Vietnam Airways efficiently holds 2024 Annual Normal Shareholders' Assembly

Vietnam Airways efficiently held its 2024 Annual Normal Shareholders’ Assembly, attended by representatives from the Fee for the Administration of State Capital at Enterprises (CMSC) and present shareholders of Vietnam Airways. 

On the assembly, Vietnam Airways shareholders mentioned and accredited key agendas, together with the 2024 marketing strategy, the audited 2023 monetary statements, the 2023 Board of Administrators’ exercise report and the 2024 orientation plan.  The nationwide flag provider recorded consolidated income of VND 93,265 billion in 2023, almost 30 per cent increased than the earlier yr and approaching pre-pandemic peak ranges. In 2024, Vietnam Airways goals to steadiness income and expenditure with versatile options.

In 2023, the aviation trade continued to face challenges comparable to geopolitical conflicts, provide chain disruptions and a worldwide financial downturn. Gas costs remained excessive at over USD 105 per barrel; rates of interest and alternate charges have been unfavourable for Vietnam’s aviation operations. Domestically, financial progress slowed, resulting in weakened journey demand and a noticeable lower in client buying energy. Worldwide markets comparable to Australia, India and Southeast Asia confirmed constructive indicators whereas key markets in Northeast Asia recovered slower than anticipated.

Vietnam Airways continued to beat difficulties and achieved outstanding enterprise ends in 2023. The airline transported over 24.1 million passengers and 230,000 tons of cargo, up 16.4 per cent and 5.8 per cent year-on-year respectively. Constructive operational outcomes enabled Vietnam Airways to realize consolidated income of VND 93,265 billion, almost 30 per cent increased than in 2022 and approaching the 2019 peak. Pre-tax consolidated losses decreased by VND 5,583 billion, halving in comparison with 2022.

Regardless of elevated operational prices, Vietnam Airways constantly improved its providers, receiving constructive buyer suggestions. The airline obtained prestigious worldwide awards, together with the ” World 5-Star Airline” by the Airline Passenger Expertise Affiliation (APEX); High 20 Most secure Airways by AirlineRatings and World Journey Awards in 4 classes: “Asia’s Main Airline – Financial system Class,” “Asia’s Main Cultural Airline,” “Asia’s Main Cabin Crew ,” and “Asia’s Main Inflight Journal.”

To realize these outcomes, Vietnam Airways applied a complete vary of options intently aligned with market developments. The airline restored its worldwide route community to 90 per cent of 2019 ranges, including new routes like Hanoi/ Ho Chi Minh Metropolis to Mumbai, Hanoi to Melbourne, and Ho Chi Minh Metropolis to Perth. The home route community continued to function at pre-2019 ranges. The airline successfully carried out business, promoting, and communication actions, rising income and enhancing the model picture of Vietnam Airways.

Moreover, Vietnam Airways targeted on price administration and thorough financial savings. Moreover lowering prices in keeping with manufacturing scale, the company applied cost-saving measures, negotiated worth reductions and deferred funds, reducing prices by an estimated VND 3,200 billion. Vietnam Airways additionally proactively restructured loans and flexibly used short-term borrowing.

Notably, the airline enhanced its service enhancement technique, included new applied sciences into numerous processes and repair touchpoints, leading to improved productiveness and buyer satisfaction. In 2023, the Buyer Satisfaction Index (CSI) exceeded targets with a home CSI of 4.17/5 and a global CSI of 4.0/5.

Dang Ngoc Hoa, Chairman of Vietnam Airways, stated: “In 2024, challenges proceed to face the aviation sector comparable to macro-economic uncertainties. Primarily based on enterprise surroundings forecasts, Vietnam Airways has set key targets, instructions, and duties. The corporate will concentrate on restructuring belongings, capital, funding portfolio, organisational construction and company governance reforms. The first objective is to cut back losses and steadiness income and expenditure in 2024.”

In 2024, the worldwide financial and political panorama will stay difficult with extended geopolitical conflicts and excessive gas costs at USD 104 per barrel. USD rates of interest will stay excessive, affecting alternate charges and enter prices. World passenger quantity is forecasted to completely get well to 2019 ranges, however the Asia-Pacific area will want extra time, particularly Northeast Asia. Macro dangers and airport infrastructure overloads stay. Pratt & Whitney’s international engine recollects are inflicting plane shortages due to this fact impacting operations.

Vietnam’s macroeconomic outlook reveals constructive indicators, with the economic system anticipated to develop steadily and the home aviation market rising by six to eight per cent. This units a basis for Vietnam Airways to additional cut back remaining losses and steadiness income and expenditure.

To realize this objective, Vietnam Airways will implement complete options throughout all enterprise elements. The airline will enhance its community growth with new routes to Europe and Southeast Asia in 2024. Within the home market, Vietnam Airways will modify flight frequencies to capitalise on demand, preserve a powerful market share on key routes, and enhance capability on tourism routes. The airline will proactively develop working plans based mostly on numerous situations, enhancing product and worth administration capabilities.

For its fleet, Vietnam Airways will concentrate on investing in narrow-body plane tasks and changing the configuration of A321ceo plane to enhance operational effectivity, assembly market demand and aligning with the fleet restructuring plan. The company may even full preparations for funding in a complete service advanced at Lengthy Thành Worldwide Airport to maneuver into the funding implementation section.

By way of service, Vietnam Airways continues to raise its 5-star high quality requirements, aiming to encourage and promote new initiatives. The airline will tailor distinctive buyer expertise for various key routes, enhance work processes, and apply digital transformation measures to reinforce administration effectivity and buyer expertise.

Vietnam Airways will preserve stringent cost-saving and value administration programmes, in search of alternatives to barter reductions, deferrals and fee postponements. To keep up money move steadiness, the company will expedite capital divestment and implement measures to optimise prices, income, and monetary administration successfully.

The airline will proceed its restructuring efforts to beat the impacts of the COVID-19 pandemic and lay the inspiration for sustainable growth. The restructuring options concentrate on finishing capital divestment from some subsidiaries, presenting to authorities the plan to increase the reimbursement interval for re-lending loans, and selling organisational restructuring, lowering intermediate ranges, investing in expertise and digital transformation to enhance labour productiveness and useful resource high quality.