1. Vietnam Airlines’s Company background: 1.1. Introduction:
Vietnam Airlines is the national Airlines in Vietnam that is flag carrier of Vietnam, and
one of the largest airlines in the country. Vietnam Airlines was founded in January 1956,
shortly after the Government of Vietnam established the Civil Aviation Authority,
officially launching the country's civil aviation industry.
For over 20 years, Vietnam Airlines is developing to become better and affirming its
positions as a national airline with a significant regional and global presence.
1.2. History of Vietnam Airlines:
A significant turning point in the development and efficient operation of numerous
international routes to Asian nations like Laos, Cambodia, China, Thailand, the
Philippines, Malaysia, and Singapore occurred between 1976 and 1980. Vietnam's civil
aviation joined the International Civil Aviation Organization (ICAO) at the conclusion of the time frame.
In April 1993, the Flag Carrier of Vietnam (Vietnam Airlines) officially became a state-
owned air transport enterprise. On May 27, 1995, Vietnam Aviation Corporation was
established on the basis of merging 20 air service entities with Vietnam Airlines as the core enterprise.
In September 1996, Vietnam Airlines started offering business class services and in 1999,
the airline launched its frequent-flyer program
In 2002, Vietnam Airline introduces the new logo - Golden Lotus which is officially logo
until now, presenting outstanding service quality improvements, flight network expansion, and fleet upgrades.
In 2003, the national airlines in Vietnam receiving and operating the first Boeing 777, the
modern aircraft, starting the fleet modernization program.
2006: Becoming an official member of IATA.
2010: Officially becoming the 10th member of the Sky Team Alliance which allows it to
offer its passengers access to a global network of routes.
2014: Initial Public Offering (IPO) at Ho Chi Minh City Stock Exchange.
Apr. 2015: Officially operating under join stock company model from April 1, 2015.
Jul. 2015: Vietnam Airlines became the first airline in Asia and the second in the word to
receive and successfully operate the next-generation aircraft Airbus A350-900; at the
same time, the company introduced its new brand identity.
Jul. 2016: Officially certified as a 4-star international airline according to Skytrax
standards. Jul. 2016: Selected ANA Holdings INC (Japan) as a strategic Investor.
Jan. 2017: Vietnam Airlines' securities were officially listed on the UPCoM stock
exchange with the stock symbol named HVN; its capitalization value was at the top of the market.
Dec. 2017: VNA welcomed the 200 millionth passenger after 20 years of operation and
had 1.5 million Golden Lotus members.
Jul. 2018: Awarded the Sky trax certificate for the 3rd consecutive time as a 4-star
international airline (2016,2017,2018).
Nov. 2018: VNA welcomed the first A321 NEO; its state ownership representative was
transferred from the Ministry of Transport to the State Capital Management Committee.
May 2019: VNA listed its shares and trade Ho Chi Minh Stock Exchange (HOSE).
Aug. 2019: VNA received the first 787-10 Dreamliner - the largest wide-body aircraft in the world.
Jul. 2020: Awarded the highest level, 5-Star, for COVID-19 Airline Safety Rating from
Skytrax.- Nov. 2021: VND launched scheduled direct flights between Vietnam and the
US. Nov. 2022: The 8th National Award Council of Foreign Relation Communication
awarded the second prize for the flight safety instruction film "The Echo of Harmony"
and the Consolation Prize for the MV "Come on" of Vietnam Airlines in the video
category.Dec. 2022: VNA launched the Million Miler program with exclusive service
improvements to honor premium members.
1.3. Vietnam Airlines’s destination:
Vietnam Airlines always want to bring the bests experience and safety to the passengers.
Its not about traveling, it’s also back to home, back to family, its about cultural of Vietnam. 1.4. The organization
Vietnam Airlines leader ship’s have 3 main character. Firstly, the chair main of the board,
who are going to make decisions and run the whole company. Secondly, it is the supervisor
that going to take all of information about the other, to wirte dow as a magazine, and the last one was CEO. 1.5. About financial:
The Government of the Socialist Republic of Vietnam owns Vietnam Airlines, which also
has a subsidiary organization called VASCO Air Service Company. Prior to 2005, the
airline served as a proxy for the Vietnamese government and held up to 86% of the shares
of the joint stock airline Jetstar Pacific. The subsidiary VASCO will eventually be split off into a distinct airline.
The financial report in 2019, the profit slightly decrease about 63 million dollars with the
revenue of 4.2 million dollars. In other side, the net income rose about 85 thoundsan dollars
The revenue has no sign to stop decrease in 2020, down from 4.2 million dollars to 1.7
millions dollars. The main reason was Covid-19 crisis, that was destroy the economy not
even Vietnam but also around the world. The amount of Passengers deeply decrease that
make Vietnam Airlines has a big trouble. The net income has already decrease more than a half from the past year.
The Covid 19 still strongly affected to the tourism industrial. The passenger also went
down, the revenue decreased 30% with the past year.
Profit after tax of Vietnam Airlines
Vietnam Airlines generated a loss of approximately 13 trillion VND, indicating an
increase in losses since the COVID-19 epidemic began at the beginning of 2020..
Vietnam Airlines' net revenue had been increasing for years, but declined dramatically
due to the impact of the COVID-19 pandemic.
The suggested plan has no growth in 2021 because the aviation market has yet to
demonstrate any signs of revival. As a result, Vietnam Airlines anticipates a consolidated
loss of 13,278 billion VND, an increase of about 30% from the implementation in 2020,
while the consolidated revenue target would decline by 11.6% compared to the
implementation in 2020 to close to 37,400 billion VND.