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Vietnam Airlines (Vietnamese: Hãng Hàng không Quốc gia Việt Nam, lit. 'Vietnam National Airlines') is the flag carrier of Vietnam. The airline was founded in 1956 and later established as a state-owned enterprise in April 1989. Vietnam Airlines is headquartered in Long Biên District, Hanoi, with hubs at Noi Bai International Airport and Tan Son Nhat International Airport. The airline flies to 64 destinations in 17 countries, excluding codeshared services.


From its inception until the early 1990s, Vietnam Airlines was a minor carrier within the aviation industry as it was hampered by a variety of factors including the socio-economic and political situation of the country. With the government's normalization of relations with the United States, the airline was able to expand, improve its products and services, and modernize its ageing fleet. In 1996, the Vietnamese government brought together 20 service companies to form Vietnam Airlines Corporation, with the airline itself as the centrepiece. In 2010, the corporation was restructured into a limited liability company and renamed Vietnam Airlines Company Limited. A seven-seat management board, members of which are appointed by the Vietnamese Prime Minister, oversees the company.



As passenger transport constitutes its core activity, Vietnam Airlines plays a crucial role in the economic development of the country. It owns 100% of Vietnam Air Service Company – a regional airline in southern Vietnam and 70% of the low-cost carrier Pacific Airlines. In addition, the corporation earns revenue from airline catering and the maintenance and overhauling of aircraft through a number of its subsidiaries, including Vietnam Airlines Engineering Company and Vietnam Airlines Caterers. The company has also diversified its investments in the aircraft-leasing and airport ground-servicing industries, and is looking to manufacture aircraft components. It controls and operates a cargo division, Vietnam Airlines Cargo.


Vietnam Airlines became a member of SkyTeam in June 2010, making it the first Southeast Asian carrier to have joined that alliance. As of July 2016, the State's stake in Vietnam Airlines is 86.16%, All Nippon Airways holds 8.77%, as the parent company (ANA Holdings) has successfully purchased a cost of US$109 million, becoming a strategic shareholder of the national flag carrier.


Vietnam Airlines has its origins in January 1956 (1956-01), when it was established by the North Vietnamese government under the name Vietnam Civil Aviation following the nationalization of Gia Lam Airport. It was instituted after the government signed the Decree No. 666/TTg. The airline was created as part of the air force for civilian purposes with support from both the Soviet Union and China; initially, its fleet consisted of two Lisunov Li-2s that were later replaced by two Ilyushin Il-14 and three Aero Ae-45s. This was due to an embargo that prohibited the airline from leasing and/or buying American technology or components.



The airline's development and expansion was seriously hampered by the Vietnam War (1954–1975). Following the war, its first international destination was Beijing, followed by Vientiane in 1976. During that year, the airline was known as General Department of Civil Aviation in Vietnam, and began full operations; it carried around 21,000 passengers, one-third of whom were on international flights, and 3,000 tonnes (6,600,000 lb) of cargo. In 1978, another important destination of Vietnam Airlines was added, with flights offered to Bangkok. The late 1980s and early 1990s saw the expansion of the network to Hong Kong, Kuala Lumpur, Manila and Singapore.


In 1990, the company initiated discussions regarding the incorporation of Western-built aircraft into the fleet. Later that year, however, the carrier had to cancel the acquisition of two Airbus A310s due to their use of US-manufactured engines. By July 1991 (1991-07), the airline struck a wet-lease agreement with Dutch lessor TransAvia. The aircraft involved was a Boeing 737-300, that arrived in Vietnam Airlines' livery. However, the aircraft was returned after the U.S. State Department pressured the Dutch lessor to remove the aircraft from Vietnam. Subsequently, Vietnam Airlines organized a similar but more complicated deal with TEA Basle, who spent the rest of 1991 negotiating a deal with US authorities. Eventually, a solution stating that "[the Boeing 737] must be positioned outside Vietnam, with no logo or lettering of Vietnam Airlines. On these conditions, it could operate on behalf of Vietnam Airlines" was reached.: 26  In December 1991 (1991-12), Cathay Pacific and Vietnam Airlines agreed on a 50–50 joint venture to operate between Hong Kong and Vietnam, as the airline's Tupolev Tu-134 fleet did not meet Kai Tak Airport's noise restrictions.


In October 1992 (1992-10), the Boeing 737 was supplemented with an Airbus A310.: 26  However, a dispute with Bulgarian Jes Air over who should pay for the repairs after the aircraft sustained an engine failure led to its replacement with another A310 from GATX, also operated by Jes Air.: 26–27  A similar dispute with United Technologies encouraged the airline to switch from Airbus to Boeing. Hence, a Boeing 767-200ER, leased from Ansett Worldwide Aviation Services (AWAS), arrived in January 1993, and a Royal Brunei Airlines Boeing 767-300ER, arrived the following year. In October 1993, the first Airbus A320-200 was incorporated over a two-year wet-lease contract with Air France. Vietnam Airlines by now had started discussions with Air France about a partnership, and the French carrier agreed to lease its Airbuses to Vietnam Airlines, and also to provide customer support and pilot/crew training.: 31  By that time the route network had further expanded internationally, seeing the incorporation of destinations such as Paris, Tokyo, Seoul, Taipei, Sydney, and Melbourne. In 1993, the airline carried 1.06 million passengers, 418,000 of whom were on international flights.



The airline became the flag carrier of Vietnam in 1993, after having completed a restructuring programme that was started four years earlier. In that year, the airline split from the Civil Aviation Administration of Vietnam (CAAV) and became a state enterprise.: 30  The move was similar to the reorganization of the Chinese CAAC Airlines into several regional airlines in 1987. Despite the fact that the airline gained some independence from the CAAV, it was still known as Civil Aviation Administration of Vietnam within the 1993–1996 period.


In February 1994 (1994-02), US President Bill Clinton lifted the trade embargo to allow Vietnam Airlines the ability to acquire Western-built aircraft.: 26  Consequently, Vietnam Airlines announced in April of the same year that it would be phasing out its inefficient Soviet planes. By April 1995 (1995-04), the fleet consisted of nine Airbus A320s (all of them leased from Air France), 11 Antonov An-24s, four ATR72s, two Boeing 707-300s, three Ilyushin Il-18s, nine Tupolev Tu-134s and three Yakovlev Yak-40s;[nb 1] at this time the route network comprised 14 domestic destinations (including Ban Me Thuot, Da Nang, Dien Bien Phu, Hue, Nha Trang, Phu Quoc and Pleiku) and 16 international destinations (including Bangkok, Hong Kong, Kuala Lumpur and Singapore).: 80  On 27 May 1995 (1995-05-27), the airline, along with a number of other aviation-related businesses, were incorporated to establish Vietnam Airlines Corporation. Two Fokker 70s were purchased in mid-1995 for US$50 million; they were aimed at partly replacing the Tu-134 fleet on domestic routes as well as at serving as VIP transport. In December 1995 (1995-12), discussions with GECAS for the lease of three additional, second-hand Boeing 767-300ERs were under way; these ex-Continental Airlines aircraft would act as a replacement for wet-leased Boeing 767 aircraft (three -300ERs and one -200ER leased from AWAS and Royal Brunei) in the fleet.


In September 1996 (1996-09), Vietnam Airlines started offering business class services and in 1999, the airline launched its frequent-flyer program, Golden Lotus Plus; During 1996, Vietnam Airlines looked for aircraft which would substitute the A320s wet-leased from Air France when the deal was over. Apart from acquiring further A320s, the airline considered Boeing 737s and McDonnell Douglas MD-90s. In February 1996 (1996-02), GECAS delivered the first of three Boeing 767-300ER to the carrier, on dry-lease for five years. In October the same year, two Boeing 767-300ERs and a Boeing 767-200, on lease from AWAS and Royal Brunei Airlines, respectively, were returned to the lessors, but in early 1997 another Boeing 767-300ER was phased in on a one-year lease from AWAS. With its freedom to operate Western-built aircraft, Vietnam Airlines considered the acquisition of long-haul aircraft to better service Vietnamese living overseas. The Airbus A340, Boeing 747 and the McDonnell Douglas MD-11 were topics of discussion. Meanwhile, two Fokker 70s were acquired in May and July to replace the twelve Tupolev Tu-134s.: 31  On 3 September 1997, the crash of a Tupolev Tu-134B, on approach to Phnom Penh's Pochentong Airport in bad weather, resulted in more than 60 fatalities.



A new livery was introduced in early 1998, initially unveiled on a Boeing 767.
In December 2001 (2001-12), Vietnam Airlines signed a historic agreement with Boeing for the acquisition of its first ever US-built aircraft, signalling the start of trade under the Bilateral Trade Agreement between the two countries. The deal involved four Boeing 777-200ERs. The transaction was valued at US$680 million; the first aircraft was initially scheduled for delivery in 2003. These four aircraft, along with six others of the same type that are leased from International Lease Finance Corporation (ILFC), are the flagships of the airline, and serve on medium and long-haul routes, respectively.[needs update] During that year, the airline carried 3.4 million passengers, 1.9 million of whom were on domestic flights; flights to Beijing resumed and services to Kunming were launched. During 2002, Vietnam Airlines considered a lease offer from Airbus for two Airbus A340-300s. On 4 September 2003, a landmark ceremony celebrated the airline's receipt of its first Boeing 777-200ER purchased outright from Boeing. On 28 October, the airline decided to move its operations in Moscow from Sheremetyevo International Airport to Domodedovo International Airport.


In June 2005 (2005-06), Vietnam Airlines ordered four Boeing 787-8s. Twelve additional 787-8s were ordered in late 2007, some of them to be directly acquired from the company, and the rest to be purchased by the carrier's subsidiary Vietnam Aircraft Leasing Company (VALC). These new aircraft were to allow Vietnam Airlines to expand its network and replace some leased aircraft. Regarding the delays from Boeing, CEO Pham Ngoc Minh remarked in September 2009 (2009-09), "We are not happy about the constant delays. It affects our business plan. We expected to get our planes in 2009, then 2010, and now nobody can confirm to us which is the exact delivery date. I can be patient but it gives us a lot of headaches." In 2010 the airline switched its Boeing 787 order from the –8 to the –9 model, stating that 787-8s did not meet all the requirements Boeing initially promised; it is expected the airline will receive its first aircraft of the type in 2015.


On 20 June 2005, the airline launched direct services to Frankfurt after having discontinued services to Berlin. It came after the 2004–2005 period when travel between the two countries soared 70%. The following year, Vietnam Airlines was admitted into IATA. As part of the move, Vietnam Airlines had to meet the association's IOSA safety standards.



According to a number of newspaper reports in 2007, the Vietnamese government planned to partly privatize Vietnam Airlines. In the plan, the government considered selling 20–30% of the airline's stake to outsiders, with the government holding the balance. This was a small part of a bigger proposal by the government to privatize its state-owned companies, due to be completed by 2010. Vietnam authorized the plan the following year; however, the plan was not carried out as the airline missed its deadline scheduled by the government, which was arranged for 2010, due to the Global Financial Crisis.


On 1 October 2007, the airline and VALC signed a memorandum of understanding for the purchase of ten Airbus A350 XWBs, and 20 additional Airbus A321s. The Airbus A350s will supplement the Boeing 787s already ordered by the airline. This single order will result in Vietnam Airlines becoming one of the largest Airbus operators in Asia. The two companies also ordered five extra ATR 72-500s in December 2007 (2007-12).


Vietnam was chosen as the host of Miss World's 60th contest in 2008. As the country's national airline, Vietnam Airlines was selected as the sponsoring airline for the beauty pageant. Therefore, it was tasked the job of managing all the transport matters for the contest, to be carried out during September and October, just before the beginning of the competition. However, it was later decided to carry out the event in Sanya, China, following speculations of Vietnam withdrawing. In August 2008 (2008-08), Vietnam Airlines added Nagoya, the airline's fourth point served in Japan besides Fukuoka, Osaka and Tokyo, to the route network.



In 2009, Vietnam Airlines and the Government of Cambodia established a joint-venture, having 49% and 51% stockholding, respectively, with the goal of boosting tourism in Cambodia. The joint-venture was a new Cambodian national airline named Cambodia Angkor Air, which started flying in July the same year, using ATR-72 aircraft; an Airbus A321 joined the fleet in September. Also in 2009, the carrier signed a deal for another 16 Airbus A321s plus two Airbus A350s, during the Paris Air Show. In addition, Vietnam Airlines launched a new bilingual website in October to simplify bookings and adopted a new passenger service system designed by IT provider Sabre Airline Solutions.


On 26 August 2010, the airline teamed up with Boeing during the unveiling of its interior modernization programme to increase passenger comfort. From late September to early October, Vietnam Airlines discounted up to 85% of its 90,000 fares to celebrate Thang Long-Hanoi's 1000th anniversary. In November 2010, the airline awarded Honeywell a US$100 million contract to retrofit the Airbus A321s' aircraft flight systems, which is calculated to save Vietnam Airlines US$10,000 per aircraft per year.




Portrait photograph of man wearing black suit sitting down at conference table.


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