Embracing “Culture of Upgrading” for World-Class Passenger Experiences

The COVID-19 pandemic and a slowdown in global development heavily impacted the aviation industry, including Vietnam Airlines. However, thanks to relentless efforts, the airline began to see operational improvements in the second quarter of 2024, achieving a pretax profit of nearly VND1,000 billion. Vietnam Airlines has distinguished itself as the first and only Vietnamese airline to receive the “5-Star International Airline” award from APEX. Vietnam Business Forum has an interview with Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines.

Could you tell us about Vietnam Airlines' determination, efforts and solutions to improve its business performance in the current challenging environment?

The period from 2020 to 2022 presented many challenges, as travel demand plummeted, resulting in a sharp decline in both flights and revenue. However, thanks to the determination of our staff, we were able to navigate these difficulties by implementing many strong and consistent solutions.

First, we prioritized the alignment of revenue and expenditure by optimizing resources and implementing strict cost controls. Our top objectives included eliminating unnecessary expenses and adjusting the operational structure to reduce financial pressures. We also reviewed operations, restructured the fleet, and enhanced processes to boost overall work performance.

Second, Vietnam Airlines expanded into new markets, targeting potential customer segments, particularly in cargo and international transportation. This approach reduces reliance on passenger transport while enhancing revenue streams from cargo and parcel services.

Third, the restructuring of the business, including rearranging the workforce and promoting digital transformation, established a robust foundation for recovery. We deployed new technologies to optimize workflows, applied smart management systems, automated flight operations and services to slash operating costs and enhance customer experience.

In addition, another important factor was flexible adaptation to market conditions. As travel demand gradually recovered, we quickly reopened international and domestic routes while strengthening ties with major partners to capture new cooperation opportunities.

Thanks to these efforts, by the second quarter of 2024, Vietnam Airlines achieved nearly VND25,000 billion in revenue and a pretax profit of almost VND1,000 billion. This performance not only helped us overcome challenging times but also established a strong foundation for future growth.

Vietnam Airlines recognizes that people are the key to its service upgrading campaign

How is Vietnam Airlines currently aiming to achieve 5-star status and expand the “Upgrading Service" Program to inspire and promote initiatives through specific programs and activities?

Improving the quality of customer services is the focus of our strategy. Currently, Vietnam Airlines is the first and only Vietnamese airline to successfully obtain the "5-star Airline" Award from APEX, which is a testament to our continuous efforts to improve service quality and enhance customer experiences. Achieving APEX's 5-star standard is a big step forward, affirming Vietnam Airlines' position in the international market.

We understand that customer satisfaction is not only a key factor in maintaining a competitive position in the market but also an important foundation for sustainable development in the future. With a remarkable growth in the Customer Satisfaction Index (CSI) in 2023, we have adopted many programs to further raise our service quality and deliver perfect experiences to customers.

First, Vietnam Airlines has implemented the "Upgrading Service" Program, centering on improving every step in the customer service process. The program includes initiatives to enhance trip service quality, from ticket booking and check-in at the airport to inflight experiences. We have constantly updated our convenient services, from inflight entertainment systems and diverse meal menus to seat comfort and passenger cabin space. In particular, we emphasize training for our flight attendants and ground staff to ensure they possess the necessary knowledge, skills, and a professional, friendly service attitude.

Second, Vietnam Airlines has made significant investments in digital technology, launching online services and smart mobile applications. Customers can easily book tickets, check in online and track flight information directly from their smartphones, enhancing convenience and reducing travel time.

Third, we are constantly improving international customer services by improving the 5-star service quality according to Skytrax standards. Vietnam Airlines has expanded its international flight attendant training program, enhanced premium services on international routes, and strengthened cooperation with major tourism and aviation partners to bring added value to customers. We aim to enhance our international CSI Index while expanding our alliance network, particularly with SkyTeam, to provide greater ease, convenience, and maximum benefits for our customers.

Finally, we are actively applying “green service” initiatives to achieve sustainability and minimize environmental impacts of each flight. The adoption of sustainable aviation fuels (SAF) and emission reduction measures, along with energy-efficient strategies in operations are important steps to both protect the environment and enhance customer experiences.

Vietnam Airlines is dedicated to enhancing service quality in a modern, friendly, and professional manner, ensuring passengers have memorable experiences on every journey.

Achieving APEX's 5-star standard marks a significant advancement, reinforcing Vietnam Airlines' position in the international market

To reaffirm its capacity and position in the market, what tasks will Vietnam Airlines focus on?

Vietnam Airlines set a long-term development strategy to maintain its leadership domestically and internationally. First, we focus on upgrading our fleet and modernizing our infrastructure to ensure stability and the highest operational efficiency. We have been investing in modern, wide-body aircraft such as Boeing 787 and Airbus A350 to sharpen our competitiveness in transport capacity, fuel economy and environmental impact.

Vietnam Airlines will expand its international flight network, with emphasis on potential markets in the Asia-Pacific region, Europe and North America.

We also aim for sustainable development, especially promoting environmental protection programs and applying green solutions in operations. In addition to business operations, we also give emphasis to developing corporate culture and improving service quality through training and service improvement programs. The “upgrading” culture is a key component of our strategy, aimed at delivering a world-class experience to passengers on every journey.

Vietnam Airlines is committed to continuously improving its position in the international market and becoming one of the most prestigious and reliable airlines in the world.

As a member of the Executive Committee of VCCI, 7th term, how do you view the significance of the six codes of ethics for Vietnamese businesspeople, and what steps do you believe Vietnam Airlines should take to continue and popularize these values in its operations?

At Vietnam Airlines, building and spreading corporate ethical values is not only the responsibility of the board of directors but also the common mission of all officers and employees. I highly appreciate the initiative on the codes of ethics for Vietnamese business people because it promotes not only corporate social responsibility but also core values in business, especially in the era of globalization.

Vietnam Airlines has seriously applied these ethical principles, centering on transparency, equality and responsibility to the community. We always respect the law, and constantly innovate and seek sustainable cooperation solutions with partners. In addition, protecting the environment and respecting nature is an important part of our sustainable development strategy.

We believe that these ethical values not only help businesses develop strongly but also help them build prestige and trust in the community, thus bolstering common development. Vietnam Airlines always closely adheres to the ethical standards introduced by VCCI, and this is illustrated in each of our policies, activities and development projects.

In the current context, building and maintaining ethical values in business is becoming more urgent. Vietnam Airlines will continue to take the lead in applying these standards while spreading its own ethical culture to all employees, hence actively contributing to the development of the Vietnamese aviation industry and the international community.

Thank you very much!

By Tran Trang, Vietnam Business Forum