Vietnam Airlines JSC. earns a record profit of nearly 114 million USD (2,500 billion VND)

Published on : Friday, January 6, 2017

Vietnam-AirlinesVietnam Airlines has successfully accomplished significant goals of the year in 2016. The achievements can be attributed to the efforts of Vietnam Airlines in taking advantages of opportunities to grow in the domestic market as well as in implementing flexible solutions to deal with challenges in the world’s market, such as: overloaded infrastructure, exchange rates fluctuations, and political instability in many countries around the world. Some of the achievements include:
Record profit

 
Total consolidated revenue of Vietnam Airlines and its subsidiaries is estimated at over 3.45 billion USD (76,000 billion VND), up 10% year-on-year. Total consolidated profit before taxes is estimated at nearly 113.7 million USD (2,500 billlion VND), up 140% year-on-year and surpassed the yearly target by 7%. In which, Vietnam Airlines estimated its total revenue to be at nearly 2.68 billion USD (59,100 billion VND) and  72.7 million USD (1,600 billion VND) total profit before taxes, up 5.6 times year-on-year. The company contributed 222.7 million USD (4,900 billion VND) to the state’s budget, a year-on-year increase of 11%.

 
Growth in transport volume

 
In 2016, Vietnam Airlines safely operated over 133 thousand flights, serving about 20.6 million passengers, an increase of 18.7% compared to the same period last year; carrying over 264 thousand tons of cargo, surpass 10% of the year’s plan.

 
Mobilizing resources, extending flight routes, diversifying products, leading the market
By arranging and utilizing resources among carriers such as Jetstar Pacific and VASCO, Vietnam Airlines has established an efficient flight network to offer various products and services, effectively meeting market’s demands. Vietnam Airlines maintains the model of a traditional carrier, focusing to offer 4-star services on key domestic and international routes in Southeast Asia, Northeast Asia, Europe, and Australia. Jetstar Pacific develops services on domestic routes with competitive prices and short-leg international routes. VASCO focuses on services on local airports which cannot receive large aircrafts and provides general aviation services. According to the latest data of CAPA, on the key and largest domestic route between Hanoi and Ho Chi Minh city, the market shares of Vietnam Airlines and Jetstar Pacific are 63%, in which Vietnam Airlines takes up to 45% of the market shares and leads the market in seat offers. The overall domestic market has reached over 60%.

 
Achievements in equitization

 
Last year, the final tasks in the equitization process were accomplished. Vietnam Airlines has signed cooperation contracts with foreign investors – the Japanese ANA Holdings Inc. The participation of Japanese partners in operation activities will be an advantage for Vietnam Airlines to improve its management capacity, product development, flight network extension and enhance competitiveness, realizing the long-term plan for sustainable development in the future.

 
Besides, Vietnam Airlines has also completed the capital handover between its state-owned enterprise and the joint-stock company. The Hanoi Stock Exchange has approved to register the airliner’s shares for trading on the UPCoM exchange. HVN shares will be traded officially on the UPCoM exchange on January 3rd, 2017, the first trading session of the new year 2017.

 
Upgrading services

 
Vietnam Airlines has achieved the 4-star airline award given by Skytrax. Thanks to the airline’s continuous efforts in upgrading and improving its services and products quality, especially those of Business class. According to surveys conducted on board, the total satisfaction scores given by customers in 2016 are on the rise, evidencing the airline’s strong commitments in improving its service quality to meet customers’ needs.

 
Successfully operating new modern technology aircraft fleet

 
In 2016, Vietnam Airlines has received and put into operation 10 Boeing 787-9 Dreamliners and 6 Airbus A350-900 XWBs. The newest air fleet generation was introduced as Vietnam Airlines committed to enhance service qualities, especially on key domestic and long-haul international routes. After this first year of operation, Vietnam Airlines was recognized as one of the most successful air carriers to operate these new generation aircraft fleet.

 
Reaching international recognition

 
2016 also marked the success of Vietnam Airlines with a series of awards recognized by some of the world’s prestigious organizations, including: being rated as one of the three most improved airlines by Skytrax; recognized as the Best Airline of the Year awarded at the Mekong Tourism Alliance Awards; awarded the Asia’s Leading  Airline Economy Class and Asia’s Leading Cultural Airline at the World Travel Awards ceremony; as well as voted as the airline with Best Business-Class Seat Design by Global Traveler China.
These results are evidence of the continuous efforts by the airline in creating groundbreaking developments, taking full advantages to develop and improve the business efficiency.

 
In 2017, Vietnam Airlines will continue to mobilize resources in ensuring full safety and security; providing good and sufficient services during the year-end’s peak season; following the plan to simplify the structure and amount of aircrafts in accordance to the approved plan; continue to maintain the 4-star service, achieving over 90% of 4 and 5-star criteria according to Skytrax’s ranking; cooperating to develop products, improve human resources and branding with Jetstar Pacific, Cambodia Angkor Air, VASCO to improve the airline’s competitiveness and meet the increasing demands of customers.

 

 

Source:- Vietnam Airlines

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