Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines Corporation, said that 2025 is a pivotal year for domestic airlines to develop strongly.
International visitors increase sharply, domestic visitors decrease
At the conference to review the work of 2024 and deploy key tasks for 2025 of the transport sector on the afternoon of December 30, Mr. Le Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines Corporation, acknowledged that the business environment in 2024 will have many difficulties and advantages intertwined. The international aviation market continues to recover and grow, but purchasing power in the domestic market has weakened.
Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines Corporation (Photo: Ta Hai).
In addition, macroeconomic factors and input costs have many unfavorable developments such as political conflicts in the world, fuel prices remain high, and important currencies have fluctuated strongly. Global supply chain disruptions and engine recalls have caused aircraft rental prices, spare parts and repair and maintenance costs to increase.
Regarding the aviation market situation to/from Vietnam, the total number of international visitors to Vietnam is estimated at nearly 41 million, an increase of more than 28% over the same period, close to the pre-pandemic level (2019). The total domestic tourist market reached over 34 million visitors, down 14% over the same period and down 8% compared to 2019.
According to Mr. Hoa, the main reason is the shortage of aircraft of domestic airlines and the weakening purchasing power of the market.
In that context, to ensure the goals set out in the plan at the beginning of the year, Vietnam Airlines has regularly updated the market, continuously reviewed and adjusted products based on the goals of ensuring market share, efficiency, balancing aircraft resources and take-offs and landings.
At the same time, continue to open new routes to diversify products, increase aircraft utilization efficiency, as well as promptly lease 4 additional aircraft during the peak Tet period to meet the increasing travel needs of people.
Vietnam Airlines also proactively changes the method of building and operating flight schedules, developing additional exploitation products during the time frame to take advantage of aircraft, thereby optimizing flight network products and increasing fleet utilization efficiency.
"The average operating hours reached 11 hours/ship/day, an increase of 25% over the same period and an increase of 7% compared to 2019. At the same time, it enhances the efficiency of price and seat management, helping to increase the seat utilization coefficient of the entire flight network," said Mr. Hoa.
With these solutions, Vietnam Airlines' flight network has basically fully recovered and grown compared to the pre-pandemic period, with 58 international routes to 30 destinations in 18 countries and 38 domestic routes to 22 destinations.
The total number of flights reached nearly 140,000, an increase of more than 7% over the same period, recovering 95% compared to 2019. The number of passengers transported on the entire network is estimated at nearly 23 million, an increase of nearly 8% over the same period, almost completely recovering compared to 2019 (over 99%). The parent company's revenue is estimated at over VND 84,400 billion and has completed the goal of balancing production and business efficiency in 2024.
Opportunities and challenges intertwine
Vietnam Airlines will focus on solutions to improve resource efficiency and increase fleet utilization efficiency.
Assessing 2025, the business environment still has many advantages and difficulties, but Mr. Hoa said that the difficulties of 2024 still remain and there are not many signs of improvement such as the political situation in the world is still unstable, input factors such as exchange rates and fuel prices are high, difficulties in engines and spare parts.
For the Vietnamese aviation market, the volume of passengers transported is expected to continue to grow well over the same period. Total international passengers are expected to reach over 45 million, an increase of over 11% over the same period. Total domestic passengers are expected to reach nearly 36 million, an increase of over 5% over the same period.
In 2025, Vietnam Airlines will implement the contents of the Corporation's restructuring project, ensuring good and timely completion; focusing on solutions to improve resource efficiency, especially increasing fleet utilization efficiency by 5% compared to 2024, striving to increase labor productivity by over 7%.
At the same time, continue to strictly manage cash flow, balance the use of cash resources to meet production and business needs, repay debts and allocate capital for essential and necessary investment activities.
The airline aims to have a total of over 156,000 flights by 2025, an increase of over 12% over the same period; over 25 million passengers transported across the entire network, an increase of 12% over the same period; and 336,300 tons of transported goods, an increase of 10% over the same period.
The parent company's revenue is estimated to reach over VND 95,600 billion, up 13.3% over the same period, and the Corporation aims to exceed the 2024 performance target and the 5-year plan reported in the overall restructuring project of Vietnam Airlines.
In order to achieve the above goals, Vietnam Airlines recommends that the Prime Minister and coordinate with relevant ministries and sectors to develop a strategy for the development of the aviation industry in connection with other sectors such as tourism, hotels, services, road transport, etc., along with programs to develop national competitiveness that also need to be built to build the aviation industry into a spearhead, connecting with other sectors.
The Government has issued open and simple policies and mechanisms to support Vietnam Airlines and businesses in the industry to quickly deploy a complex of synchronous aviation specialized service works at Long Thanh International Airport; further loosening immigration policies, thereby adding visa-free countries, especially large potential markets such as the US, Australia, India, etc.
Vietnam Airlines leaders affirmed that they will continue to resolutely implement self-solutions as reported in many documents to ensure production and business efficiency, maintain market share, ensure safety and service indicators, and successfully complete key tasks of 2025.
Source: https://www.baogiaothong.vn/vietnam-airlines-dat-muc-tieu-van-chuyen-hon-25-trieu-khach-trong-nam-2025-192241230203549594.htm
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