With SARS firmly behind it, Vietnam Airlines has revived expansion plans and is aggressively adding new routes while looking to boost capacity.

In September, new services were launched between Ho Chi Minh City and Fukuoka in Japan, operating Boeing 767s three times a week. Services between Hanoi and Kuala Lumpur in Malaysia are to be launched late in October, operated three times weekly with Airbus A320s. Also, late in October, four times weekly A320 Hanoi-Singapore services are planned.

Vietnam Airlines was badly affected by a drop in business caused by the SARS outbreak in its home country which started in March. But it recovered faster than most - in no small part because Vietnam tackled the SARS problem quickly and effectively. Widely praised for its handling of the outbreak, Vietnam was the first afflicted country to be removed from the World Health Organisation's list of SARS-affected areas.

Since then Vietnam Airlines has reported a rebound in demand, prompting it to revive deferred expansion plans. It recently launched services between Hanoi and Siem Reap in Cambodia, and reinstated suspended services to China.

The carrier halted all services to China during the SARS outbreak, which was declared fully contained in the last affected areas early in July. Vietnam Airlines has since reinstated services to Beijing, Guangzhou and Kunming.

Separately, the airline has been considering the launch of non-stop services to Frankfurt, and is studying the inauguration of service to the UK and to points on the west coast of North America, such as San Francisco and Vancouver.

It is currently seeking to lease one Airbus A321, one ATR-72 and two Boeing 777-200ERs to meet capacity needs. This expansion is in addition to existing fleet growth plans that have already seen it adding 777s.

Vietnam's fleet currently comprises 10 Airbus A320s, three A321s, eight ATR 72s, seven Boeing 767-300ERs, two 777-200ERs and two Fokker 70s, most of which are leased. It has five A321s on firm order with Airbus and four 777-200ERs on firm order with Boeing.

Source: Airline Business