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VietNamNews

Russian market presents challenges for VN Airlines

Update: February, 02/2015 - 08:30

In 2014, the airline had to reduce the number of flights to Russia from seven per week to five. — Photo nld

HA NOI (VNS) — The national flag carrier Vietnam Airlines is working to overcome the challenges left behind from 2014, which was one of the most difficult years for the aviation and tourism industry operating in Russia.

The country's aviation market saw a significant drop of 20 per cent compared to 2013, with many tourism companies and airline ticket dealers going bankrupt due to low turnover and fierce competition, said a representative of Vietnam Airlines in Russia.

In 2014, the airline had to reduce the number of flights to Russia from seven per week to five. Turnover reached only 80 per cent of expectations, while proceeds from ticket sales agents also decreased greatly.

In 2015, Vietnam Airlines will complete a two-year project elevating its position from a three-star to a four-star airline. The carrier will also launch new aircraft including six Boeing 787s and four Airbus A350s and is remodelling its brand awareness scheme, from uniforms to advertising, he said.

Despites the challenges in the Russian market in 2015, Vietnam Airlines in Russia is determined to maintain its goals of effective operation, improved service quality and sustainable growth.

New air route

Another direct air route linking Russia's Moscow and Viet Nam's central coastal province of Khanh Hoa commenced operations as its first flight landed at Cam Ranh International Airport yesterday.

The chartered flight carried 336 Russian nationals to Nha Trang city for their holiday.

This air route is operated by Azur Air airlines and hired by the Anex Vietnam Trade and Tourism Co. Ltd. It is scheduled to last through the end of 2015 with one flight every five days using Boeing 767.

Thanks to the opening of new air routes to Russia, Khanh Hoa took the lead in attracting tourists from this East European country with nearly 270,000 visitors last year, accounting for 25 percent of total foreign arrivals to the province. — VNS

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