Airline News
Vietnamese carriers plan expansion
March 16th 2015
The first A350-900 for Hanoi-based Vietnam Airlines (VNA) has rolled out of the Airbus paint shop in Toulouse. The new aircraft type is supposed to be a game changer for the carrier looking to replace its entire B777-200ER long-haul fleet with the 14 A350s and 19 B787s it has on order for delivery between May and early 2019. Read More »
Meanwhile, VNA confirmed it was still seeking strategic foreign investors to acquire 282 million shares, equivalent to 20% of its charter capital. The carrier has previously held discussions with All Nippon Airways (ANA), and many analysts believe the Japanese carrier to be among those tendering. According to VNA’s prospectus, strategic investors must hold their stake for at least five years, and cannot own part of a rival Vietnamese carrier at the same time. The Vietnamese flag carrier said the equity sell-off could raise some VND6.3 trillion ($300 million), but it also plans to raise additional working capital from the sale of the B777 fleet and the return of two A330s to the lessor. With this year’s planned delivery of 12 new aircraft—three Airbus A321s, four A350s, and five 787s—the airline aims to have 80 aircraft in its renewed fleet by the end of 2015.
Over at low-cost rival VietJet Air, the focus for 2015 is on domestic and regional expansion as the carrier has abandoned plans for long-haul market entry “for at least three to five years”. At press time, VietJet operated a fleet of 18 A320 aircraft and said it would add another 13 of the type in 2015. Luu Duc Khanh, the carrier’s managing director, told media in February he was also studying the potential acquisition of regional aircraft to serve smaller airports in addition to opening or taking over thin routes more suitable for smaller aircraft. “If we do it, we’ll do it this year,” Luu said, confirming VietJet was in talks with ATR, Bombardier and Embraer and plans to make a decision on regional aircraft this year. He also said the carrier has temporarily shelved plans to establish a third affiliate in Myanmar, and was instead looking at joint-venture opportunities in North Asia.
