Vietnam Airlines Looking to Add More Routes to India, Product Upgrade Underway

Vietnam Airlines is the second largest player in the India-Vietnam market. The flag carrier of Vietnam is now considering launching more routes in the Indian market. In an interview, the President of Vietnam Airlines discussed various key aspects like the expansion plans, product upgrades, and the impact of Air India’s entry into the Vietnam market. Let’s discuss the interview in detail.

Vietnam Airlines: India Expansion

In an interview with CNBC-TV18 news, the President and Chief Executive Officer at Vietnam Airlines, Le Hong Ha stated that the airline is looking to add more routes to India. This announcement comes just a day after the airline upgraded the product on Saigon and Hanoi to Delhi routes from Airbus A321 to A350-900. Other than passenger capacity, the widebody deployment also allows the airline to carry more cargo when compared to narrowbodies.

Now that the airline is operating to Delhi exclusively with Airbus A350, it is looking to upgrade Mumbai services to widebody aircraft as well. It connects Mumbai to both Ho Chi Minh City and Hanoi.

Vietnam Airlines entered the Indian market in 2022, with the launch of Delhi flights. In 2023, it launched operations at Mumbai Airport, becoming the second Vietnamese airline to do so. Talking about the expansion, the CEO said that the Indian market has a huge traffic potential.

Does Air India Entry Impact Vietnam Airlines Plans?

Currently, three airlines, including Vietnam Airlines, VietJet Air & IndiGo operate between India and Vietnam. The majority of this market is handled by carriers based in Vietnam, with VietJet Air being the largest player. But this scenario will witness a little shift in June.

From June 1, Air India will enter the Vietnam market with the launch of flights between Delhi and Ho Chi Minh City. Using its Airbus A320neo fleet, the airline will be operating five times a week on this route.

According to Vietnam Airlines CEO, the entry of Air India is a welcome move. He said that the market has a huge potential and is big enough to accommodate four players. He added that competition is good for any industry as the customer is the first beneficiary. Once Air India starts services, there will be more opportunities for both countries to enhance tourism exchange.

Cargo Growth: Intention For Dedicated Freighter

Vietnam Airlines is planning to deploy widebody aircraft to Mumbai Airport as well, alongside its current operations at Delhi Airport. When the route will be upgraded from A321 to A350, it will enhance passenger capacity. But along with that, it will increase the cargo capacity as well.

The belly cargo capacity of the A350 is much larger than the A321. A350 has a belly cargo capacity of 116 cubic meters, while A321 has 40.6 cubic meters. Hence, the airline will provide almost triple the cargo capacity on sale between India and Vietnam. Recently, VietJet Air appointed Teleport to handle its cargo operations on the Delhi to Saigon route.

The cargo market between India and Vietnam is huge. The trade exchange between both countries is worth more than $14 billion. Once Vietnam Airlines inducts a dedicated cargo aircraft, it will deploy it on Indian routes, looking at the potential. Before this, the airline will increase cargo capacity by deploying widebody aircraft.

Indian Market Still in Loss

Despite the expansion, the Indian market of Vietnam Airlines is running in losses. The airline is losing its passenger traffic in the market, but it is investing in the Indian market with a long-term vision. It is confident that in the coming times, the Indian market will become profitable.

Currently, Vietnam Airlines aims to promote traffic between both countries. It aims to enhance services and deploy a better product for Indian routes. The introduction of the A350 on the Delhi route and in the future, the Mumbai route will enhance the passenger experience.

Conclusion

Vietnam Airlines, the flag carrier of Vietnam is looking to increase flights to India. It has upgraded the Delhi services from A321 to A350. It is looking to repeat the same with the Mumbai route as well. The entry of Air India in the Vietnam market will not impact the plans of Vietnam Airlines. The market has huge potential and can accommodate all four airlines. It will deploy freighter aircraft in India, whenever it gets a delivery.

What do you think about the expansion plans of Vietnam Airlines in the Indian market? Discuss in the comment section.