The Ministry has approved a restructuring scheme for the aviation sector with a focus on strongly expanding the number of aircraft operated by Vietnamese airlines between now and 2020.

Representatives of VietJetAir and VNPT sign a strategic partnership agreement in Hanoi last week - Photo: VJA

Vietnam Airlines, VietJetAir, Jetstar Pacific and Vietnam Air Service Co. (Vasco) operated a total of 145 airplanes at the end of last year, according to the Civil Aviation Authority of Vietnam (CAAV). The number would rise to 190-210 aircraft in 2020 as envisioned in the plan.

Vietnam Airlines now has more than 82 aircraft of different types and plans to expand its fleet to around 100 this year and 140-150 by 2020. The fleet will consist of many modern aircraft, including Boeing B777s and B787-9s, and Airbus A330s and A350s.

The national flag carrier plans to spend VND63.3 trillion on aircraft purchases by 2018. It aims for a market share of 39.9% for international guests and 49.9% for domestic passengers in 2018.

VietJetAir currently operates 24 aircraft on domestic and international flights. The second biggest carrier in the country has started to take delivery of 100 aircraft it ordered to buy and lease from European plane maker Airbus and partners.

Jetstar Pacific is investing heavily in its aircraft expansion and plans to get three to four new planes annually in the coming years.

In the restructuring scheme, the ministry also wants a bigger share of air transport in the country, with 3.23% for passenger transport and 0.04% for cargo transport on the home market. The targeted share for passengers on international flights to and from Vietnam will be 45.9% in 2020.  

The ministry hopes local airlines will operate daily flights connecting all more than 20 domestic airports in the next five years and improve their performance to reduce flight delays and cancellations. Local low-cost carriers are expected to compete on par with regional counterparts in terms of service quality.

The scheme contains solutions to realize the targets, including fast restructuring and equitilization of enterprises in the sector, increasing the market share of low-cost carriers, cutting operation costs and improving the performance of companies in this sector.

VietJetAir, VNPT strike strategic deal

State-owned Vietnam Posts and Telecommunications Group (VNPT) and VietJet Aviation Joint Stock Co. (VietJetAir) have clinched a strategic partnership agreement on air transport and telecoms services.

Under the deal, the no-frills carrier will use VNPT’s network to sell air-tickets and send SMS messages for its promotional programs and deploy telecoms services on its flights.

Employees of VNPT will have priority access to preferential service packages of the airline. The group and the carrier will jointly launch VNPT-VietJetAir promotional programs for customers of the two sides.  

Pham Duc Long, general director of VNPT, said the partnership would enable both sides to provide more services for their guests. Customers can buy air-tickets of VietJetAir via the group’s transaction points and call centers, among others.

Nguyen Thanh Ha, chairwoman of VietJetAir, said the deal would help the carrier diversify channels for fare purchases and services.

VietJetAir has transported more than 10 million passengers since it took to the skies in December 2011. The airline now conducts around 150 daily flights on 30 domestic and international routes.

Jetstar Pacific posts January-April profit of VND100 billion

Jetstar Pacific Airlines has estimated its profit in the first four months of this year at VND100 billion (some US$4.59 million), local news site VnExpress reports.

Le Hong Ha, chief executive officer of Jetstar Pacific, told reporters last week that the low-cost carrier was profitable in the period thanks to low jet fuel prices on global markets and strong demand for air travel on the domestic market.

In the first five months of this year, the third largest airline in Vietnam after Vietnam Airlines and VietJetAir has launched six domestic and international air routes and expanded its aircraft fleet to meet the demand.

The carrier started to fly between HCMC and Tuy Hoa in the first quarter of this year and HCMC and Chu Lai in the central province of Quang Nam last week using its Airbus A320 aircraft.

Jetstar pacific’s flight punctuality ratio was 81% in the first four months of this year and 82% in the month to May 20.

Ha said the airline would continue to sell everyday low fares and cooperate with national flag carrier Vietnam Airlines to better serve passengers.

Jetstar Pacific looks to take delivery of one aircraft later this month to bring the total number to 12. As scheduled, the carrier will get three to four airplanes a year in the coming years for its expansion plan.

On the occasion of its seventh birthday, Jetstar will run a promotion program allowing customers to buy one ticket and get one free from June 23 to 26.

SGT