Vietnam Airlines is the national carrier of Vietnam and a symbol of the country’s aviation industry. It serves millions of customers, employs thousands of people, and contributes billions to Vietnam’s economy. Vietnam Airlines is also one of Asia’s fastest-growing airlines, expanding from its humble beginnings in the 1950s to earning a 4-star international rating by 2016. Today, it stands as one of the largest and wealthiest companies in Vietnam. But how big is Vietnam Airlines? How does it compare to other regional airlines? And can it become a 5-star airline in the future? Let’s take a closer look.
Vietnam Airlines’ story started in January 1956, when the Vietnamese government established Vietnam Civil Aviation. The fleet was small at first, consisting of only five propeller aircraft: the IL-14, AN-2, and Aero-45. The first domestic flight took off in September 1956, marking the beginning of Vietnam’s civil aviation journey.
A turning point came after the end of the Vietnam War in April 1975. During this time, Vietnam Civil Aviation, later known as the General Department of Civil Aviation in Vietnam, expanded quickly. International flights to nearby countries such as China, Thailand, and Singapore were introduced. By 1980, Vietnam Civil Aviation had joined the International Civil Aviation Organization (ICAO), integrating it into the global aviation community.
In 1993, Vietnam Airlines officially became the national flag carrier after restructuring. In 1995, 20 air service entities merged to form the Vietnam Aviation Corporation, setting the foundation for Vietnam Airlines to become a major player in the aviation industry.
Over the years, Vietnam Airlines achieved many milestones. In 2002, they introduced the Golden Lotus logo, symbolizing improved service and modernizing their fleet. The airline acquired its first Boeing 777 in 2003, and in 2006, it joined the International Air Transport Association (IATA). By 2010, Vietnam Airlines had become the 10th member of the SkyTeam Alliance. In 2014, they went public on the Ho Chi Minh City Stock Exchange, becoming a joint-stock company by 2015. That same year, they received their first Airbus A350-900 and introduced a new brand identity.
In 2016, Skytrax certified Vietnam Airlines as a 4-star airline. The airline also formed a strategic partnership with ANA Holdings Inc., listed its shares on the UPCoM stock exchange, and celebrated its 200 millionth passenger in 2017. They continued to grow, adding A321 NEO aircraft in 2018 and listing shares on the Ho Chi Minh Stock Exchange in 2019. In 2020, Vietnam Airlines received the 5-star COVID-19 Airline Safety Rating from Skytrax and launched direct flights between Vietnam and the US in 2021.
Looking ahead, Vietnam Airlines aspires to become a 5-star global airline. The airline’s fleet has grown to nearly 100 aircraft, mainly Airbus and Boeing models. Through its SkyTeam partners, Vietnam Airlines connects 1,150 destinations, offering passengers access to every continent.
Vietnam Airlines has evolved from a small domestic operator into a major international carrier. Now let’s explore how big the company is in terms of fleet size, finances, and subsidiaries.
As of December 31, 2023, Vietnam Airlines operated a diverse fleet. This includes 14 A350-900 aircraft, 11 B787-9 planes, 4 larger B787-10 models, 46 A321CEO aircraft for medium-haul routes, 20 A321NEO planes, and 6 ATR72-500 turbo-propeller aircraft for short regional routes. In September 2023, Vietnam Airlines signed a $7.8 billion deal with Boeing to acquire 50 737 MAX aircraft, one of the largest aviation deals in Vietnam’s history.
Financially, Vietnam Airlines had revenues of around 92 trillion Vietnamese dong, or $3.8 billion, in 2023. While not as large as Delta Airlines, which earned over $59 billion, Vietnam Airlines compares favorably to regional peers. For example, Malaysia’s AirAsia earned $3.72 billion, while Thailand’s Bangkok Airways earned $600 million. Singapore Airlines, a much larger company, earned $14.11 billion, similar to Japan’s ANA Holdings with $14.01 billion in revenue.
In 2023, Vietnam Airlines operated 150,200 flights and carried over 24.1 million passengers and 230,000 tons of cargo and mail, holding a market share of 33.6%.
Vietnam Airlines also has several subsidiaries. Pacific Airlines, its low-cost subsidiary, was founded in 1991. After a brief rebranding as Jetstar Pacific under Qantas ownership, it returned to the Vietnam Airlines Group in 2020 as Pacific Airlines. Another subsidiary is Cambodia Angkor Air, in which Vietnam Airlines holds a 14% stake.
Ownership of Vietnam Airlines is primarily government-controlled. The Commission for the Management of State Capital at Enterprises owns 55.2%, while the State Capital Investment Corporation holds 31.14%. ANA Holdings, a Japanese company, also owns 5.62%, a stake acquired in 2016 as part of a partnership to enhance both airlines’ services and connectivity.
So, just how big is Vietnam Airlines? It’s a major player in both Vietnam and the broader Asian aviation market, with a growing fleet, strong financials, and key strategic partnerships.