Vietnam Airlines moves to join SkyTeam alliance

Dominique Patry, chairman of SkyTeam Steering Committee, addresses the news conference in Hanoi after the signing ceremony on Wednesday - Photo: Thanh Trung
HCMC, HANOI - Vietnam Airlines signed an agreement with SkyTeam on Wednesday in a move to join the global airline alliance, probably next year, enabling the national flag carrier to fly to more markets and provide more benefits to passengers.
Pham Ngoc Minh, general director of Vietnam Airlines, described the agreement the airline signed in Hanoi as important as it was the first step for the carrier to become a full member of SkyTeam, hopefully in 2010.
“The agreement confirms Vietnam Airlines’ position as a major airline in the region and a global reliable partner of SkyTeam in competing with other global airline alliances,” Minh said in a statement.
Minh added Vietnam Airlines would be able to provide passengers with thorough services in accordance with international standards of SkyTeam when the airline became a full member of the world’s second largest airline alliance after STAR Alliance.
Vietnam Airlines said in the statement that it was the only partner airline in Southeast Asia that SkyTeam had chosen to become its member.
Speaking to reporters after the signing on Wednesday, the air carrier’s deputy general director Duong Tri Thanh said joint operations, frequent flyer programs and airport services would be the three areas of most important cooperation among alliance members. Thanh said Vietnam Airlines had considered three air alliances over the past ten years before deciding to apply for SkyTeam membership.
Dominique Patry, chairman of SkyTeam Steering Committee, said Vietnam Airlines would give great support to the flight network of SkyTeam and help expand its presence, especially in Indochina.
“With wide flight coverage and services to more than five gateway airports of SkyTeam, Vietnam Airlines will be a strategic partner of SkyTeam,” said Patry, who is Air France’s vice president for international affairs and alliances.
He told reporters it often took airlines some two years to complete all admission formalities, but “I hope Vietnam Airlines will complete all formalities within 12 months.”
Vietnam Airlines now uses 50 aircraft of different types including Boeing 777s, Airbus A330s, A321s and A320s for its flights to 20 domestic destinations and 24 international destinations.
Despite the global economic turmoil, Vietnam Airlines last year posted a year-on-year revenue increase of 31.32% to more than VND26.6 trillion (over US$1.5 billion), including pre-tax profit of VND240 billion (some US$13.7 million).
The significant pre-tax profit marked a great achievement for Vietnam Airlines as this carrier incurred a loss of VND83 billion (more than US$4.7 million) in the first half of 2008.
Vietnam Airlines is looking to transport nearly 9.5 million passengers on its domestic and international flights this year, as against more than 8.8 million passengers last year.
Minh said earlier this year that 2009 would be a difficult year for the airline industry but the carrier would continue to improve competitiveness and kept following a long-term development strategy to become the second largest airline in the region after Singapore Airlines in the next seven to eight years.
Established nine years ago, SkyTeam now has 10 member airlines and three associate airlines including Air France-KLM, Continental Airlines, China Southern, Korean Air, and Northwest. These carriers with 2,500 airplanes now operate flights to 905 destinations in 169 countries and territories, transporting 462 million passengers a year.