on to … foreign financial investors.”

December 2014: Vietnam Airlines (VIE) announced a new General Sales Agreement (GSA) relationship with (APG), effective January 1, 2015.

February 2015: News Item A-1: Vietnam Airlines (VIE) will take delivery of the 1st of 19 Boeing 787-9s in May, and the 1st of 14 Airbus A350-900s in June. (VIE), the SkyTeam (STM) carrier ordered the Boeing 787-8 in 2007 and converted the order to the larger model 787-9 in October 2010. It also ordered the A350s in 2007.

The 787-9 fleet will offer 2 different cabin layouts (the 274-seat cabin features 28C business class, 35PY premium economy, and 211Y economy class seats; the 311-seat configuration features 28C business class and 283Y economy class seats. 787-9 deliveries should be completed by 2018.

The 1st 787-9 scheduled services will begin in June from Ho Chi Minh City and Hanoi to London Gatwick. From November, (VIE) will add 787 flights to Frankfurt, exchanging 777-200ERs on both routes.

(VIE) became the 2nd carrier after Qatar Airways (QTA) to add the Airbus A350-900 to its fleet. It also offers 2 different cabin layouts, each featuring 305 seats (29C business/45Y premium economy/231Y economy, and 29C business/36PY premium economy/240Y economy).

The 1st A350 route is scheduled from Vietnam to Paris Charles de Gaulle, making (VIE) the 1st carrier in the Far East to fly the A350 XWB. (VIE)’s fleet also includes Airbus A330-200s, A320/321s, ATR 72s, Boeing 777-200ERs and Fokker F 70s, according to (VIE)’s website.

News Item: SEE PHOTO - - "VIE-777-200ER - NEW LIVERY 2015-02".

Vietnam Airlines (VIE) introduced a revised livery ahead of receiving its Boeing 787-9 Dreamliners and Airbus A350-900s later this year. The changes include the grey cheatline replaced with a gold and white arched cheatline, a larger lotus logo on the tail, while (VIE)'s logo has been removed from the engine cowlings, and a revised font used for all airline name titles.

March 2015: News Item A-1: Vietnam Airlines (VIE) will resume flights between Chengdu and Hanoi from March 29 after over half a year's suspension from May 26 last year. The 3x-weekly service will be operated on Wednesdays, Fridays and Sundays, using an A321 airplane with 184Y seats.

The Chengdu-bound flight is scheduled to take off from Hanoi at 12:30 pm and land in Chengdu at 15:40 pm, with the return trip leaving Chengdu at 16:40 pm and reaching Hanoi at 17:50 pm.

China's aviation industry is set to enter the summer to autumn flight season from March 29. With the resumption of the service, it takes only about 2 hours for passengers to fly from Chengdu to Hanoi.

News Item A-2: Vietnam Airlines (VIE) first A350-941 (14, F-WZFI), AerCap (DEA) leased, rolled out of the Airbus (EDS) paint shop in Toulouse.

SEE PHOTO - - "VIE-A350-900 ROLL-OUT-2015-03.jpg."

The airplane features the revised version of its distinctive blue and gold lotus livery.

April 2015: London’s Heathrow Airport (LHR) has created its 1st new landing slots since 1996, paving the way for Vietnam Airlines (VIE) to begin operations there.

(VIE) switched its London Gatwick operations from Hanoi (HAN) and Ho Chi Minh City (SGN) to London Heathrow (LHR) on March 31st and April 1st, respectively. Both routes will be operated 2x-weekly by the (VIE)’s 777-200s and will face no direct competition from any other carrier. (VIE) will be based at Terminal 4 alongside its fellow SkyTeam (STM) Alliance carriers.

May 2015: News Item A-1: Vietnamese flag carrier, Vietnam Airlines (VIE) plans to implement code share links with its part-owned low-cost carrier (LCC) Jetstar Pacific (PAH), and has introduced new schedules to India as part of its newly announced expansion.

In what it called “the 1st phase of code shares,” (VIE) will share schedules with all Jetstar Pacific (PAH)’s domestic flights on an immediate basis. This will give it extended local access to destinations such as Da Nang, Haiphong, Hue, Nha Trang, Phu Quoc, and Vinh City, and also give effective access to (PAH)’s 15-strong Airbus A320 regional fleet.

(VIE)’s expansion plans come as a response to aggressive expansion and marketing moves by local competitors including start-up (LCC) VietJet (VJE). (VJE) has recently announced impending code share agreements with “major airlines” and has offered 50,000 free tickets to passengers traveling selected routes to Singapore, Thailand, Taiwan, and Korea as well as on domestic routes.

(VIE)’s plans to code share its international schedules with Jetstar Pacific (PAH) (which (VIE) part owns with a 70% stake) will be implemented later this year, (VIE) said.

The move will be complemented by the opening of a new Ho Chi Minh City to Mumbai direct schedule in November.

(VIE) has already been in talks with both Indian and Vietnamese authorities, who have given initial approval as part of a move to increase bilateral trade and tourism links between the countries. (VIE) already operates a code share with Jet Airways (JPL) on its Mumbai routes, but the flight is not direct and stops in Bangkok.

Vietnamese Minister of Transport, Dinh La Thang said authorities were looking at more direct routes linking India and Vietnam, and did not rule out the possibility of a 2nd Hanoi to New Delhi direct schedule.

News Item A-2: (VIE)’s new 787-9 has rolled out of Boeing (TBC)’s paint shop at Paine Field in its new livery. It is now undergoing pre-flight testing. It has completed its 1st “B1” test flight. The newly painted 787 Dreamliner took off from Paine Field in Everett, Washington at 1409 hrs on May 14, with a Boeing aircrew (FC) who checked all of the airplane’s systems during the 2 hour, 36-minute flight. The 787 will now undergo several more tests and a customer flight before being delivered to (VIE).

News Item A-3: See video "Visit Ho Chi Minh City (very quickly)" - -
https://vimeo.com/32958521

See video "Visit Da Nang + Fireworks show (very quickly)"
https://vimeo.com/66632969?from=outro-local

See video "VJE-Visit Hoi An (very quickly)" - -
https://vimeo.com/47798422

June 2015: News Item A-1: Vietnam Airlines’ 1st A350 XWB took flight

SEE PHOTO - "VIE-A350 XWB - 1st Flight.jpg."

The 1st Airbus A350 XWB destined for Vietnam Airlines (VIE) flew June 1, beginning a rapid ramp-up of A350 production that will see three new operators take delivery of the airplane this year.

Airbus handed over the 1st Airbus A350-941 XWB to its 2nd customer, Vietnam Airlines (VIE) on June 30th.

The aircraft is the first of a 14-aircraft order; the deal is for 10 to be purchased directly by (VIE) and 4 supplied through lease companies. This aircraft is on lease from AerCap (DEA).

The aircraft will be used for a new nonstop A350 Noi Bai International, Hanoi to Charles de Gaulle International, Paris schedule.

(VIE) previously cited September as the start date for its Paris schedule to replace the current 6x-week service using a Boeing 777. The new A350 flights will use a 3-class layout, with 29C seats that convert to full flat beds in business class, 45PY seats in premium economy and 231Y in economy.

(VIE) Executive VP Commercial, Trinh Ngoc Thanh said the handover of the A350 marked the start of a major upgrade of Vietnam Airlines (VIE)’s long-haul fleet. The new aircraft will join (VIE)’s existing Airbus fleet of 59 airplanes, comprising 49 A321s and 10 A330s.

Qatar Airways (QTA) was the 1st carrier to take delivery of the A350 earlier this year.

2 more airlines are scheduled to take delivery of A350s later this year (Finnair (FIN) and (TAM) (TPR)).

To date, Airbus (EDS) has seen strong demand for the A350 from Asian carriers. Orders have been also placed by Air China (BEJ), Asiana Airlines (AAR), Cathay Pacific Airways (CAT), China Airlines (CHI), Hong Kong Airlines (CRY), Japan Airlines (JAL)/(JAS), Singapore Airlines (SIA), SriLankan Airlines (LNK), and Thai Airways (TII).

However, AirAsia X (ASX), the Malaysia-based long-haul, low-cost carrier (LCC) has hinted it may delay its 10-strong order for A350s due to the slowdown in the region following several recent fatal accidents.

News Item A-2: See video "VIE-787-9 - Fast Takeoff" - -

News Item A-3: The Vietnamese government has approved plans to build a new $18 billion airport near Ho Chi Minh City that will offer a projected 100 million passenger capacity to replace the congested Tan Son Nhat International Airport.

The proposal for the new airport, to be named "Long Thanh International," was voted through the country's national Assembly with a near-90% majority. The airport, due to be built on a Greenfield site some 25 miles outside Ho Chi Minh City, is scheduled to start operations in 7 years.

Construction is slated to begin next year, and will be carried out in 3 phases, supervising engineers Japan Airports Consultants said. The 1st phase, which costs $7.8 billion, will see the 1st runway, passenger terminals, air traffic control (ATC) tower, and support service buildings completed and ready for use by 2023.

Initial capacity is set for 17 million passengers per year, but that will rise to 100 million passengers and five million tonnes of cargo a year by 2050.

The existing maximum capacity at Tan Son Nhat is around 25 million passengers, and projections indicate it will hit that in 2 years. It currently handles 20 million passengers a year, but Vietnam has seen dramatic expansion of both full service and low-cost airline schedules in recent years, causing delays and chronic congestion at several airports. Once completed, the new airport would give Vietnam 1 of the largest passenger capabilities in SE Asia.

July 2015: News Item A-1: Vietnam Airlines (VIE) has rolled out a new corporate identity to coincide with the launch of a major fleet upgrade.

(VIE), the Vietnam flag carrier, which has just seen the roll out of its 1st Airbus A350-900 and Boeing 787-9, is to take +13 more A350s and +18 787s to replace its aging Boeing 777 and Airbus A340 aircraft.

(VIE)'s new look was unveiled at a ceremony at Hanoi's Noi Bai International Airport, and marks what the management calls "a major leap forward in [our] plans to establish [ourselves] as 1 of Asia's premier airlines by 2020."

(VIE) is scheduled to receive 8 newly re-branded aircraft during the remaining months of this year.

(VIE)'s new image will see the implementation of a new logo and uniforms, new livery and new cabin specifications across its aircraft that will bring "modernity and uniformity, dynamism, reform and development, while respecting history and traditions," according to (VIE). (VIE) Pham Viet Thanh Chairman said (VIE) implemented the new brand to meet new demands, create differentials and add value to customers. "With the launch of our new corporate identity, we are determined to make (VIE) a strong airline, bringing a perfect blend of Vietnamese cultural traditions and state-of-the-art technologies."

The commissioning of the 2 newly liveried aircraft will mean (VIE) is the 1st Asian airline to operate both A350 XWB and 787 wide bodies at the same time, and the 1st to operate 787-9 nonstop service between SE Asia and Europe.

Both A350 and 787 schedules are slated to start in September this year, with the A350 flying to Paris, and the 787 to London. Initial frequencies will rise from four flights to 5x- or 6x-weekly between the European destinations and Hanoi or Ho Chi Minh City.

The new corporate identity will extend beyond new aircraft and crew liveries to new-look departure lounges, ticket offices, check-in counters, labeling and signage.

News Item A-2: See photo - - "VIE-2015-07 - 787-9 Near Washington DC.jpg"

(VIE)’s 1st Boeing 787-9 soars near the Washington Monument on its way to Ronald Reagan Washington National Airport at an event that included H E Nguyen Phu Trong, General Secretary of the Communist Party of Vietnam. At the event, the 2 companies also signed a memorandum of collaboration toward the goal of (VIE)'s fleet replacement and expansion. Boeing (TBC) has offered (VIE) 8 787-10 Dreamliners and 8 777-8Xs, which (VIE) acknowledged. (TBC) and (VIE) will work together and report to government authorities before coming to official cooperation agreements in the future.

News Item A-3: Airbus (EDS) has been selected by Vietnam Airlines (VIE) to provide Flight Hour Services (FHS) for its new fleet of 14 A350-900s on order. With this contract, (VIE) becomes the 1st A350 XWB operator to select Airbus (FHS). The agreement, which will run for 12 years, provides an extensive scope including A350 line replaceable units (LRU)s, guaranteed spare parts availability through a pool access service at (VIE)’s main base and selected outstations.

News Item A-4: "Singapore’s Changi Airport Signs Up 5 New Airlines for T4" by (ATW) Jeremy Torr, July 13, 2015.

Singapore’s Changi Airport will have 5 new tenants for its new S$1 billion/$750 million Terminal 4, due to open in the 2nd half of 2017.

The new tenants include three AirAsia subsidiaries (AirAsia Berhad (Malaysia) (ASW), Indonesia AirAsia (AWR) and Thai AirAsia (THA)) as well as flag carriers Korean Air (KAL) and Vietnam Airlines (VIE). They will join lead tenant Cathay Pacific Airways (CAT) as Terminal 4 launch airline customers.

The new terminal is billed as a replacement for the airport’s previous Budget Terminal, but also as an extension of the airport’s full-service provision. It will boost Changi’s overall passenger capacity from 66 million passengers a year to around 75 million in its initial phases, and will eventually have a maximum planned capacity of 16 million passengers.

Changi Airport Group (CAG) said a mix of tenants will occupy the new terminal’s four wide body and 17 narrow body gates; more announcements are on the way.

The terminal will feature new, high-tech processing technology for travelers. This will include a complete self-service check-in facility including automated registration and bag drop, facial recognition immigration clearance, and scanned-in self-service boarding processes.

(CAG) management says the new technologies will eliminate the need for manual verification and lead to shorter queuing times and increased flexibility through usage of the self-service kiosks. “Passengers can expect to pass through the various touch points more smoothly and stress-free, giving them more time to enjoy the facilities,” (CAG) Executive VP Air Hub & Development Yam Kum Weng said.

(CAG) speculates the new technologies will also boost long-term growth, which has slowed at Changi over recent quarters. The new systems are billed to bring both time saving and lower operating costs for tenant airlines, with some -40% less processing costs compared to other terminal operations.

However, the lack of direct SkyTrain access to the other Changi terminals has seen local low-cost carriers Scoot (SCT) and Tigerair (TGR) hold back on support for the new facility. Transit passengers will need to take buses from T4 to other departure points, something Scoot (SCT) (CEO) Campbell Wilson was highly critical of last year.

August 2015: News Item A-1: Rolls-Royce (RRC) has won a $580-million TotalCare long-term contract with Vietnam Airlines (VIE) for (Trent XWB)s on 14 Airbus A350-941-XWBs.

Separately, (RRC) has appointed the (HAECO) Group as its 1st authorized on-wing services provider in the Asia Pacific region. On-wing services are jointly provided by (HAECO) Hong Kong and Hong Kong Aero Engine Services Limited, and currently cover (RB211)s, (Trent 500s), (Trent 700s) and (Trent 800s), as well as the (IAE) (V2500).

News Item A-2: (PIA) Pakistan International Airlines will dry lease 3 777-200ERs from Dutch firm AerCap (DEA) following a tender floated in May of this year. According to evaluation results, the airplanes are Vietnam Airlines ((IATA) Code: VN, based at Hanoi) (VIE) airframes (32717, 32716, and 28688), all of which will be used to replace (PIA)'s outgoing 747-300 fleet.

News Item A-3: "Vietnam Airlines (VIE) Drops A380 4 Airplane Order" by (ATW) Jeremy Torr, August 27, 2015.

The Vietnamese government has dropped all plans to confirm options on the four Airbus (EDS) A380s it signed up for in 2009.

Vietnamese flag carrier, (VIE) cited "increased pressure of arranging capital for aircraft purchases" as a key factor, along with the slow progress on the planned Long Thanh International Airport at Ho Chi Minh City (the only Vietnamese airport with enough capacity to handle A380 aircraft).

(VIE) also has reportedly scaled down its original plan to boost fleet size to 150 aircraft over the next 5 years, and will instead grow to just >120 aircraft.

(VIE) (which is scheduled to take delivery of 8 787-9s and 10 Airbus A350 XWBs up to 2019) said that "the world economic situation is more difficult," and that "fierce competition in the aviation market place" were both added reasons for opting out of the A380 deal.

(VIE) has just <90 working aircraft at present.

This latest cancellation comes as an added blow for Airbus (EDS)'s A380 program, which has seen several cancellations in Asia, including a significant 6-aircraft order from bankrupt low cost carrier (LCC), Skymark Airlines (SKM).

November 2015: Vietnam Airlines has added a new Ho Chi Minh to London service to its existing 2 direct flights on the route, from the end of October. The extra service uses (VIE), the Vietnamese flag carrier’s new Boeing 787-9 airplane on 3x-weekly service from Tan Son Nhat International Airport, Ho Chi Minh City, to London Heathrow Airport (LHR), UK. The new schedule gives (VIE) 6 direct flights a week from Vietnam to (LHR), using 787s. It had already operated a 3x-weekly, Noi Bai International Airport, Hanoi to (LHR) services and is the only airline offering direct flights between the UK and Vietnam.

It also plans to further increase frequency in summer 2016 to 7x-weekly flights from both cities as it takes delivery of more Boeing 787s; it has an order for 19 airplanes due to be fulfilled by 2019.

“Our vision, and that of the government of Vietnam, is for (VIE) to become the major carrier in SE Asia,” (VIE) (CEO) Pham Ngoc Minh said.

(VIE) swapped its UK routes from London Gatwick to (LHR) T4 earlier this year, partly to take advantage of new slot allocations at Heathrow.

The new schedule will offer a 3-class cabin seating 305 passengers, and adds to the total of 29 international destinations Vietnam Airlines services.

January 2016: News Item A-1: "(ANA) to Take 8.8% stake in Vietnam Airlines (VIE)" by (ATW) Victoria Moores, January 12, 2016.

Star (SAL) Alliance-linked (ANA) Holdings has signed a memorandum of understanding to acquire an 8.8% strategic investment in SkyTeam (STM) Alliance member, (VIE), valued at VND2.4 billion/$107 million.

The planned “business and capital partnership” between the two airlines, which remains subject to finalization and regulatory approvals, was announced to the London Stock Exchange on January 12.
“Asia is a key growth market for the (ANA) Group as it expands its international footprint and (VIE) makes the ideal partner for us,” (ANA) Holdings President & (CEO) Shinya Katanozaka said.

(ANA) operates 14x-weekly flights on 2 routes between Japan and Vietnam, while Vietnam Airlines (VIE) operates 66x-weekly flights on 10 routes between the 2 countries. Working together, the 2 airlines plan to tap increasing demand, particularly in Cambodia, Laos, Myanmar, and Vietnam.

“The cooperation with the (ANA) Group will help (VIE) acquire new management technologies, expand the market, improve service quality, increase competitiveness on international markets. I strongly believe this comprehensive cooperation will enhance the value, brand and image of (VIE),” Vietnam Airlines (VIE) Chairman, Pham Viet Thanh said.

An (ANA) Group representative will take a seat on (VIE)’s board seat and the Japanese carrier will advise its new partner on operational and management issues.

Vietnam Airlines (VIE) operates a fleet of 87 Airbus A321s, A330s, A350-900s, Boeing 787s and 777s across its network of 29 international and 21 domestic destinations. In 2015, it generated VND69.3 trillion in revenue and employed 6,900 staff.

The (ANA) Group is parent to full service airline (ANA) and low-cost carrier Vanilla Air (VNL). It is larger than (VIE), operating a fleet of 246 aircraft across 81 international and 112 domestic routes. In 2014, (ANA)’s revenues totaled ¥1,713.4 billion and it employed 33,000 staff at group level.

February 2016: INCDT: Vietnam Airlines (VIE) A350-900 (TRENT XWB) (VN-A887) performing flight VN-227 from Hanoi to Ho Chi Minh City (Vietnam) with 137 passengers and 7 crew, was enroute about 40 minutes into the flight when the cabin pressure was lost, the passenger oxygen masks were automatically released, and the crew initiated an emergency descent. The A350-900 returned to Hanoi for a safe landing.

A replacement A350-900 (registration VN-A888) reached Ho Chi Minh City with a delay of 3.45 hours.

(VIE) confirmed the aircraft suffered the loss of cabin pressure, the passenger oxygen masks automatically deployed. All passengers disembarked unharmed, a flight attendant (CA), however, received minor injuries in the encounter.

May 2016: "Vietnam Airlines to Ramp Up Domestic, Regional Services"
by (ATW) Jeremy Torr, May 13, 2016.

Vietnam Airlines (VIE) and part-owned subsidiary, Cambodia Angkor Air (AOL) are looking to “substantially increase” domestic services in both countries, as well as expand regional services to nearby Asian countries.

(VIE) spokesperson, Le Thanh Dzung said (VIE)’s new 6x-weekly Boeing 787 service from Heathrow to Hanoi and Ho Chi Minh City will be expanded to a daily schedule from July, and would help “provide an [expanded] network to and within the region.”

Vietnam Airlines (VIE) is also planning to add up to 20% extra capacity on existing routes such as its 22x-daily Hanoi to Ho Chi Minh City service, 15x-daily, Ho Chi Minh City to Da Nang service and 12x-daily, Hanoi to Da Nang service. Other tourist destinations such as Nha Trang and Phu Quoc will also see increased frequencies over the coming months.

(VIE) also plans to expand its Airbus A321 regional international services with a rise from 5x-weekly to 7x-weekly to Myanmar capital Yangon, and replace ATR 72 turboprops on the Da Nang to Siem Reap, Cambodia and Hanoi to Luang Prabang, Laos with A321 aircraft to boost capacity.

Further expanding its local capability, Cambodia Angkor Air (AOL) is to introduce a new 6x-weekly service from June 2016 to Sihanoukville, Cambodia from Ho Chi Minh City, using ATR 72s. It also plans to introduce a new 3x-weekly, ATR 72 schedule from Siem Reap to Da Nang.

Vietnam Airline (VIE) is expected to launch a new Siem Reap to Hanoi service in late 2016. “Hanoi and Ho Chi Minh City are increasingly being viewed as the natural gateways to Indochina, challenging the likes of Bangkok and Singapore,” (VIE) said, noting that arrivals to Vietnam had risen to nearly 8 million international visitors in 2015, a surge of up to +15% in some months.

June 2016: "ANA Takes $109 million Stake in Vietnam Airlines" by (ATW) Jeremy Torr, June 2016.

(ANA) has finalized its agreement to take an 8.8% stake in Vietnamese flag carrier Vietnam Airlines (VIE), worth VND2.43 trillion/$109 million. (ANA) will also take 1 seat on the board of (VIE).

The agreement, to be concluded in July 2016, follows an (MOU) signed earlier in 2016 that outlined an increase in code share and other joint operational issues between the two carriers.

(ANA) said the agreement was part of its mid-term business strategy to strategically expand and invest in high-growth areas, particularly in Asian airline-related businesses.

(ANA) (CEO) Shinya Katanozaka said the move would help “contribute to the further promotion of economic, cultural and personal ties between Japan and other Asian states” as well as boosting the potential growth for both airlines.

The two airlines will begin code sharing on selected flights from October 2016, and will at the same time launch a new joint frequent flyer program for travelers on both carriers’ aircraft.

(ANA) said the code share facility would include 30 domestic routes within Japan and Vietnam as well as 10 international routes between the 2 countries.

The carriers will also collaborate on ground operations such as passenger check-in, cargo loading, ground handling, catering, and Maintenance Repair & Overhaul (MRO) in both Vietnam and Japan.

(VIE) (CEO) Pham Ngoc Minh said the agreement was a key move in Vietnam Airlines (VIE)’s drive to improve and increase competitiveness on international markets. He said the agreement would also, through exchange of industry know-how, “help expand the market, improve service quality and achieve higher efficiency.”

(VIE) currently operates an 89-aircraft fleet to 29 international and 21 domestic destinations. (ANA) has some 250 aircraft flying to 90 destinations and carries almost 47 million passengers a year.

September 2016: Vietnam Airlines (VIE) has signed a memorandum of understanding (MOU) for +10 more Airbus A350-900s, which it plans to use on nonstop flights to the USA. (VIE) already has four aircraft in service, with another +10 on firm order.

“The additional +10 aircraft covered by this (MOU) will enable (VIE) to operate nonstop to the USA West Coast, carrying 305 passengers in a three-class premium layout,” Airbus (EDS) said, announcing the agreement on September 6.

The Rolls-Royce (RRC) (Trent XWB)-powered aircraft will initially be used to open a new service between Ho Chi Minh City and Los Angeles.

Vietnam Airlines (VIE) was the 2nd airline to receive the A350, which it flies to Paris (France), Incheon (Korea), Shanghai (China) and on domestic routes between Hanoi and Ho Chi Minh City. (VIE) President & (CEO) Duong Tri Thanh said (VIE) has had an “excellent experience” since the A350 entered service last year.

(VIE) operates 94 routes, spanning 21 domestic and 29 international destinations, using a fleet of A321s, A330s, Boeing 787s and 777s.

Airbus (EDS) has 810 firm orders for the A350 from 43 customers. 8 carriers already operate the twinjet, with a total of 36 aircraft in service.

January 2017: Vietnam Airlines (VIE) and its subsidiaries earned a consolidated pre-tax profit of +$113.7 million in 2016, which represents a +140% increase on the previous year, according to the company’s initial estimates.

(VIE), the Hanoi-based carrier’s core operation is estimated to have contributed $72.7 million in pre-tax profit, >5x- the profit from 2015. (VIE) is majority owner of Vietnam-based low-cost carrier (LCC) Jetstar Pacific (PAH) and part-owner of Cambodia’s Angkor Air. Regional carrier (VASCO) is a (VIE) subsidiary.

The (VIE) group recorded $3.45 billion in consolidated revenue for 2016, up +10% from 2015. (VIE) contributed $2.7 billion of the total. (VIE) increased its passenger total by 18.7%, and its cargo volume was +10% ahead of its plan.

(VIE)’s profit projection comes in the same week as its January 3 listing on the Hanoi Stock Exchange. (VIE) is still 86% owned by the government, and strategic investor All Nippon Airways (ANA) holds a share of almost 9%. Some shares were made available to the public and employees in a previous initial public offering (IPO).

May 2017: 787-9 (39290, VN-A871), ex-(N1015X) delivery.

October 2017: "Air France Continues Long-haul Drive with Vietnam Airlines Joint Venture" by Reuters, October 10, 2017.

Air France (AFA) signed a new joint venture (JV) deal with Vietnam Airlines (VIE) and said it was in advanced talks with India's Jet Airways (JPL) over a partnership as part of efforts to boost its long-haul network.

The (JV) with (VIE), due to start from November depending on approval from authorities, builds on code shares that have been in place since 2010 and will see the 2 airlines coordinating their flight schedules to offer customers better connecting flights.

(AFA) is also looking at working more closely with Indian carrier Jet Airways (JPL), with which it has had a code share since 2016. "We are in advanced talks with (JPL) to see how we can strengthen our co-operation," (AFA) (CEO) Franck Terner told "Reuters."

Parent company (AFA) - (KLM) is currently seeking ways to boost its position on long-haul markets and compete against Gulf carriers.

It is launching a new budget brand, "Joon," to fly short and long-haul routes and in July rejigged its North Atlantic alliance in a 3 way deal with Delta (DAL) and Virgin Atlantic (VAA).

As part of that shake-up, (DAL) and China Eastern (CEA) have each taken a 10% stake apiece in the Franco-Dutch airline. "There is still pressure on prices on routes heading east," Terner said. "The joint venture with Vietnam Airlines (VIE) will help us to strengthen our position and better mitigate this pressure on prices."

Terner said a similar stake deal to that signed with (DAL) and (CEA) was not planned with (VIE) or (JPL).

(VIE) said it hoped the (AFA) (JV) would lead to similar partnerships with other airlines in the Skyteam (STM) Alliance and with Japan's (ANA) (9202.T), which bought an 8.8% stake in the carrier last year.

"This is a model that when established will help (VIE) soon have similar contracts in the Asia region, hopefully including the USA as well," (VIE)'s (CEO) Duong Tri Thanh told reporters.

(AFA) and (VIE) did not provide further details on the revenue sharing arrangements.

Fleet:
(definitions)

Click below for photos:
VIE-767-352ER
VIE-777 - NEW LIVERY 2015-02.jpg
VIE-777-200ER
VIE-777-200ER ILF LSD
VIE-777-200ER-2014-03
VIE-777-2Q8ER
VIE-777-2Q8ER 2
VIE-787 - 2015-07.jpg
VIE-787 871-2017-07.jpg
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VIE-787-9 - 2015-05-B.jpg
VIE-787-9 - 2015-08-A.jpg
VIE-787-9 - 2015-08-B.jpg
VIE-A320 - 2014-09
VIE-A321
VIE-A321-131
VIE-A330-300
VIE-A350 XWB - 1st Flight-2015-06.jpg
VIE-A350-900 - 2015-02
VIE-A350-900 - 2015-08.jpg
VIE-A350-900 - 2017-01.jpg
VIE-A350-XWB ROLL OUT-2015-03.jpg
VIE-ATR72
VIE-F 70

October 2017:

0 757-200PF, (UPS) WET-LSD 2001-03. RTND.

2 767-324ER (CF6-80C2) (568-27392, /95 VN-A762; 571-27393, /95 VN-A764; 593-27568, /95 VN-A765), (GUI) LSD. (ETOPS) EQ'PD. 27392 RTND 2004-11. 21C, 196Y.

0 767-328ER (CF6-80C2B6) (559-27427, S7-AAB), (RBA) WET-LSD 2000-09, RTND 2002-06; 21C, 196Y.

0 767-33AER (780-27477, /00 OO-CTA), EX-(CBD), (AWW) LSD 2002-07. RTND 2004-06, LST (BEJ). 21C, 196Y.

0 767-33AER (PW4056) (591-27909, /95 VN-A766), EX-(QAN), (AWW) LSD 2002-10. RTND 2004-08, LST (BEJ). 21C, 196Y.

0 767-33AER (CF6-80C2B6F) (545-27310, /94 VN-A768), EX-(SBL), (AWW) LSD 2000-12 & 2003-05. RTND. 21C, 196Y.

0 767-352ER (PW4062) (575-26261, /95 VN-A763), EX-(LAN), (ILF) 3 YR LSD 2002-10. 21C, 196Y.

0 767-352ER (PW4062) (583-26262, /95 VN-A769), EX-(EIY), (ILF) 20 MTH LSD 2001-02; RTND, LST (ELA) 2006-11. 24C, 238Y.

0 767-383ER (24848), EX-(HOL), (BBB) LSD 2005-03. RTND 2005-06.

4 777-2Q8ER (GE90-94B) (436-28688, /03 VN-A141, 2003-04; 443-32701, /03 VN-A142, 2003-06; 518-32716, /05 VN-A149, 2005-05; 541-32717, VN-A150, 2005-12), 8 YRS (ILF) LSD. 28688; 32716; 32717; TO (DEA) AND LSD TO (PIA) 2015-08. 25C, 282Y.

2 777-2Q8ER (GE90-94B) (135-27607, /05 VN-A147, 2005-02; 164-27608, /05 VN-A151, 2005-10), EX-(ARO), (ILF) LSD. 25C, 282Y.

5 777-26KER (PW4084D) (450-33502, /03 VN-A143, 2003-08; 453-33503, VN-A144, 2003-09; 491-33504, VN-A146 2004-09; 486-33505, VN-A145 2004-07; 518-32716, VN-A149, 2005-05). 25C, 282Y.

12 ORDERS (2015-05) 787-8 DREAMLINER, INCL 8 VIETNAM AIRCRAFT LSG LSD, 274-SEAT CABIN: 28C, 35PY, & 211Y; 311-SEAT CABIN: 28C, 283Y:

1 +3/11 ORDERS 787-9 DREAMLINER (39290, VN-A871, 2017-05), EX-(N1015X), 274-SEAT CABIN: 28C, 35PY, & 211Y; 311-SEAT CABIN: 28C, 283Y.

1 +7 ORDERS (2017-02) 787-9 DREAMLINER, (ALE) LSD.

0 A300B4-605R (CF6-80C2) (584), (RAE) LSD 2000-11. RTND. 24C, 250Y.

0 A310-322 (409, S7-RGR), RTND (RAE) 2000-07.

0 A310-324 (549), (RAE) WET-LSD 2000-06. RTND.

1 A320-211 (CFM56-5A1) (024, /88 VN-A123), WET-LST (LAO), 20C, 120Y.

7 A320-214 (CFM56-5B4) (590, /96 VN-A301; 594, /96 VN-A302; 601, /96 VN-A303 - - SEE PHOTO - - "VIE-A320 - 2014-09;" 605, /96 VN-A304; 607, /96 VN-A305; 611, /96 VN-A306; 617, /96 VN-A307; 619, /96 VN-A308; 648, /96 VN-A309; 650, /97 VN-A311), AEROSTAR LSD. 601 RTND 2012-07. 648; & 650; TO (9SA) 2014-05. 12C, 138Y.

0 A321-131 (V2530-A5) (591, /96 VN-A342; 597, /96 VN-A346), (ILF) 2 YR LSD 2001-06, EX-(ONU). 591 RTND 2004-08. 597 RTND 2004-10. 16C, 156Y.

1 ORDER A321-131 (V2533-A5) (557, /95 VN-A341, 2003-04), EX-(MCU), (AWW) 2 YR LSD. 16C, 156Y.

19 ORDERS (2012-02) A321-200 (V2500), INCL 10 ORDERED BY VIETNAM AIRCRAFT LEASING COMPANY (VALC):

6 ORDERS A321-200 (V2530-A5), 4 (ILF) 10 YR LSD & 3 (DEA) LSD. 16C, 156Y:

0 A321-211 (CFM56-5B3/P) (956, /99 VN-A343), (GEF) LSD 2004-03. RTND, LST KINGDOM HOLDING (KBA) 2006-12. 16C, 156Y.

14 A321-231 (V2533-A5) (2255, 2261; 2267, VN-A347 2004-08; 2303, VN-A348; 2480, VN-A349, 2005-05; 2974, VN-A350, 2007-01; 3005, VN-A351, 2007-01; 3013, VN-A352 2007-01; 3022, VN-A353 2007-02; 3198, VN-A354, 2007-07; 3315, VN-A356, 2007-11; 3355, VN-A357, 2008-01; 3737, VN-A359, 2008-12; 3862, VN-A360, 2009-04; 5916, VN-A608, 2013-12). 3005; WET-LST (AOL) 2009-11. 16C, 156Y.

2 A321-231 (V2533-A5) (3964, VN-A361, 2009-12; 3966, VN-A362, 2009-12; 4311, VN-A322, 2010-05), (ILF) LSD. 16C, 156Y.

2 A321-231 (V2533-A5) (4277, VN-A366, 2010-04; 4315, VN-A367), AERVENTURE LSD 2010-05. 16C, 156Y.

1 A321-231 (V2533-A5) (6810, VN-A614), EX-(D-AZAH) 2015-11. 16C, 156Y.

2 A330-223 (PW4168A) (255, /99 VN-A369; 262, /99 VN-A370), EX-(MAS), ILF 8 YR LSD 2007-03. 42C, 187Y.

2 A330-223 (PW4168A) (275, VN-A371, 2009-09 - - IN SKYTEAM (STM) ALLIANCE COLORS - - PHOTO - - "VIE-A330-2010-11;" 299, VN-A374, 2009-12). 42C, 187Y.

3 A330-223 (PW4168A) (943, VN-A376; 962, VN-A377, 2010-08; 1019, VN-A378), 2010-07. 42C, 187Y.

1 A330-223 (PW4168A) (1256, VN-A379), EX-(F-WWYO), (ALE) LSD 2011-10. 423C, 187Y.

3 +21 ORDERS A350-941-XWB (TRENT XWB) (14, VN-A886, 2015-06; VN-A887; VN-A888), 4 AERCAP (DEA) LSD. 305 seats: 29C; 45PY; 231Y; & 29C; 36PY; 240Y:

0 ORDERS A380, CANCELED ORDER FOR 4 - - 2015-08.

7 ATR 72-202 (PW124B) (509, VN-B242; 519, /98 VN-B248; 523, /98 VN-B246), (AUK) LSD 2000-09, 509 RTND 2002-07. + 2 ORDERS. TO REPLACE TU-134'S. 1 TO (ALB) 1999-04. 66Y.

6 ATR 72-202 (PW124B) (215, /91 VN-B202; 341, /92 VN-B204; 419, /94 VN-B206; 416, /94 VN-B208; 307, /92 F-GKOC; 316, /93 F-GHOB), 66Y.

1 ATR 72-202 (PW124B) (523, /98 VN-B246), ATR LSD 2000-10. 66Y.

4 ATR 72-212A (PW127F) (678, /01 VN-B210; 685, /02 VN-B212; 688, /02 VN-B214; 877, VN-B218, 2009-06). 688; RF CAMBODIA ANGKOR AIR 2010-07. 66Y.

9 +7 ORDERS ATR 72-212A (ATR72-500) (PW127F) (886, VN-B219, 2009-10, 890, VN-B220, 2009-10; 892, VN-B221, 2009-11; 896, VN-B223, 2009-12; 899, VN-B227, 2010-01; 912, VN-A233, 2010-04; 914, VN-B236, 2010-06; 925, VN-B237, 2010-09; 939, VN-B240, 2011-01), 899 WET-LST CAMBODIA ANGKOR AIR (AOL) 2010-01. 906; TO (AOL) 2010-03. 70Y.

2 F 70 (TAY 620-15) (11580, /96 VN-A502; 11585, /96 VN-A504), VIP, 79Y.

20 ORDERS MRJ90, 70/90 PAX:

1 AN-24.

1 AN-30F.

1 IL-18D (AI-20M) (189011304, /69 VN-B198), 100Y.

0 TU-134A (D-30-II) (63260, /80 VN-A132), (GROUNDED FOLLOWING CRASH 1997-09), REPLACED BY ATR72'S. 72Y.

0 TU-134B (D-30-III) (66250, /84 VN-A118), 2 GROUNDED. 72Y.

1 YAK-40 (AI-25) (9631748, /76 VN-A446), 32Y.

Management:
(definitions)

PHAM VIET THANH, CHAIRMAN.

DUONG TRI THANH, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO).

NGUYEN XUAN HIEN, DIRECTOR GENERAL, PRESIDENT (2000-06).

PHAM NGOC MINH, DEPUTY DIRECTOR GENERAL (HO CHI MINH CITY) & VP COMMERCIAL.

TRINH NGOC THANH, EXECUTIVE VP COMMERCIAL.

LUONG THE PHUC, VP FLIGHT OPERATIONS.

VU KHAC NGOC, DIRECTOR FLIGHT OPERATIONS.

TRAN VAN DONG, DIRECTOR TECHNICAL (HDQEPVN) (1999-11).

TRAN VAN MAI, DIRECTOR MAINTENANCE (HCMC) BASE (2002-01).

LE VIET DONG, DIRECTOR QUALITY ASSURANCE (QA) (1999-11).

HOANG VAN MAO, MAINTENANCE CENTER A75 DIRECTOR.

LE CANH TIEN, DIRECTOR STATISTICS & INFORMATION TECHNOLOGY (IT).

TO DINH DUNG, DIRECTOR TECHNOLOGY DEVELOPMENT.

HOANG MANH TUAN, DIRECTOR CARGO MARKETING & SALES.

PHAN DUY QUANG, DIRECTOR CORPORATE AFFAIRS.

VO TA SUU, DIRECTOR FINANCE & ACCOUNTING.

NGUYEN VAN BA, DIRECTOR FLIGHT SAFETY & SECURITY.

TRUONG VAN HA, DIRECTOR TRAINING.

TRINH NGOC THANH, DIRECTOR MARKETING PLANNING.

TRINH HONG QUANG, DIRECTOR PASSENGER MARKETING.

MS NGUYEN THI THANH VAN, DIRECTOR PLANNING & INVESTMENT.

DUONG MANH CUONG, DIRECTOR MARKETING SERVICES.

PHAN XUAN DUC, DIRECTOR FLIGHT CREW.

MS NGUYEN HUY TRANG, DIRECTOR CABIN CREW.

NGUYEN HUY TRANG, DIRECTOR PERSONNEL.

TRAN HUU PHUC, DIRECTOR SUPPLY & MATERIALS MANAGEMENT.

NGUYEN DUC QUANG, ENGINEERING MANAGER (HANOI).

 
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