Air France and Vietnam Airlines sign joint venture
On October 10, Air France and Vietnam Airlines announced the signing of a strategic partnership which aims to optimize their services between France, Europe and Vietnam and to strengthen their position in a market.
The new joint venture will launch on November 1, 2017. Air France and Vietnam Airlines plan to improve connections thanks to adapted flight schedules on departure from Charles de Gaulle Airport, Hanoi Airport and Ho Chi Minh City Airport.
Air France and Vietnam Airlines today carry more than 400,000 passengers every year. The two airlines have also been working together for more than 20 years on the operational side, with partnerships in the field of aircraft maintenance and crew training. Since 2010, both carriers have been operating code-share flights between Paris, Hanoi and Ho Chi Minh City.
According to CEO of Air France Franck Terner the alliance is one of the aims of Air France Trust Together strategic plan. The plan was announced in November, 2016 and aimed to improve the competitiveness of Air France‘s business.
“Our aim is to maintain and develop our position as European leader in Asia region with very strong growth potential,” said Franck Terner in an official statement.
Also Air France hopes the joint venture with Vietnam Airlines will help mitigate the pressure on prices.
“There is still pressure on prices on routes heading east,” Franck Terner said to Reuters.
Vietnam Airlines says it expects to reach its full potential in France and Europe thanks to new joint venture.
“Cooperation with Air France also demonstrates Vietnam Airlines’ commitment and determination in boosting investment in the international market, especially the French and European markets through the key route between Vietnam and France,” said President and CEO of Vietnam Airlines Duong Tri Thanh.
According to Reuters, Air France is also looking at working more closely with Indian carrier Jet Airways, with which it has had a code share since 2016.
„We are in advanced talks with Jet Airways to see how we can strengthen our co-operation,“ Air France chief executive Franck Terner told Reuters.