DALLAS — Vietnam Airlines (VN) recently welcomed its first Airbus A320neo aircraft, marking the start of the fleet modernization effort. Two more A320neos are expected to join the Vietnamese carrier's fleet by the end of 2024.

This new addition comes at a crucial time as VN grapples with a capacity shortage due to grounded Pratt & Whitney GTF engines on some existing aircraft. The A320neo offers several advantages, including increased passenger capacity and more fuel-efficient engines.

With a configuration of 182 seats, including 8 in Business Class and 174 in Economy Class, the A320neo will provide a significant boost in passenger capacity. VN expects to add nearly 40,000 seats during the peak summer season and an estimated 300,000 seats in the second half of 2024.

Boosting Domestic Travel, Addressing Capacity Shortage

The new aircraft will be deployed on domestic routes, connecting major Vietnamese cities including Hanoi (HAN), Da Lat (DLI), Phu Quoc (PQC), Ho Chi Minh City (SGN), Thanh Hoa (THD), and Chu Lai (VCL). This aligns with Vietnam's recovering travel demand, particularly for domestic flights.

The arrival of the A320neo comes amidst challenges for Vietnamese aviation. The Civil Aviation Authority of Vietnam (CAAV) has encouraged airlines to lease aircraft to address the capacity gap caused by grounded engines.

Vietnam's overall passenger volume for the first quarter of 2024 reflected a decrease of 5% year-on-year, with domestic travel experiencing a steeper decline of 18%.

These declines can be attributed to several factors, including the temporary suspension of Vietnam Airlines' subsidiary Pacific Airlines (PX) and reduced operations within Bamboo Airways (QH). However, with the recent restart of domestic service by PX using leased aircraft from VN, there are signs of recovery in the industry.

Commitment to Continuous Improvement

Vietnam Airlines acknowledges the impact of the current economic climate on travel demand. In response, the carrier has announced plans to optimize its A321ceo fleet configuration to better align with market needs and its overall fleet restructuring strategy.

The Vietnamese flag carrier remains committed to continuous improvement for its passengers. The carrier emphasizes its dedication to passenger comfort and safety while highlighting its plan to further expand its fleet with the addition of Boeing 787-10 Dreamliners.