Vietnam Airlines, ANA boost business ties

 

 

The cooperation agreement officially came into effect when ANA became the main strategic partner of Vietnam Airlines, under a US$109 million deal signed on Saturday.

 

Under the deal, ANA Holdings will complete the purchase of 8.77 per cent of Vietnam Airlines’ stake, worth 2.43 trillion dong ($107 million), by July 1.

 

As of October 30, Vietnam Airlines and ANA Holdings will cooperate on 30 domestic routes in Japan and Vietnam as well as 10 international routes between the two nations.

 

The two sides will also join hands on services such as check-in procedures, cargo, transport and cartering, as well as aircraft maintenance and other ground services at Vietnam’s and Japan’s airports.

 

As the leading carrier in Vietnam, Vietnam Airlines has set up an airway network connecting 20 domestic and 29 international destinations. It currently operates 66 flights to Japanese airports in Narita, Haneda, Chubu, Kansai and Fukuoka each week.

 

Asia is a key market for ANA in its strategy to expand its international operations. As such, Vietnam Airlines is an ideal partner as the two sides have similar attitudes towards high development standards, being accessible to customers and effective operations. As part of this cooperation agreement, Vietnam Airlines will help ANA expand its air network between Asia and North America and for domestic flights in Asia, especially in Laos, Cambodia, Myanmar and Vietnam, where Vietnam holds a key position.

 

Vietnam Airlines aims to become one of the leading airlines in the Asean and a preferred carrier in Asia, based on service quality, by 2020.

 

To turn its ambitious plan into reality, Vietnam Airlines will ensure its sustainable development by focusing on investment in key infrastructure for repairing and maintaining technology, the aviation industry, training centres and passenger terminals, as well as investment in technical infrastructure in local airports.

 

Vietnam Airlines expects to lead the way in attracting a highly intelligent workforce to the country through the use of modern technology, international integration, an exciting work environment and high income, as well as business stability and opportunities to gain vocational training and to advance.

 

The business will try to retain its leading role in national airway transportation, creating service products with reasonable prices for a stable economy and taking on political tasks assigned by the Party and State, as well as assisting national security.

 

In 20 years of building and development, VNA has earned 622 trillion dong in total revenue, reflecting an average growth rate of 15.97 per cent per year and pre-tax profit of nearly 12.5 trillion dong.

 

In the first quarter of this year, the corporation earned an estimated consolidated revenue of more than 19 trillion dong, equivalent to 26.4 per cent of its annual target. Its pre-tax consolidated profit was estimated at more than 1 trillion dong, a year-on-year increase of 32.5 per cent.

 

Co-operating with VNA is seen as an important investment for ANA Holdings in the Asian market. This is ANA’s biggest capital investment in the area.

 

Based on its vision to become one of the world’s leading aviation corporations through customer satisfaction and strong values, ANA has set targets to improve its operation capacity, finances and business environment and will announce a plan to introduce new aircraft to its fleet of Airbus A380s.

 

In the next five years, ANA plans to achieve a growth rate of 40 per cent in revenue from the international transportation of passengers and goods and to increase its revenue threefold compared to budget airlines. It expects to make a profit of 200 billion yen in 2020.

 

The fleet will be expanded to some 300 aircraft, three-quarters of which will be fuel-saving planes. Three new Airbus A380 aircraft will be used to exploit the route between Tokyo and Honolulu.

 

The corporation will develop Vanilla Air to make it the number one budget carrier in Tokyo.

 

ANA will actively expand its traditional aviation business, budget carrier operations and the transportation of goods to foreign countries and will continue raising profits from its non-aviation businesses.

 

US$1 = 22,1700 dong as of 6/3/2016 via oanda.com