Vietnam Airlines: A 32 aircraft fleet by 2005
On June 19, Vietnam Airlines, the national flag
carrier, received the third French-built ATR
72-500 for its purchasing plan target for 2005.
The Saigon Times' Thai Thanh interviewed Mr.
Nguyen Xuan Hien, general director of
Vietnam Airlines, about its development
scheme.
The September 11 event has adversely
affected the airline industry throughout the world.
What has been done by Vietnam Airlines to
avoid the negative impact?
Prior to the event, the economic crisis stemming
from Asia had cooled the development of
global aviation. The industry
began to recover at the end of
998. But the September 11 event
dealt a major blow to the aviation
market, creating a fear among air
passengers. Cost of flights
immediately soared, especially
insurance costs.
However, the aviation industry is now expected to quickly recover. This is
particularly true with Vietnam where terrorist impact is not a big issue and
where the annual economic development rate is 7%. Aviation activities in
the region have rapidly picked back up.
You said earlier this year that Vietnam Airlines is striving for a 15%
year-on-year growth rate, and will try to retain this pace during the next
five years. What supports that claim?
We plan to transport 3.4 million passenger this year, posting a 15%
growth over last year. The rate can be retained during the next five years
before sliding back to the normal pace. However, it should be taken into
account that despite the 15% growth rate, the absolute number of
passengers on Vietnam Airlines remains modest. If all counted-from the
3.4 million passengers carried by Vietnam Airlines, the 500,000
passengers flying Pacific Airlines [of which Vietnam Airlines is a
shareholder], plus the passengers in aviation pacts with other airlines-the
number of passengers coming to and from Vietnam is only between 6
and 6.5 million. If a 15% growth rate is sustained, by 2005 Vietnam Airlines
alone will have been able to carry 6 million, thus ensuring that the number
of passengers coming to and from Vietnam will be 9 million.
This figure
will meet the demand for external economic relations development, and
regional and local economic development inside Vietnam, as well as the
development of the tourism industry.
Will Vietnam Airlines be able to meet that target with its currently fleet?
To achieve this goal, we have to make investment and development
plans a reality, mainly by purchasing new aircraft. The three new
short-range ATR 72s, plus the two Fokkers will put the Vietnam
Airlines-owned short-range fleet at 11. This fleet is ample to connect
flights to local airports such as Dien Bien, Na San, airports in the Central
Highlands and islands, and those with a short runway but attracting quite
a few passengers such as Nha Trang.
In addition, we've planned to develop our medium-range fleet. Currently,
we operate 12 leased Airbus A320s and 321s. In the third quarter of this
year, Vietnam Airlines will sign contracts to buy five A321s to increase the
number of the medium-range fleet to between 15 and 17 airplanes.
We're also operating five Boeing 767s that are medium-range jetliners
capable of flying longer routes and accommodating more passengers.
Vietnam Airlines' 767 fleet will receive two more airplanes in the near
future.
The comprehensive plan to develop Vietnam Airlines' fleet also
encompasses the purchase of four Boeing 777-300IRs from now to 2005.
Will a larger aircraft fleet require a wider flight network?
We will focus on three areas-domestic and sub-regional; medium-range;
and long-range. ATR 72, Fokker and A320 airplanes will be used for
domestic and sub-regional flights. In the future a second trans-Indochina
route linking the three ancient capitals-Luang Prabang, Siem Reap and
Hue-may be added. Medium-range aircraft will be used for flights to
destinations in the region.
Recently, we've boosted flights to China.
Vietnam Airlines has had flights to Guangzhou, Kunming and Beijing. A
flight to Shanghai can be opened late this year or early next year.
We've had direct flights to Osaka and Tokyo from Tan Son Nhat. On
June 29, the Hanoi-Tokyo flight will be inaugurated. And I expect more
flights to Japan. Currently, several locations in southern Japan have
chartered our aircraft for irregular flights to Vietnam.
Flight frequencies to Bangkok and Seoul will also be increased. Next
year, flights to Jakarta and Eastern India via Singapore or Kuala Lumpur
may be considered.
Flights to Russia will resume this July. Once this market becomes stable,
we'll open flights from Moscow to Berlin, the Hanoi-Moscow-Berlin route
and the HCM City-Moscow-Berlin route. By the middle of next year when
we receive Boeing 777s, we will fly directly from Hanoi to Paris without a
stopover in Dubai as it is the case currently with Boeing 767s.
Even if a Vietnam-U.S. aviation pact cannot be reached, we will have to
prepare. By 2005-2006, there should be flights to U.S. west coast cities
where large Vietnamese communities live.
The above network can satisfy the development pace as discussed
previously.
You've just mentioned the development of the domestic network. Given
the existing capacity of domestic airports, will it be hard to increase flight
frequencies?
At present, Vietnam has only five domestic airports capable of receiving
Airbus A320s or bigger jetliners. They are Noi Bai, Tan Son Nhat,
Danang, Cat Bi (Haiphong) and Phu Bai (Hue). Other airports must be
upgraded to accommodate those big aircraft. To meet the domestic
aviation development plan, by 2005, all the capable airports not yet
operational will have to receive flights, and operational airports must
receive at least one flight per day.
How will Vietnam Airlines find the
funding to fulfill these ambitious
plans?
The Government has endorsed
our aircraft fleet expansion plan.
The funding will include income
from Vietnam Airlines, and
preferential government loans
through the Development and
Investment Supporting Fund. The
rest can be obtained from commercial loans offered by domestic and
foreign banks, especially export credits from the countries selling aircraft.
By Thai Thanh - The Saigon Times Weekly - June 29, 2002.
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