HANOI Jan 10 National carrier Vietnam Airlines
earned 533 billion dong ($25.3 million) in gross profit last
year, beating its own annual target by 34 percent as seat
occupancy reached a record high, the airline said in a statement
The flag carrier dominates the local market and has been
preparing for an IPO in the second quarter of 2014, part of
Vietnam's effort to boost financial and operational strength of
a state sector with low efficiency despite easy access to
Vietnam's fledgling airline industry is poised to boom as
local competition heats up with fleet expansions, new routes and
planned share offerings that are set to make it one of the
world's three fastest-growing markets.
The Hanoi-based unlisted Vietnam Airlines said revenues last
year reached 72.55 trillion dong, or 8.5 percent above its
annual target. It gave no comparative figures of its earnings
The airline carried around 15 million passengers last year
with a record high seat occupancy of 79.5 percent, the statement
Vietnam Airlines' executives should seriously accelerate the
privatisation of the airline this year or face replacement,
Prime Minister Nguyen Tan Dung was quoted by the official Thanh
Nien (Young People) on Friday as telling an industry meeting.
The airline and 10 other companies in the transport sector
are scheduled to conduct initial public offerings in 2014,
Transport Minister Dinh La Thang was quoted as saying in the
He gave no specific dates.
Vietnam Airlines has planned to increase its fleet by 28
percent with additions of 101 Boeing 787 Dreamliners and
Airbus A350s by 2015.
The airline has existing orders for eight 787s and 11 more
through leasing companies, according to Boeing.