EU growth source for Vietnam Airlines

      National flag carrier Vietnam Airlines experienced sound economic growth in Europe while many other international airlines faced difficulties due to the global economic crisis, said chief representative in France Le Dung.
Vietnam Airlines earned a total revenue of 165 million ERO (222.4 million USD) last year, a 20 percent increase on the previous year while average growth in Europe was only 12 percent.
The national airline’s turnover in the French market alone increased 20 percent with the total flight capacity on the Hanoi-Paris and HCM City-Paris routes reaching 87 percent.
The airline has expanded into northern, western and central Europe while flying direct to France , Germany and Russia .
The airline’s Chief representative in the Commonwealth of Independent State Nguyen Tien Nam said: “The global financial crisis has had negative impacts on most business fields including the aviation industry”.
Nam added that Vietnamese expats living in Russia are experiencing financial difficulties that would lead to a decrease in turnover for Vietnam Airlines in the region because they accounted for half of the total passengers flying to and from Vietnam .
The national airline said it had planned to increase flights from four to six per week between Vietnam and Russia but opted not to do so because of the economic crisis.
In a bid to boost profits, Vietnam Airlines had cut fares, reduced costs and cooperated to boost passenger numbers, Nam said.
Furthermore, European markets such as France went from strength to strength as Vietnam was a popular destination for French travelers, Dung said.
Vietnam Airlines increased the numbers of flights to France from six to eight flights per week till the end of this October as Paris remains a major European hub.
The national carrier is also planning to hold the 2009 Vietnam Sea Festival in Paris on April 28 and 29 to promote tourism and expand its market share in Europe .
The fare is designed to promote 30 top tourist destinations, and representatives, from hundreds of travel agencies in Europe and Vietnam will be attending the event.
General director of Vietnam Airlines Pham Ngoc Minh said 2008 was one of the most difficult years the corporation had ever faced but it was one of only a few airlines to have bucked the financial crisis.
Vietnam Airlines transported more than 8.8 million passengers last year, bringing in revenues of nearly 27 trillion VND (1.5 million USD) and profits of more than 230 billion VND (13.1 million USD).
Minh said the corporation would strive to attract 9.4 million passengers this year and earn a revenue of 23.6 trillion VND.