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Vietnam Airlines plans to push for organizational restructuring

Released at: 14:27, 16/07/2019

Vietnam Airlines plans to push for organizational restructuring

Photo: Vietnam Airlines

National flag carrier announces intentions in business performance report for first half.

by Ngoc Lan

Vietnam Airlines plans to push for organizational restructuring in the second half of this year, according to its business performance report for the first half, released on July 16.

The national flag carrier expects to complete its 20 narrow-body Airbus A321neo fleet, take delivery and operate the first three wide-body Boeing 787-10s out of an order of eight, and finalize its investment plan for 50 more narrow-body aircraft in the 2021-2025 period.

In the first half, the Vietnam Airlines Group (including Vietnam Airlines, Jetstar Pacific, and VASCO) reported VND51.662 trillion ($2.2 billion) in consolidated revenue, up 5.5 per cent year-on-year, and VND1.650 trillion ($70.8 million) in pre-tax consolidated profit, or 30 per cent higher than planned.

Vietnam Airlines earned VND38.328 trillion ($1.6 billion) in revenue, up 5.8 per cent year-on-year, and VND1.787 trillion ($76.6 million) in pre-tax profit, up 21.8 per cent year-on-year and 13.6 per cent higher than planned.

It safely carried over 13.9 million passengers, a 2 per cent increase year-on-year, and more than 180,000 tons of cargo, up 1.6 per cent, on 73,650 flights. Its on-time performance (OTP), averaging 90 per cent, remained among the highest globally.

Demand-responsive load factors led to significant fuel savings and higher seat utilization of 80.3 per cent. Thanks to its operational efficiency, the Vietnam Airlines Group continued to spearhead the local aviation market, carrying approximately 51 per cent of the aggregate passenger volume.

Having boosted its charter capital to more than VND14.182 trillion ($608.6 million), Vietnam Airlines had its shares (HVN) officially listed on the Ho Chi Minh Stock Exchange (HoSE) on May 7. The Group also convened an Annual General Meeting of Shareholders and paid cash dividends to shareholders.

It also finalized key business projects, such as an organizational restructuring plan for the 2021-2025 period, a fleet development plan for 2021-2025 with a vision towards 2030, and an investment policy on 50 narrow-body aircraft in the 2021-2025 period, all of which have been submitted to the State Capital Management Committee for feedback.

Vietnam Airlines has been certified as a four-star airline for the fourth consecutive year, having successfully met the rigorous rating criteria of Skytrax. Its areas rated 4.5-5 stars increased by 16 per cent against 2016, when it first received the four-star certificate. Meeting 85 per cent of the four- and five-star criteria is a stepping stone for the carrier to become Vietnam’s first five-star airline after 2020.

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