2022 has ended, and the new chapter of 2023 is bringing fresh hopes for a brighter and better future. In the run-up to the Lunar New Year of the Cat, Mr. Dang Ngoc Hoa – Chairman of the Board of Directors of Vietnam Airlines – shared some insights with Heritage Magazine.

2022 has passed, marking many significant milestones in the aviation industry after the Covid-19 pandemic. How do you rate Vietnam Airlines’ performance in the past year?

Chairman Dang Ngoc Hoa: While many challenges remain to be overcome during the post-pandemic recovery process, 2022 was a prosperous year for Vietnam and the aviation industry in particular, including Vietnam Airlines.

After two years of being impacted by the pandemic, the Group has best served passengers’ travel needs and ensured the absolute safety of VIP flights serving leaders of the Party, State, and National Assembly. In addition, we maintained and improved service quality in accordance with international standards; kept technical and flight operations stable; and continued to work on major programs and projects. At the same time, Vietnam Airlines was well-prepared for market recovery with labor training, technical maintenance, system restructuring to increase efficiency, and product research. We also took advantage of opportunities to increase revenues during the market’s recovery.

In 2022, Vietnam Airlines reaffirmed its position as Vietnam’s National Flag Carrier in domestic and international markets by receiving prestigious awards, including Asia’s Leading Airline – Economy class, Asia’s Leading Airline Brand, Asia’s Best MICE Airline, and first place among the top Vietnamese brands – Most Recognized brands in 2022.

Based on these results, Vietnam Airlines has achieved all the goals and tasks we set out for 2022.

Despite these efforts, the market’s strong recovery, and busy flight schedules, is it true that Vietnam Airlines’ revenues still fell short of expectations?

2022 was only the beginning of the recovery process. Experts from IATA have estimated that it will take until 2025 for the global aviation industry to fully regain its pre-pandemic strengths. The drastic, unprecedented, and unforeseeable impacts of 2020-2021 left heavy consequences on Vietnam Airlines’ financial standing. Before the pandemic, Vietnam Airlines was a top corporation with strong financial potential, and healthy year-on-year revenue and profit growth. The outbreak of Covid-19 brought the global aviation industry to its knees; Vietnam Airlines also suffered unavoidable losses. However, we proactively cut costs to a minimum, reorganized operations, sought every opportunity to increase revenues, restructured the corporation, and improved our management capacity. All efforts were made to minimize losses and avoid the risk of bankruptcy.

It should be noted that, after the Covid-19 pandemic, the aviation market has experienced a strong but uneven recovery between domestic and international markets. Currently, domestic flights have bounced back to levels higher than those of 2019, while some international routes such as those to Japan, Korea, Australia, France, and the UK, have only partially recovered. However, several routes, such as those to Russia and China, which accounted for a healthy proportion of Vietnam Airlines’ revenues, have not yet restarted. Meanwhile, costs of fuel and exchange rates, which account for the most significant proportion of Vietnam Airlines’ cost structure, are surging while revenue growth has not kept pace. All of these objective causes were beyond the Group’s control and these risks are forecasted to persist in 2023.

With the support of the Government and the National Assembly, our customers’ trust, and tremendous efforts from our entire workforce, Vietnam Airlines has exceeded our business targets for 2022. The financial situation improved with quarter-to-quarter revenue growth, and our subsidiary companies were making profits. Although the numbers are still below zero, these results indicate that the aviation industry’s recovery is going strong, and Vietnam Airlines has caught up with the tide.

The world’s economy and politics are becoming increasingly volatile, while the aviation industry is heavily reliant on external factors. In such circumstances, what can Vietnam Airlines do to be more proactive and affirm its position as the National Flag Carrier?

Vietnam Airlines places customers at the heart of its business, so we’ve always identified flight safety and service quality as key directions because these are the core needs of customers that any airline should meet. However, it is easier said than done. Not all airlines can leverage these basic criteria to gain a competitive advantage and be outstanding.

Vietnam Airlines has invested heavily in safety and is now the only airline in Vietnam that fully meets the strict safety standards of Europe and the US. We are  one of the few airlines in the world to achieve the ETOP240 extended range certificate. In terms of service, Vietnam Airlines is proud to maintain international 4-star service quality, and with our upgrade plans, we aim to become a 5-star airline in the near future. These results were only made possible by the entire Group’s efforts thanks to a long-term vision and great determination. These values also create advantages and differentiate Vietnam Airlines from other brands in a fiercely competitive market.

What are your expectations for the Vietnam Airlines Group and your key message to customers in 2023?

We are entering the Year of the Cat with many opportunities and challenges. On behalf of the Group, I’d like to express our deepest gratitude to our esteemed customers, who have always supported the National Flag Carrier. We are committed to constantly enhancing passengers’ travel experiences with the latest services and technologies, plus absolute safety.

On this occasion, I would like to wish all passengers a prosperous and successful new year. May your flights with Vietnam Airlines bring many happy memories.