Vietnam's flag carrier Vietnam Airlines has produced impressive business results following its strategic co-operation with Japanese airline group ANA Holdings.

Pham Ngoc Minh, chairman of Vietnam Airlines, told last week’s Nikkei-led forum on Vietnam’s growth outlook in Hanoi, “I am glad to announce that choosing ANA Holdings as a strategic partner was one of the most important decisions in the development of Vietnam Airlines.”

“After transforming into a joint stock company, Vietnam Airlines’ business activities have achieved satisfactory results in all fields,” Minh stressed.

Specifically, Vietnam Airlines has successfully put two new-generation aircrafts (Boeing 787-9 and Airbus A350) into operation. The airline's services has been qualified at four stars, while in the year’s first nine months, pre-tax profit exceeded 74% of the initial target.

The firm’s chartered capital has reached VND12.275 trillion (US$558 million), up 16% against the time before the firm launched its IPO.

“This has helped Vietnam Airlines to increase its financial capability and achieve reasonable financial balance to maintain its high growth rate in the next period of development,” Minh said.

The strategic partnership with ANA Holdings begun in July 2016 when the Japanese company successfully acquired an 8.77% stake in the Vietnamese carrier, became its biggest shareholder.

Besides signing a share subscription agreement, ANA Holdings also committed to accompany Vietnam Airlines in its development by signing a technical support agreement, pledging to support Vietnam Airlines in business administration, marketing and commerce, flight operation, customer service, IT, aircraft maintenance, and cabin crew training.

The two firms also inked agreements on commercial co-operation to co-ordinate and utilise the two airlines’ flight networks and enhance competitiveness in both international and domestic markets to maximise benefits for the two airlines’ customers.

Currently, Vietnam Airlines and ANA Holding are boosting codeshare co-operation on ten routes between Vietnam and Japan, 11 domestic routes in Japan, four domestic routes in Vietnam, and two flights between Vietnam and Cambodia.

“With the codeshare flights, the two airlines are able to connect each other’s flight networks and increase market penetration in Vietnam and Japan, as well as other markets without launching new routes,” Minh said.

VIR