Vietnam Airlines Joint Stock Company (Vietnam Airlines) has announced that it achieved record profits of 2,800 billion Vietnamese dong (nearly USD124.6m), in 2017. Exceeding all targets the company attained its excellent results having taken advantage of Vietnam's stable macroeconomic development and consistent growth of tourism, and by adopting flexible solutions to deal with challenges. Key achievements include:

1. Outstanding growth in revenue and profit 

In 2017, Vietnam Airlines and its member airlines (including Jetstar Pacific and VASCO) provided nearly 180,000 safe flights and transported 26.5 million customers, an increase of 6.7 percent compared to 2016. The volume of air freight transportation was estimated at 343,000 tons, up 19 percent compared to the previous year. Its average domestic market share reached 60 percent, and its international market share reached 32.3 percent.

The total consolidated revenue of Vietnam Airlines and its subsidiaries was estimated at VND88,400 billion; its consolidated pre-tax profit reached a record of over VND2,800 billion, a growth of 72 percent compared to the planned target and a year-on-year increase of 8.3 percent. Vietnam Airlines achieved an estimated VND66,200 billion in total revenue and VND1,850 billion in total pre-tax profit, an increase of approximately 50 percent compared with the planned figure and 8 percent compared to 2016. Its contribution to the State budget nearly doubled, exceeding the planned target by VND1,900 billion.

These impressive results were driven by the airline's development of a modern fleet, extensive flight networks, continuous improvement of its services, strengthening of bilateral and multilateral cooperation, and commercial promotion.

2. Equitization of the parent company

In January 2017, more than 1.2 billion HVN shares of Vietnam Airlines were transacted on UpCOM, as Vietnam Airlines became one of the country's top large-scale public companies. By the end of 2017, HVN reached a high of VND42,000 per share, up by 60 percent compared with its starting price. Vietnam Airlines expects to have its shares listed on Ho Chi Minh City Stock Exchange (HOSE) in the second quarter of 2018 and to continue issuing more shares to existing shareholders to increase its chartered capital and reduce the state ownership ratio.

3. World leading On-time Performance (OTP)

Vietnam Airlines exceeded its OTP target in 2017, especially the departure OTP which reached an average rate of over 90 percent, bringing Vietnam Airlines into the world's leading group of airlines. Vietnam Airlines prides itself on maintaining its OTP to a high level throughout the year, even during high seasons. Maximum security, safety and technical requirements are also always strictly implemented on each flight. Aircraft operational readiness rates reached an average of 94 percent.

4. Development of state-of-the-art fleet 

Vietnam Airlines' fleet development continued in 2017 with the delivery of four Airbus A350-900 XWBs and one Boeing 787-9 Dreamliner, increasing the total number of these aircraft to 10 and 11 respectively. The new widebody aircraft have been operated on the Hanoi-HCMC route and important international flight routes to the UK, Europe, Northeast Asia and Australia, contributing to Vietnam Airlines' continued improvement of its international 4 star-rated service quality. Vietnam Airlines' roadmap for upgrading narrow-body aircraft was also marked by significant progress, namely a contract with the Aviation Capital Group (ACG) for a long-term lease of six A321neos, and a contract for buying and maintaining A321neo engines costing US1.5 billion with Pratt & Whitney, signed during US President Donald Trump's visit to Vietnam in November 2017. 

5. Continued improvement of service quality

Vietnam Airlines maintained its status as a 4-star Skytrax international airline for a second consecutive year. Vietnam Airlines also launched its 24/7 Customer Service Centers, providing quality service with a high level of personalisation. Meanwhile, by operating its new Lotus lounges at Noi Bai Airport and Tan Son Nhat Airport, Vietnam Airlines has strengthened its synchronized service chain, bringing its customers more comfort and convenience. As a result, its Net Promoter Score index exceeded its planned target by 1.7 points. 

6. Vietnam Airlines' recognized leading role and position as a national airline

Vietnam Airlines is always aware of its responsibility as a national airline during the process of integration and development. As the official transporter for APEC 2017, Vietnam Airlines provided nearly 110 additional flights to Da Nang (equivalent to 20,000 seats) to meet increased travel demands during the course of the event. Vietnam Airlines' positive contribution saw the airline recognized as a “Special Sponsor for APEC Vietnam 2017” by the National Committee for APEC 2017.

7. 200 million passengers transported in over 22 years 

In the period 1995-2017, Vietnam Airlines served more than 200 million passengers. The total revenue reached over VND777,000 billion in 22 years, with an average annual growth rate of 15.62 percent; a total pre-tax profit of approximately VND18,000 billion. This result cemented Vietnam Airlines' position and leading role as a national airline in Vietnam's economic development, and its role as an efficient commercial-cultural-political connection between different areas in the country, as well as between Vietnam and the world. 

8. Cooperation for diversification of products 

Vietnam Airlines has continued its close partnership with Jetstar Pacific in terms of products, resources and brands in order to strengthen the security of its flight networks and enable the diversification of its products. The most remarkable example is the joint flight schedule among the country's three largest cities, in which one flight takes off every 30 minutes on the Hanoi-HCMC route, while the flight schedule also satisfies diverse demand on Hanoi/ HCMC – Danang.

Large-scale cooperation agreements have been signed with international airlines, including a comprehensive joint venture contract with Air France (France), a codeshare contract with Bangkok Airways (Thailand), and an agreement with LOT (Poland), leading to additional options for customers and strengthening Vietnam Airlines' competitiveness in the international market. 

9. Prestigious international and national awards

Vietnam Airlines' dedication to innovation and development has been recognized by international and national communities through a series of prestigious awards in 2017. Vietnam Airlines was awarded the “Asia Pacific Airline of the Year” by the Center for Asia Pacific Aviation (CAPA), and both “World's Leading Airline – Premium Economy Class” and “World's Leading Cultural Airline” in the World Travel Awards. Forbes Vietnam named Vietnam Airlines one of the 15 top brands holding the highest value in Vietnam; while the ASEAN-China Business Council (CABC) voted Vietnam Airlines one of the 10 top ASEAN companies proving their efficient performance in China. Highly successful brand building and development has been reflected by increasing brand value, with Vietnam Airlines promoted by three levels to AA level by Brand Finance, making it one of the top 10 strongest brands and the most improved brand strength (BSI) in 2017 in Vietnam.

10. An effort to develop community programmes 

Committed to contributing to the development of society as a whole, Vietnam Airlines has been running a “Flights of Love” campaign comprising various meaningful activities with the goal of helping communities in need. During the 2017 Mid-Autumn Festival, Vietnam Airlines coordinated with social enterprises to bring disadvantaged artists' handcrafted products to its passengers. Another activity involved fulfilling less fortunate children's dreams of experiencing the jobs of flight attendants, pilots, aviation engineers etc. What's more, activities were also carried out to provide relief to Vietnamese people affected by storms and flooding, all with the aim of supporting and instilling great values in the community.

Turning to 2018, the international air transport market is expected to grow rapidly, with Vietnam's domestic market specifically predicted to grow at a relatively high rate. Vietnam Airlines will continue to focus on proactively enabling its expansion and promoting its partnerships with major international airlines while ensuring maximum security and flight safety; applying the latest technology and improving its aircraft maintenance capacity. Fleet development and flight network expansion are Vietnam Airlines' strategic priorities in 2018, with plans to buy new Airbus A350-900 and A321neo aircraft, as well as complete its fleet development plan for the 2021-2025 period with a vision towards 2030. The airline will also continue its research on a plan to open a direct flight to the United States. 

-ENDS-

Notes to editors:

About Vietnam Airlines:

Vietnam Airlines is the flag carrier of Vietnam and the major carrier in the Mekong sub-region, operating 90 routes to 20 domestic and 29 international destinations with an average of 400 flights per day. Vietnam Airlines has been certified as a 4-Star Airline for 2 consecutive years by the prestigious Skytrax, the world's leading airline and airport rating organization. During 22 years of development at a 2-digit annual growth rate, Vietnam Airlines has achieved a remarkable advancement to become a major airline in Asia's aviation market. In June 2010, Vietnam Airlines joined SkyTeam Alliance, affirming the carrier's new position on the global aviation map as a strategic partner of the alliance in Southeast Asia region. In 2015, Vietnam Airlines became the first airline in the world to operate both next-generation aircraft- Boeing 787-9 Dreamliner & Airbus A350-9XWB- at the same time. Positioning itself as a modern carrier whose brand is characterized by Vietnam's rich culture and national identity, Vietnam Airlines is striving to become one of the most favorable carriers in the Asia-Pacific region.

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