Vietnam Airlines to change terminal in Paris

HCMC - Vietnam Airlines as a SkyTeam will land and take off at Terminal 2E at Charles de Gaulle Airport in Paris from October 31 to harmonize with the operations of other SkyTeam member carriers.

Vietnam Airlines’ forthcoming move to the new terminal from Terminal 2C of the airport is also aimed at providing passengers with the opportunity to use a better waiting hall and kiosks for completing check-in procedures.

Pham Viet Thanh, deputy general director of Vietnam Airlines, clarified the spacious and well-furbished Terminal 2E would offer passengers new levels of comfort and convenience when traveling to and from Charles de Gaulle or transiting at this European airport before heading to other destinations.

Vietnam Airlines’ holders of business-class tickets and members of its Golden Lotus program will be allowed to enjoy services at the business lounge of Air France at Terminal 2E from that day.

In addition to Air France and Vietnam Airlines, other members of SkyTeam having their flights at Terminal 2E are Royal Dutch Airlines, Delta Airlines, Aeroflot, Korean Air, China Southern Airlines and Aero Mexico.

Vietnam Airlines spent heavily improving its services and opening more domestic and international flights before it became a full member of the world’s second largest global airline network after Star Alliance on June 10 this year. The airline is expanding its aircraft fleet to 70 by the end of this year to 115 by 2015 and 165 by 2020.

Vietnam Airlines operates more than 290 daily flights to 20 domestic and 26 international destinations. At present, the national flag carrier uses wide-body Boeing 777 aircraft for eight flights weekly from Vietnam to Paris.

Air France will begin its three non-stop services between Paris and HCMC every week from November 2 instead of flying via Bangkok at the moment to meet rising demand for travel to and from Vietnam.

Air France’s 747-400 aircraft will leave Tan Son Nhat Airport for Charles de Gaulle Airport in the evening of Wednesdays, Fridays and Sundays. The opposite services will depart from the European airport on Tuesdays, Thursdays and Saturdays and land on Tan Son Nhat at 4:55 p.m. the next days.

From November, Air France will also have two weekly code-share services from HCMC and five frequencies from Hanoi, and these non-stop flights will be operated by Vietnam Airlines under an agreement between the two carriers.

Vietnam Airlines’ non-stop services will depart from HCMC on Tuesday and Saturday nights and from Noi Bai Airport in Hanoi at 11:55 p.m. on Tuesdays, Wednesdays, Fridays, Saturdays and Sundays for Charles de Gaulle.

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Vietnam Airlines to begin training pilots at home

Vietnam Airlines will send trainees for basic pilot training to the country’s first flight training institute in Vung Tau as part of its initiative to begin training at home.

The state-owned carrier signed an agreement with the institute, the Viet Flight Training Joint Stock Co, last Thursday.

Three groups of 20 trainees each will undergo a 72-week course, partially in France with assistance from the ESMA Aviation Academy, a renowned French training center.

By the end of 2012 it hopes to carry out the entire training in Vietnam.

Nguyen Sy Hung, the carrier’s chairman, said at the signing ceremony: “This is to help Vietnam Airlines actively control its pilot training plans, lower costs, and thus deliver a much stronger performance.”

By the end of this year the airlines will employ 636 pilots, 60 percent of them Vietnamese, he said, adding the figure will go up to 75 percent by 2015.

The carrier also plans to train 100 pilots every year during the decade through 2020 to achieve its target of expanding its crew size by 10 percent.

Viet Flight is the first Vietnamese flight training institute allowed to award the Airline Transport Pilot License.

It was established in June 2008 by Vietnam Airlines Corporation, Service Flight Corp of Vietnam, Vietnam Aircraft Leasing Co, and ESMA.

Between 2010 and 2011, it will run 4 more pilot training courses for carriers in Vietnam and in the region.

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Competition heats up in domestic airline market

Competition in the local airline market is set to get tougher as large carriers try to boost sales with lower airfares and new players get ready to launch their service, experts said.

National carrier Vietnam Airlines has launched a new program, offering discounts of up to 50 percent on domestic flights. Its airfares now cost between VND400,000 and VND860,000.

Low-cost carrier Jetstar Pacific have been selling 1,000 tickets at only VND100,000 from September 9 to October 10.

Vo Huy Cuong, head of the Civil Aviation Administration’s Air Transport Department, said airlies typically offer cheaper fares during the low season from September to October.

When both Vietnam Airlines and Jetstar Pacific cut their prices, the competition would get really tough on new players like Air Mekong and Blue Sky Air, said Cuong.

Air Mekong, a private air carrier that has partnered with Skywest Inc., will start its flights on October 9. The company will use four CRJ-900 aircraft produced by Montreal-based Bombardier Inc. for 20-30 flights per day.

An Air Mekong representative said the carrier is prepared for the competition. Each airline has its own strategies and Air Mekong will focus on business class services, the representative said.

Meanwhile,  Blue Sky Air, another new carrier, said it would also have its own niche market, using helicopters for its on-demand service.

An expert who wished to be unnamed said as private carriers are not supported financially by the government, they have to take measures to prevent losses in the long term otherwise they would be caught in another Indochina Airlines’ situation.

Indochina Airlines, the first private airline to run flights in Vietnam, early this year suspended its services due to debt problems.

The expert also said unlike Vietnam Airlines, smaller carriers are now allowed to operate international routes and thus they will not have more revenues to offset losses caused by domestic services.

Cuong said that the market has great potential for growth, but all the players would need to be competitive enough to stay in the game.

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Competition heats up in domestic airline market

Competition in the local airline market is set to get tougher as large carriers try to boost sales with lower airfares and new players get ready to launch their service, experts said.

National carrier Vietnam Airlines has launched a new program, offering discounts of up to 50 percent on domestic flights. Its airfares now cost between VND400,000 and VND860,000.

Low-cost carrier Jetstar Pacific have been selling 1,000 tickets at only VND100,000 from September 9 to October 10.

Vo Huy Cuong, head of the Civil Aviation Administration’s Air Transport Department, said airlies typically offer cheaper fares during the low season from September to October.

When both Vietnam Airlines and Jetstar Pacific cut their prices, the competition would get really tough on new players like Air Mekong and Blue Sky Air, said Cuong.

Air Mekong, a private air carrier that has partnered with Skywest Inc., will start its flights on October 9. The company will use four CRJ-900 aircraft produced by Montreal-based Bombardier Inc. for 20-30 flights per day.

An Air Mekong representative said the carrier is prepared for the competition. Each airline has its own strategies and Air Mekong will focus on business class services, the representative said.

Meanwhile,  Blue Sky Air, another new carrier, said it would also have its own niche market, using helicopters for its on-demand service.

An expert who wished to be unnamed said as private carriers are not supported financially by the government, they have to take measures to prevent losses in the long term otherwise they would be caught in another Indochina Airlines’ situation.

Indochina Airlines, the first private airline to run flights in Vietnam, early this year suspended its services due to debt problems.

The expert also said unlike Vietnam Airlines, smaller carriers are now allowed to operate international routes and thus they will not have more revenues to offset losses caused by domestic services.

Cuong said that the market has great potential for growth, but all the players would need to be competitive enough to stay in the game.

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IATA sees sharp rebound by global airlines this year

SINGAPORE - Global airlines are likely to post sharply higher profit in 2010 than previously forecast as the industry rebounds from economic recession, the International Air Travel Association said on Tuesday.

IATA sees the industry posting a combined net profit of US$8.9 billion, more than three times the previous forecast of $2.5 billion made in June, and compared to an estimate of nearly $10 billion losses in 2009.

"It is a significant improvement, much stronger than forecast," IATA chief executive Giovanni Bisignani told reporters in Singapore. "But I would say it is not time for big celebration, let's just do a nice party."

The trade body warned that increasing capacity due to new aircraft deliveries in 2011 will lead to slower growth for the industry and put pressure on yields and load factors, resulting in a lower net profit of $5.3 billion globally next year.

"The cyclical upturn in traffic and yields has been faster than expected, reflecting the post-recession rebound and tight capacity. However, the durability of this upturn is in increasing doubt in North America and Europe," IATA said in a statement.

IATA said Asia-Pacific airlines were the biggest beneficiaries of a sharp rebound in cargo revenues and it has revised up the profit forecast in this region to $5.2 billion from $2.2 billion.

In contrast, IATA said European airlines are expected to remain in the red although the agency lowered its loss forecast to $1.3 billion from a $2.8 billion loss in the previous estimate.

It was the second revision for global profit by the trade body, which predicted six months ago that the industry would lose $2.8 billion in 2010.

The global economic recession had sent the airline industry into its worst downturn in history, forcing airlines to cut capacity and lay off staff and sent Japan Airlines, Asia's biggest airline by revenue, into bankruptcy protection.

A number of major airlines in Asia, including Singapore Airlines and Cathay Pacific, have however expressed optimism on the outlook of the sector this year.

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Boeing supports Vietnam Air’s aircraft interior upgrade

A Boeing 777-200ER of Vietnam Airlines sits at Frankfurt Airport in Germany. Boeing aids the carrier in the interior upgrade of the aircraft of this type - Photo: Mong Binh

HCMC - The U.S. airplane maker Boeing has partnered with Vietnam Airlines in a program to modernize the interior of the airline’s four 777-200ER aircraft in a bid to provide improved services for passengers.

Boeing said on its website that it supported the flagship carrier’s goal to improve its passenger service by increasing the overall passenger experience and comfort while continuing to expand the network.

As part of the partnership, Boeing Commercial Aviation Services developed a cabin layout for the discerning needs of the SkyTeam member airline and its passengers.

The interior upgrade program also covers relocation of business class seats, installation of new deluxe economy and economy class seats, and changes to the in-flight entertainment system and cabin cooling systems among other.

Vietnam Airlines has just put into service the first 777-200ER aircraft with the latest cabin interior modernization in line with the upgrade program. The carrier often uses the aircraft of this type for international flights to Germany’s Frankfurt and other long-haul destinations.

Nguyen Van Hung, executive vice president of technical at Vietnam Airlines, said the program offered passengers improved serviced and backed the airline on the way to higher rankings in the region.

“Our interior modernization program is a key part of our efforts to provide market leading services and passenger comfort, further affirming Vietnam Airlines’ position as a major carrier in Southeast Asia, especially after we joined SkyTeam,” Hung said.

Vietnam Airlines now operates more than 290 daily flights on 75 routes to 20 domestic and 26 international destinations. The Hanoi-headquartered airline is expanding its flight network as well as its aircraft fleet, from nearly 70 to 115 by 2015.

Dennis Floyd, vice president of fleet services for Boeing Commercial Airplanes, noted the program aided competitiveness enhancement for Vietnam Airlines.

“This interior upgrade will support Vietnam Airlines’ aggressive plan to continue to compete among the world’s leading carriers,” he said.

Both Boeing and Vietnam Airlines do not mention the cost of the interior upgrade program.

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Boeing refurbishes Vietnam Airlines aircraft

Vietnam Airlines has teamed up with US aircraft maker Boeing to improve passenger comfort as the national carrier continues to expand its network and add new destinations.

Boeing is relocating and upgrading seats and interior facilities inside four of the airline’s 777-200ER aircraft. The new cabin layout “meets the discerning needs of the airline and its passengers,” the US company said in a statement issued August 26.

The first aircraft has been completed and put it into service.

“Our interior modernization program is a key part of our efforts to provide market leading services and passenger comfort, further affirming Vietnam Airlines’ position as a major carrier in the Southeast Asian region, especially after we joined the Skyteam alliance,” said Executive Vice President Technical Nguyen Van Hung.

The carrier joined the Skyteam Alliance in June to enlarge its network of destinations and cut operating costs.

As the national flag carrier, Vietnam Airlines operates more than 290 flights a day on 75 routes to 20 domestic and 26 international destinations. It expects to expand its fleet to 115 and 165 aircraft by 2015 and 2020 respectively, compared to 70 aircraft at present.

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Boeing refurbishes Vietnam Airlines aircraft

Vietnam Airlines has teamed up with US aircraft maker Boeing to improve passenger comfort as the national carrier continues to expand its network and add new destinations.

Boeing is relocating and upgrading seats and interior facilities inside four of the airline’s 777-200ER aircraft. The new cabin layout “meets the discerning needs of the airline and its passengers,” the US company said in a statement issued August 26.

The first aircraft has been completed and put it into service.

“Our interior modernization program is a key part of our efforts to provide market leading services and passenger comfort, further affirming Vietnam Airlines’ position as a major carrier in the Southeast Asian region, especially after we joined the Skyteam alliance,” said Executive Vice President Technical Nguyen Van Hung.

The carrier joined the Skyteam Alliance in June to enlarge its network of destinations and cut operating costs.

As the national flag carrier, Vietnam Airlines operates more than 290 flights a day on 75 routes to 20 domestic and 26 international destinations. It expects to expand its fleet to 115 and 165 aircraft by 2015 and 2020 respectively, compared to 70 aircraft at present.

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CAAV cannot force Indochina Airlines to pay off debts

Passengers pass by the emptied ticketing counter of Indochina Airlines at the domestic terminal of Tan Son Nhat Airport on Sunday. The fate of this carrier remains undecided though it has suspended services for almost 10 months - Photo: Mong Binh

HCMC – The Civil Aviation Administration of Vietnam (CAAV) has confirmed that it cannot force Indochina Airlines to pay off debts totaling tens of billions of dong for ticketing agents and service providers as this is a matter between the airline and its creditors.

However, CAAV will help the creditors with the steps to get their money back from the airline that has suspended services for almost 10 months because of financial woes, said Vo Huy Cuong, head of CAAV’s Air Transport Department.

Cuong explained that CAAV would only be able to inform Indochina Airlines of what the creditors requested for debt payment when the authority got the appeal from ticketing agents as the authority was not involved in the contracts signed by the first operational private carrier and the agents.

Cuong told the Daily on the phone that relevant regulations already in effect from 2006 clarified companies were not required to register with CAAV when they wanted to act as agents for a local airline. So, the agents should negotiate directly with the carrier and then take legal actions if talks between them do not bring about any good results.

Cuong said what CAAV would do in the case of Indochina Airlines was similar to the moves of Macau’s aviation regulator after the latter received CAAV’s document about the money that Viva Macau owed to ticketing agents and service providers in Vietnam. In its written reply, the foreign agency said it had told Viva Macau about its responsibility to settle debts but stressed payment would depend on legal procedures in Macau.

Viva Macau suddenly suspended its services to HCMC and Hanoi in late March this year, and has not paid money back for the already booked tickets and deposits of travel agencies, ticketing agents and passengers in Vietnam.

Viva Macau is said to owe more than US$100,000 to travel agencies, ticketing agents and passengers in this country. But, the total debts of this low-cost carrier in Vietnam are much bigger if unpaid bills of airport service providers are also calculated.

Cuong said CAAV did not know the exact debts of Indochina Airlines but put the combined amount at tens of billions of dong, with the biggest parts attributed to the jet fuel supplied by Vietnam Air Petrol Co. (Vinapco) and services providers at Tan Son Nhat Airport.

Tran Huu Phuc, director of Vinapco, said Indochina Airlines had not paid off any of the around VND20 billion (more than US$1 million) worth of jet fuel.

Phuc said Vinapco was waiting for instruction of the parent company, Vietnam Airlines Corp. and observing moves of airport services suppliers before preparing legal procedures against Indochina Airlines.

Cuong said Indochina Airlines would have been grounded for one year this October and thus having its license revoked according to the country’s civil aviation regulations.

The Ministry of Transport has not decided the fate of Indochina Airlines though Cuong said CAAV had reported the actual situation of this airline to the ministry months ago.

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