Vietnam Airlines is currently the only airline operating direct flights between Vietnam and the United States.
Positive signals “The increasingly positive operating results on the direct flight from Ho Chi Minh City to San Francisco, one of the trade gateways of the United States, not only contribute to accelerating the recovery process of Vietnam Airlines after the pandemic, but also establish a solid position for the national airline in the largest and most competitive aviation market in the world today,” said Mr. Dang Anh Tuan, Deputy General Director of Vietnam Airlines. Vietnam Airlines is currently the only airline operating direct flights between Vietnam and the United States, after officially operating the Ho Chi Minh City - San Francisco route from November 2021, completing the criteria according to the high and strict standards of US civil aviation. In particular, the sprint to open the direct flight from Vietnam to the United States was carried out by Vietnam's national airline from around the beginning of 2020. In Southeast Asia, Vietnam Airlines is one of the few airlines operating direct flights connecting to the US market. “The regular direct flight from Ho Chi Minh City to San Francisco was opened as soon as the Covid-19 pandemic was under control, which is of strategic significance in fulfilling political tasks and establishing a trade bridge between the two countries; at the same time, it is an important step for Vietnam Airlines to raise its position, making Vietnam Airlines a major airline in the region,” said the leader of Vietnam Airlines. It should be added that with more than 2.2 million overseas Vietnamese, accounting for more than 50% of the total overseas Vietnamese population worldwide, and a large number of Vietnamese students studying abroad - ranked 6th in the US, the Vietnam - US aviation market is always attractive to any airline. However, this is one of the longest routes in the world, requiring operators to meet strict standards on aviation security and safety. In addition to the advantage of time, direct airlines always face fierce competition from airlines with connecting flights, putting great pressure on selling prices. In fact, connecting flights take longer, making passengers more tired, but in some cases the ticket price can be as low as 50% of the direct flight price. It is known that as of September 2024, air tickets to the United States from Vietnam are being sold by about 30 international airlines. On average, there are hundreds of flights to the United States departing from Hanoi/Ho Chi Minh City to San Francisco, New York, Los Angeles, Dallas... every day with 1 to 3 stops. Overcoming competitive pressure and difficulties in the early stages of operation, Vietnam Airlines' direct flights from Vietnam to the United States, Ho Chi Minh City - San Francisco route, are increasingly improving in efficiency, getting closer and closer to the goal of balancing revenue and expenditure. Specifically, in 2023, Vietnam Airlines will operate 388 flights on the Ho Chi Minh City - San Francisco route, transporting nearly 87,000 passengers, an increase of 26% compared to 2022; The average seat utilization rate reached 81%, an increase of 9% compared to 2022. In the first 6 months of 2024, Vietnam Airlines operated 200 flights, transporting 47,500 passengers; an increase of 16% compared to the same period in 2023, the average seat utilization rate currently reached 84%. Notably, although operating only 4 flights/week, Vietnam Airlines currently holds 35% of the market share, rising to the No. 1 position on the Ho Chi Minh City - San Francisco route, surpassing competitors with long-standing and complete products such as EVA Air, China Airlines, Asiana Airlines... In general, the Ho Chi Minh City - San Francisco direct route has contributed positively to the overall production and business efficiency of Vietnam Airlines by helping the airline increase the average number of flight hours/aircraft/month, thereby contributing to optimizing fixed costs and improving the overall efficiency of the Corporation. “The Ho Chi Minh City - San Francisco route not only brings in direct revenue on this route, but also contributes additional revenue to the entire flight network revenue of Vietnam Airlines, estimated at 1 million USD/year,” shared a leader of Vietnam Airlines.
Symbol of commercial cooperation In addition to operating direct flights from Ho Chi Minh City to San Francisco, Vietnam Airlines also cooperates closely with US partners in transporting passengers and cargo. Accordingly, Vietnam Airlines is cooperating with US airlines, including Delta Airlines, United Airlines, American Airlines, Alaska Airlines and Hawaiian Airlines. The cooperation products include international and domestic routes of the two countries. The results of SPA cooperation with US airlines in 2023 of Vietnam Airlines reached over 76,000 passengers, 2.7 times higher than in 2019. The results of SPA cooperation in the first half of 2024 reached over 27,000 passengers, equal to 65% compared to the same period in 2023. Vietnam Airlines is also effectively cooperating in codeshare with Delta Airlines. The advantage of the codeshare cooperation between Vietnam Airlines and Delta Airlines is to increase connectivity, allowing the flight numbers of the two airlines to be displayed on each other, thereby enhancing the image presence of Vietnam Airlines and Delta Airlines in the two countries. The results of codeshare cooperation with Delta Airlines in 2023 reached over 5,000 passengers, 2.8 times higher than in 2019. In the first half of 2024 alone, it reached over 1,800 passengers, equal to 65% compared to the same period in 2023. Regarding aircraft engineering, Vietnam Airlines has signed and is implementing contracts to use AHM aircraft management engineering software services; a contract to use Toolbox Mobile for Boeing 787 aircraft; a contract to remotely monitor ADEM (A321 CEO) EMP engine signed with partner Pratt & Whitney; a contract to maintain Airbus A321 Neo GTF engines with Pratt & Whitney Company; Airbus A321 CEO V2500 engine maintenance contract with IAE Company; Boeing 787 GEnx engine maintenance contract with GE Company... In particular, Vietnam Airlines' commercial cooperation relationship with the world's leading aircraft manufacturer - Boeing - is still considered the largest, most reliable and most durable. According to a representative of Vietnam Airlines, the "chronicle" of cooperation between Vietnam Airlines and Boeing began very early, right after the United States lifted the embargo on Vietnam in 1994. At that time, Vietnam Airlines leased Boeing 767 aircraft for operation. Since then, Boeing has been the wide-body commercial aircraft brand that Vietnam Airlines has always chosen to operate with a series of famous aircraft lines such as Boeing 777, Boeing 787 Dreamliner. In the current fleet, Vietnam Airlines is operating 16 Boeing 787s manufactured by Boeing (including 11 Boeing 787-9s and 5 Boeing 787-10s) and will soon receive 1 more Boeing 787-10. This contributes to making Vietnam Airlines one of the airlines with the largest Boeing 787 fleet in Asia. In addition to operating the Boeing 787 fleet, during the high-level visit of US President Joe Biden to Vietnam in September 2023, Vietnam Airlines also signed a memorandum of understanding with Boeing on increasing the new fleet in the coming time. The two sides are actively negotiating to ensure the effectiveness of this project with a scale of up to 10 billion USD. “The cooperation process with Boeing not only helps Vietnam Airlines modernize its fleet, but also promotes its ability to be self-sufficient in aviation technology. The operation of Boeing wide-body aircraft also helps Vietnam Airlines compete in the international market and improve operational efficiency on long-haul flights," said Mr. Dang Anh Tuan. In addition, aircraft purchase cooperation and major agreements between Vietnam Airlines and Boeing are often carried out under the witness of senior leaders of the two countries, emphasizing the importance of aviation cooperation in promoting economic, trade and political relations, including improving the trade balance between Vietnam and the United States. "We will continue to tighten and expand cooperation with US trade partners, which have enjoyed many advantages since the two countries became Comprehensive Strategic Partners exactly one year ago," emphasized the leader of Vietnam Airlines. Source: https://baodautu.vn/vietnam-airlines-khang-dinh-vi-the-vung-chac-tai-thi-truong-hoa-ky-d225366.html
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