Vietnam Airlines
Join Date: Mar 2008
Location: Eagles Nest
Posts: 52
Likes: 0
Received 0 Likes
on
0 Posts
Which "competition" are you talking about ? Vietjet with 2 A320's or the 70% stake VN now owns in Jetstar. Did not see too many internationals beef up service. Low season after Tet and every airlines takes a "time out" to run numbers and figures for a while. Seen the hiring freeze before and it's been lifted after a couple of months, as new airplanes come and more pilots move on.
Join Date: Nov 2006
Location: Singapore
Posts: 5
Likes: 0
Received 0 Likes
on
0 Posts
well, the competition is getting tougher...
New airlines are flying to Vietnam and offer mostly a better product to a better price.
Qatar Airlines has increased significantly the flights to HCM and Hanoi.
Turkish is flying as well since a couple of time.
Emirates has just announced to fly 6 times a week to HCM.
On existing routes we are behind:
Singapore A. flies with 777 to HCM, VN with a 321
Thai A fies with 330, VN with 321
Cathay with 330 or 747 and we with 321 and so forth... So guess what premium customers chose for if they get the bigger seat and better serivce for the same price.
Professional marketing is on principal not existing.
The service concept of VNA is not having the standards of the other legacy carriers we compete with.
National flights are not profitable because the price for the tickets are fixed by the government and not market prices. All figures of the SOEs in Vietnam are state secret but 2010 a 30 millions loss with domestic flights was published by the newspapers. This reveals the trend.
New airlines are flying to Vietnam and offer mostly a better product to a better price.
Qatar Airlines has increased significantly the flights to HCM and Hanoi.
Turkish is flying as well since a couple of time.
Emirates has just announced to fly 6 times a week to HCM.
On existing routes we are behind:
Singapore A. flies with 777 to HCM, VN with a 321
Thai A fies with 330, VN with 321
Cathay with 330 or 747 and we with 321 and so forth... So guess what premium customers chose for if they get the bigger seat and better serivce for the same price.
Professional marketing is on principal not existing.
The service concept of VNA is not having the standards of the other legacy carriers we compete with.
National flights are not profitable because the price for the tickets are fixed by the government and not market prices. All figures of the SOEs in Vietnam are state secret but 2010 a 30 millions loss with domestic flights was published by the newspapers. This reveals the trend.
Join Date: Mar 2008
Location: Eagles Nest
Posts: 52
Likes: 0
Received 0 Likes
on
0 Posts
Let - while you have some valid points I think that the various new airlines which came to Vietnam do not really compete on same routes. While Turkish, Qatar and others could also fly passengers to Europe, they do not do this non stop while also serving their own regions which VN does not.
And Cathay, Singapore and others have always been flying bigger equipment; no change there. I also have to mention that they charge quite a bit more for their product which is fare game, giving the customer a choice between bigger aircraft with more amenities or something smaller at a cheaper ticket price
Back to tknapp's question; not sure if these are all reasons for VN stopping recruitment for a while if this in fact is the case. The season is slow right now and there are changes in the fleet coming up with aircraft coming and going, so guess this would be the reason behind it. Just a speculation on my side.
And Cathay, Singapore and others have always been flying bigger equipment; no change there. I also have to mention that they charge quite a bit more for their product which is fare game, giving the customer a choice between bigger aircraft with more amenities or something smaller at a cheaper ticket price
Back to tknapp's question; not sure if these are all reasons for VN stopping recruitment for a while if this in fact is the case. The season is slow right now and there are changes in the fleet coming up with aircraft coming and going, so guess this would be the reason behind it. Just a speculation on my side.
Last edited by wingdeagle; 23rd Feb 2012 at 04:36.
