The Ministry of Transport two weeks ago reported that all the domestic airlines made profits in 2013, especially cheap Vietnam airlines.
Vietnam Airlines, the national air flag carrier, has reported the revenue of VND72.555 trillion and the pretax profit of VND533 billion. Vietnam Airlines holdings made a profit of VND140 billion, double that of the last year, a considerable growth after three years of stagnation.
Vietnam Airlines reportedly provided 114,000 flights, serving 15 million passengers.
Vietjet Air, one of the new cheap Vietnam airlines, has not released the 2013 finance report. However, it expects a satisfactory profit with 3.2 million passengers served, which is triple that of the last year.
However, analysts have pointed out that Vietnam Airlines’ profit came not only from the transport services, but also from ground services, air petrol and imports & exports.
They noted that Vietnam Airlines in 2013 got two irregular sources of income from the sale of two Forker 70s and the $18 million loan from Airbus.
Vietnam Airlines’ managers themselves once admitted that it incurs loss from the domestic transport services, while the loss can be only offset by the international flights and ground handling services.
Governor of the State Bank of Vietnam Nguyen Van Binh once revealed that Vietnam Airlines asked the State Bank not to adjust the dong/dollar exchange rate until December 31, 2013, or its profit would turn into loss.
In 2011, the air carrier reported the predicted loss of VND1.787 trillion for domestic air routes to the Civil Aviation Authority of Vietnam (CAAV). In 2012, it had to adjust the production plan three times and tried every possible method to cut down expenses.
Meanwhile, Vietjet Air, one of the "rookie" cheap Vietnam airlines on the market, reported the pretax profit of VND120 billion by the end of July 2013, purely from the transportation services.
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