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Tag: Vietravel

  • Vietravel to Divest Entire Stake from Vietravel Airlines by Year’s End: An Insider Look

    Vietravel to Divest Entire Stake from Vietravel Airlines by Year’s End: An Insider Look

    Vietravel, a tourism company, has announced its intent to divest its 14.1% shareholding in Vietravel Airlines by the end of the current year. The details of the prospective investor are yet to be disclosed.

    Background of Vietravel Airlines

    Established in 2020, Vietravel Airlines commenced its journey with a registered capital of $26.5 million USD. The airline began commercial operations in 2021, thereby becoming the sixth airline of Vietnam and the third to be privately owned.

    Major Stakeholders

    The majority of the airline, 75% to be precise, is under the ownership of businesses run by Do Quang Hien, the founder and chairman of the T&T Group conglomerate. Hien acquired his stakes in the airline towards the end of last year. His son, Do Vinh Quang, was appointed chairman a few months after the acquisition.

    Growth and Expansion Plans

    Since Hien’s takeover, Vietravel Airlines has been on a growth trajectory. Its charter capital has been expanded to a staggering VND2.6 trillion. The airline primarily operates across the Hanoi–Da Nang–Ho Chi Minh City routes, also serving popular tourist spots like Phu Quoc and Nha Trang.

    The airline has set a target to expand its fleet to a minimum of 10 aircraft by the end of this year. Negotiations are underway with aircraft manufacturers and international airlines to achieve this goal.

    Questions & Answers

    What is the current ownership structure of Vietravel Airlines?
    75% of the airline is owned by businesses managed by Do Quang Hien, founder and chairman of T&T Group.

    What are Vietravel Airlines’ primary routes?
    The airline mainly operates on the Hanoi–Da Nang–Ho Chi Minh City routes and also serves tourist destinations like Phu Quoc and Nha Trang.

    What are Vietravel Airlines’ expansion plans for the current year?
    The airline plans to expand its fleet to at least 10 aircraft by the end of this year.

  • Vietravel Airlines appoints new CEO

    Vietravel Airlines appoints new CEO

    Vietravel Airlines has appointed Dao Duc Vu, who has 35 years of experience in the aviation industry, as its new CEO.

    Vu took office on Sept. 4 after his predecessor Nguyen Minh Hai resigned for personal reasons, according to a company statement Tuesday.

    Vu has held various senior leadership positions at Cambodia Angkor Air, Vietjet, and Bamboo Airways.

    From 2020 to 2022 he served as deputy CEO and was primarily responsible for managing, supervising flight operations, and training flight crews at Vietravel Airlines.

    The airline’s chairman Nguyen Quoc Ky said that that Vu’s appointment is crucial as the company embarks on new stages of development, with ambitious targets set by the board of directors.

    Vu is expected to play a key role in expanding the airline’s route network.

    Vietravel Airlines began flying in January 2021 with a focus on offering passengers a complete aviation and tourism experience by taking advantage of tourism giant Vietravel’s long-established ecosystem.

    The airline, which operates three aircraft, posted its first quarterly profit of VND10 billion in the January-March period.

  • Vietravel Airlines seeks to lease three more aircraft from Cambodian carrier

    Vietravel Airlines seeks to lease three more aircraft from Cambodian carrier

    Vietravel Airlines, which has leased one aircraft from Cambodia Airways, has asked the carrier for three more this year.

    In June, Vietravel Airlines took delivery of an Airbus A319 to increase its fleet to four. It will get an Airbus A320 from the Cambodian carrier next month.

    If it can lease three more planes from Cambodia Airways before the end of this year, it will expand its network to South Korea and Japan, and better serve the travel boom during the Lunar New Year holidays early next year.

    The deal will also help start more services to tourist destinations in Vietnam and Cambodia.

    The carrier, launched in early 2021, hopes to increase its fleet to 25 aircraft by 2025 and to 50 by 2030.

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  • Vietravel Airlines plans 6-fold increase in charter capital by 2025

    Vietravel Airlines plans 6-fold increase in charter capital by 2025

    Rookie carrier Vietravel Airlines wants to gradually increase its charter capital nearly sixfold to VND7.64 trillion ($323.66 million) by 2025.

    The airline recently made this proposal to the government after two years of operating with a charter capital of VND1.3 trillion. It owns three narrow-body Airbus A321 jets.

    Viettravel made this proposal to boost development and enlarge its fleet, Chairman Nguyen Quoc Ky said.

    “Investing in fleet expansion is important for a new airline to survive and grow,” said Ky. “Only with a large fleet can we make profits.”

    For the last two years Vietravel Airlines has not been profitable but it expects that with a larger fleet it can take advantage of an expected surge in demand after Covid-19.

    The capital increase will come from a combination of shareholder investment, selling stakes to other investors, and financial tools.

    Shareholders of Vietravel Airlines plan to invest an additional VND700 billion by 2025, bringing their total investment to VND2 trillion.

    The airline also plans to increase its charter capital to VND8.25 trillion by 2030.

    Viettravel projects that by 2030, if business is favorable, it could record a VND2.2 trillion in accumulated profit which it could use it to pump up its capital.

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  • Vietravel sells majority stake in airline

    Vietravel sells majority stake in airline

    Tourism company Vietravel has sold a 55.58 percent stake in Vietravel Airlines to an unspecified investor as it seeks more funding amid Covid financial pressures.

    “Vietravel is no longer the parent company of Vietravel Airlines,” it stated recently.

    In a filing last month, Vietravel revealed it held a 99.5 percent stake in the carrier.

    Chairman of the leading tourism firm Nguyen Quoc Ky said in early May that selling a stake in Vietravel Airlines was part of a plan to restructure Vietravel into a holding company.

    He called for investors to fund the airline.

    As the airline only began to operate this year, it is still recording losses, which could affect Vietravel’s business figures, which are also low due to Covid-19, the company stated.

    Vietravel posted a loss of VND293.3 billion ($12.78 million) in the first half this year, tripling year-on-year.

    Its stock is limited to trading on Fridays due to its delay in publishing results.

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  • Vietravel loss triples in year’s first half

    Vietravel loss triples in year’s first half

    Leading tourism company Vietravel, which has only now published its first-half earnings report, saw losses triple year-on-year to VND293.3 billion ($12.75 million) due to Covid-19 travel restrictions.

    Revenues were down by nearly half to VND545 billion while costs rose 42 percent to VND65.6 billion.

    Its carrier, Vietravel Airlines, recently resumed operations after being grounded for three months, and plans its first flight on Dec. 19.

    Vietravel’s stock is limited to trading on Fridays due to its delay in publishing its results.

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  • Vietravel Airlines to resume domestic flights

    Vietravel Airlines to resume domestic flights

    Vietravel Airlines will reopen domestic flight ticket sales next Monday to tap year-end travel demands, after remaining grounded for about three months owing to pandemic restrictions.

    The carrier, which belongs to leading tourism company Vietravel, announced it will reopen ticket sales from 9 a.m. Monday, with the first flight taking off next Thursday.

    The flights will depart to and from Hanoi, Ho Chi Minh City, and beach tourist hotspots such as Da Nang, Nha Trang, Phu Quoc and Quy Nhon.

    The company said it will gradually increase its flight frequency from now to the end of the month to meet higher travel demand during the year-end peak season, including the upcoming Tet (Lunar New Year) holiday two months from now.

    Vietravel Airlines was launched at the end of Dec. 2020 and was one of the airlines that allowed to operate amid the turbulence created by the pandemic.

    After about half a year of operation, the carrier had to reduce its frequency and also closed operations since late August due to Covid-19 resurgence. It resumed business on Oct. 18.

    According to the new restructuring plan, Vietravel plans to operate as a holding company instead of engaging in operating activity itself.

    The company has invested additional capital in the carrier this year, raising its total investment from VND700 billion (over $30 million) to VND1.3 trillion (over $56 million) for the 2021-2025 period.

    The Civil Aviation Authority of Vietnam has said that domestic carriers will increase flight frequency in the coming time.

    Budget carrier Vietjet Air has increased its frequency to six flights a day on each of the Hanoi-HCMC, Hanoi-Da Nang, and Da Nang-HCMC routes.

    Another budget carrier, Bamboo Airways, will increase its frequency to 4-5 daily flights on the Hanoi-HCMC route from mid-December.

    National flag carrier Vietnam Airlines will operate about 140 flights per day on nearly 40 domestic routes. On the Hanoi – HCMC route, Vietnam Airlines operates five flights per day and its affiliate Pacific Airlines flies two flights per day. From Dec. 15, each airline will increase frequency on this route with one more flight per day.

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  • Vietravel invests $25.8 mln in its carrier

    Vietravel invests $25.8 mln in its carrier

    Tourism company Vietravel has decided to invest an additional VND593.5 billion ($25.8 million) in Vietravel Airlines this year.

    The additional capital lifts its total investment in the new carrier to nearly VND1.3 trillion.

    Based at the Phu Bai International Airport in the central province of Thua Thien Hue, Vietravel Airlines was licensed in April 2020 with a charter capital of VND700 billion.

    Early this year, it began operating flights on several domestic routes with three aircraft and is not expected to break even for at least a few years.

    The company’s operations have been hit by the Covid-19 pandemic over the past two years. It resumed business on Oct. 18.

    It has reported losses of VND90 billion in 2020, twice the profits it earned in 2019, but is targeting pre-tax profits of VND10 billion this year.

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  • Vietravel eyes stake sale in new airline

    Vietravel eyes stake sale in new airline

    Vietravel is seeking to sell an unspecified stake in its new airline which began flying earlier this year.

    The travel giant will seek shareholders’ approval at the annual general meeting at the end of this month to sell the stake. Vietravel Airlines is wholly owned by Vietravel.

    It began operating on several domestic routes amid the Covid-19 pandemic with three aircraft and is not expected to break even for at least a few years.

    Last year Vietravel reported a loss of VND90 billion ($3.9 million), twice the profit it earned in 2019.

    It made a loss of VND70 billion in the first quarter of this year.

    But it targets a pre-tax profit of VND10 billion this year.

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  • Vietravel posts $3 mln loss in Q1

    Vietravel posts $3 mln loss in Q1

    Tourism company Vietravel has already posted a loss of VND72.8 billion ($3.15 million) this year, or 81 percent of the loss it suffered in the whole of last year.

    Revenues fell nearly 65 percent to VND277 billion as the Covid-19 outbreaks in the first quarter hit travel.

    Its accumulated losses as of the end of March were over VND102 billion, or higher than its equity.

    The company targets an increase of 411 percent in revenue to VND6.24 trillion this year and a pre-tax profit of VND10 billion.

    In the first quarter it spent nearly VND59 billion on its new carrier, Vietravel Airlines, which began operations at the end of last year.

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  • Vietravel Airlines to start flying next Monday

    Vietravel Airlines to start flying next Monday

    Vietravel Airlines is scheduled to make its maiden flight on January 25, and began ticket sales on Tuesday, its CEO, Vu Duc Bien, said.

    Vietnam’s newest carrier will operate one or two flights a day each from HCMC and Hanoi to major tourist destinations like Nha Trang, Phu Quoc, Da Nang, and Hue.

    It has a fleet of two Airbus A321CEO aircraft and a third is expected to arrive on January 21 to meet the increased travel demand during the Lunar New Year Tet in mid-February.

    The carrier hopes to break even in its second year of operations.

    Vietravel Airlines has hired some 200 pilots and flight attendants and is looking to expand its fleet to 30 to prepare for international operations, flying to Southeast Asia, especially Thailand, the Middle East, and Northeast Asia, markets that Vietravel, the travel company that owns it, serves.

    It is the sixth carrier in what is a fiercely competitive aviation market after Vietnam Airlines, Vietjet, Jetstar Pacific, Vietnam Air Services Company, and Bamboo Airways.

  • Vietnamese travel agency intends to invest in sixth airline: CEO

    Vietnamese travel agency intends to invest in sixth airline: CEO

    Vietravel is nurturing a plan to launch its own airline to meet the demand that it predicts will keep rising in the future. The company’s CEO Nguyen Quoc Ky said the domestic aviation market is still “full of potential.” With a population of more than 100 million and the number of foreign visitors rising steadily year after year, hitting the highest ever at 15.5 million last year, it is still modest for Vietnam to have only five airlines, he said recently.

    Vietravel wants to have its airline headquartered in the central town of Hue, he added.

    “The plan of Vietravel will help create more new flight routes to and from Hue, and thus connect the city with more tourists,” said Nguyen Van Phuc, deputy director of Thua Thien – Hue Province, home to the imperial town of Hue.

    This will also get along with a plan to upgrade Phu Bai International Airport in Hue to raise its annual capacity from 1.5 million passengers to 5 million.

    Vietravel has taken the first steps into the airline industry through organizing charter flights with its partners.

    For the past two years, it has operated around 300 charter flights both domestically and internationally each year.

    Vietnam’s newest airline, Bamboo Airway, recently completed its maiden flight.

    The four other carriers currently in Vietnam are Vietnam Airlines, Vietjet Air, Jetstar Pacific, and VASCO.

    Together, the four of them transport more than 50 million passengers last year, up 14 percent against 2017, according to the Civil Aviation Authority of Vietnam.

    The number of passengers through Vietnam airports during the year increased 12.9 percent to 106 million passengers.

    is nurturing a plan to launch its own airline to meet the demand that it predicts will keep rising in the future. The company’s CEO Nguyen Quoc Ky said the domestic aviation market is still “full of potential.” With a population of more than 100 million and the number of foreign visitors rising steadily year after year, hitting the highest ever at 15.5 million last year, it is still modest for Vietnam to have only five airlines, he said recently.

    Vietravel wants to have its airline headquartered in the central town of Hue, he added.

    “The plan of Vietravel will help create more new flight routes to and from Hue, and thus connect the city with more tourists,” said Nguyen Van Phuc, deputy director of Thua Thien – Hue Province, home to the imperial town of Hue.

    This will also get along with a plan to upgrade Phu Bai International Airport in Hue to raise its annual capacity from 1.5 million passengers to 5 million.

    Vietravel has taken the first steps into the airline industry through organizing charter flights with its partners.

    For the past two years, it has operated around 300 charter flights both domestically and internationally each year.

    Vietnam’s newest airline, Bamboo Airway, recently completed its maiden flight.

    The four other carriers currently in Vietnam are Vietnam Airlines, Vietjet Air, Jetstar Pacific, and VASCO.

    Together, the four of them transport more than 50 million passengers last year, up 14 percent against 2017, according to the Civil Aviation Authority of Vietnam.

    The number of passengers through Vietnam airports during the year increased 12.9 percent to 106 million passengers.