Vietnam Airlines, the flag carrier of Vietnam, is aiming to broaden its footprint in the Indian market by adding more routes between India and Vietnam. In an exclusive interview with CNBC-TV18, Le Hong Ha, President & CEO, Vietnam Airlines, shared the airline’s expansion plans. “We commenced our operations in India in 2022 with services to New Delhi. We are now intensifying our focus on India by initiating wide-body aircraft operations. The Indian market holds immense potential, and the demand is substantial,” said Ha.
Currently, Vietnam Airlines operates 14 weekly flights connecting New Delhi, Mumbai, Hanoi, and Ho Chi Minh City. The airline also began direct flights to Mumbai in 2023. “We will introduce more routes linking new cities in both India and Vietnam. The Indian market’s potential is vast. From May 15, we deployed the A350 on the New Delhi route and plan to use wide-body aircraft for the Mumbai route as well,” Ha added.
Addressing the growing competition, Ha remarked, “At present, three major airlines operate flights between India and Vietnam. I emphasise that the Indian market is significant enough to accommodate four airlines. Once Air India launches direct flights to Vietnam, it will further stimulate traffic. Competition benefits the industry.”
Regarding investment plans, Ha stated, “Vietnam Airlines, as the national flag carrier, recognises the deep connections between India and Vietnam. We aim to boost traffic between the two countries by offering superior products and services to Indian passengers. The A350 will enhance service quality, and we are committed to investing in service and network expansion.”
Ha also highlighted the potential in the cargo segment. “The import and export trade between India and Vietnam exceeds USD 14 billion, presenting a significant opportunity for cargo operations. Currently, we use belly ops in the A321 for cargo. Introducing wide-body aircraft is the first step towards increasing cargo movement. We plan to deploy a freighter aircraft to India once we acquire one,” Ha explained.
Although the India operations are currently not profitable for Vietnam Airlines, Ha expressed optimism for the future. “At present, we are losing market share in India, but it is a long-term investment. We are dedicated to promoting traffic between India and Vietnam. In the coming years, we expect our Indian routes to become profitable,” Ha concluded.
Source: CNBC