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VIETNAM AIRLINES JOINT STOCK COMPANY

VIETNAM AIRLINES JOINT STOCK COMPANY


Project Description
  • 0
  • 08/05/2019
OVERVIEW
Vietnam Airlines Joint Stock Company (Vietnam Airlines), formerly known as Department of Civil Aviation, was established in January 1956. The Company has its core business in provision of air-transport services. Vietnam Airlines has been put into operation under the model of a joint stock company since 2015. In 2018, Vietnam Airlines and its members occupies 39.7% of the Vietnam domestic passenger air-transport marketshare, 25.5% of the international passenger air-transport marketshare, 63.3% of the Vietnam domestic cargo air-transport marketshare and 18.5% of the international cargo air-transport one. HVN has been listed on Hochiminh Stock Exchange (HOSE) since April 2019.
MAIN BUSINESS
  • Providing air-transport services;
  • Providing direct support services in air-transport;
MARKET POSITION
  • In 2018, Vietnam Airlines and its members (Jetstar Pacific Airlines, VASCO) transport more than 21.9 million passengers and approximately 342,000 tons of cargoes. Vietnam Airlines and its members occupies 39.7% of the Vietnam domestic passenger air-transport marketshare, 25.5% of the international passenger air-transport marketshare, 63.3% of the Vietnam domestic cargo air-transport marketshare and 18.5% of the international international cargo air-transport one.
  • By December 31, 2018, Vietnam Airlines has operated a total number of 91 flight paths, including 37 domestic paths and 54 international ones. Vietnam Airlines is operating 93 airplanes, including 54 airplanes under its ownership and 39 leased ones.
  • In addition, Vietnam Airlines has a superior advantage in ownership of complete technical infrastructure with flight services and ground services. As a result, Vietnam Airlines does not depend on services providers.
GROWTH STRATEGY
  • Maintaining its leading position in Vietnam air-transport market and aiming to gain the dominating position in Cambodia-Laos-Myanmar-Vietnam Sub-region;
  • Associating and cooperating with members of Vietnam Airlines, including Jetstar Pacific, Cambodia Angkor Air and VASCO to research and develop range of products and services to satisfy transport demand of customers and create scale advantage in adverstising and promoting products and services, training manpower, and maintaining airplane;
  • Investing and developing technical infrastructure in repairing and maintenance, education and training and services supply chain;
PROSPECTIVES
  • The rally of the global market stimulates commercial activities and demand in tourism, which boosts the development of Vietnam aviation industry. Besides, with strategically geographic advantages in the region and potential in tourism development, the International Air Transport Association (IATA) considers Vietnam as one of the most growing market in coming years.
RISK
  • In the recent years, there have been concerning events which affects air-transporation negatively, including tsunami in Japan, H5N and Ebola diseases, public debt crisis in Europe, escalated political conflict in Ukraine and Thailand, dispute in the East Sea and recent Brexit.
  • There is a harsher competition in the world market. Foreign airlines are promoting and expanding Asian markets, including Vietnam. Decrease in fuel prices creates favorable condition for low-cost airlines to increase number of flights and improve competitiveness in domestic market segment.
  • Although Vietnam aviation infrastructure has been upgraded and modernized, overloading still happens frequently, especially in Tan Son Nhat Airport. Such circumstances also impact on operating capacity of airlines.