Vietnam Airlines carries more passengers in 2006
HANOI - National flag carrier Vietnam Airlines said that it transported over 6.8 million passengers in 2006, nearly 1 million more than the previous year, and 106,600 tonnes of cargo.
The airline recorded a seat occupancy rate of 71.9 per cent and a market share of 59.3 per cent of the transport service industry despite fuel price hikes, fierce competition in air transport services and threats of bird flu outbreaks.
This is the 10th consecutive year Vietnam Airlines has ensured flight safety. The airline recently became a member of the International Air Transport Association (IATA) after meeting IATA Operational Safety Audit (IOSA).
Last year, Vietnam Airlines signed a contract with American Airlines to conduct flights to the US and opened a direct route between Hanoi and Luong Prabang in Laos. It has also worked out a plan to open a non-stop route to the US by the end of 2007.
Vietnam News Agency - January 4, 2007
Vietnam Airlines profit below target
HANOI - Vietnam Airlines on Wednesday reported below-target profits for 2006 despite increased flights, passenger numbers and turnover, a shortfall it blamed in part on higher fuel costs.
The state-run carrier's turnover for the year reached 17,500 billion dong (nearly 1.1 billion dollars), 5 percent higher than expected and up 12.4 percent year-on-year, the airline said in a statement.
But pre-tax profits reached only 304.5 billion dong, or 92 percent of the target figure, the airline said in a statement. Officials declined to give the year-on-year change in pre-tax profits.
"The price of oil was 18.25 percent higher than expected, leading to an increase of 767 billion dong in flight fuel costs," it said.
Higher aircraft leasing costs, fierce competition from international airlines, bad weather, bird flu risks and unstable security in some regions had also affected the airlines' operations, it said.
The airline said it transported more than 6.8 million passengers, 3.1 million of them foreigners, an increase of nearly one million against 2005.
It also carried more than 106,000 tonnes of freight, up 9.8 percent.
Vietnam Airlines, one of the most profitable state-owned enterprises in the communist nation, will offer shares to the public in 2008 under a government decision announced this week.
Company officials said the state will keep a stake of up to 70 percent.
The airline joined the Geneva-based International Air Transport Association in December, which helps it streamline ticketing, passenger and cargo procedures and other activities.
Agence France Presse - January 3, 2007
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