Vietnamese airlines expand revenue beyond passenger transport amid aviation challenges
Vietnamese airlines expand revenue beyond passenger transport amid aviation challenges
Some Vietnamese airlines are actively exploring additional revenue streams by not only concentrating on their core business of passenger transportation but also venturing into live-stream services, providing consultations and career advice, and facilitating sales.
Flight attendants sell milk tea on a Pacific Airlines flight. Photo: Supplied |
Their strategic diversification of revenue streams responds to the persisting challenges within the aviation industry.
Vietravel Airlines recently surprised customers with a live stream on Thursday, featuring discussions by a cabin crew manager, flight attendants, and other staff addressing viewer questions on topics ranging from flight attendant recruitment to industry salaries and market dynamics.
The carrier not only engages in career consulting during these live streams but also introduces and sells various products, such as toothpaste and local specialties.
Pacific Airlines, a member of the Vietnam Airlines group, has also embraced additional business directions by selling souvenirs like shirts, hats, handbags, and Pacific Airlines airplane models at check-in counters.
Flag carrier Vietnam Airlines and Pacific Airlines have started selling in-flight milk tea on services between major cities such as Ho Chi Minh City, Da Nang City, Nha Trang City in south-central Khanh Hoa Province, Phu Quoc Island City off southern Kien Giang Province, and Hanoi.
The impact of such initiatives on their revenue is evident in the performance of airline catering companies.
Notably, Noi Bai Catering Services JSC (NCS) reported that milk tea sales in 2022 reached VND21.9 billion (US$903,840), with in-flight turnover contributing VND13.9 billion ($573,700), accounting for 63.4 percent of the total.
Another catering company in the southern region logged nearly $1 million in annual boba tea sales.
Low-cost carrier Vietjet has also achieved substantial earnings from ancillary activities, with revenue from luggage, meal sales, priority services, and more exceeding VND4.6 trillion ($189.8 million) in the second quarter of 2023.
Flight leasing, ownership transfer, and trade of aircraft and engines also brought Vietjet nearly VND9 trillion ($371.4 million) in the first half of the year, constituting 40 percent of the airline’s total revenue.
