- Vietnam Airlines will move from Gatwick and ramp up to a daily service from Heathrow
- Flights will start on 31st March 2015
- The airline will launch its new 787-9 fleet from the UK’s hub at Heathrow in July 2015
- Vietnam Airlines is leaving Gatwick to launch a direct service from Heathrow, with new bookings available from 12th January 2015.
From next summer, the airline will use its new fleet of 787-9 Dreamliners to operate five weekly services to Hanoi and Ho Chi Minh City. The route frequency will be further increased to a daily service as Vietnam Airlines benefits from the strong transfer traffic and premium passenger demand that Heathrow attracts.
The increased Vietnam frequencies will also boost British businesses, who will benefit from improved direct access to a market where import demand is expected to grow by around 250% between 2010 and 2020 – faster than any other emerging economy, including China.
There are currently over 26 emerging market destinations with daily flights from Continental European hubs but not connected to Heathrow – a situation that is estimated to be costing the UK economy £14 billion annually in lost trade, tourism and inward investment.
Because Heathrow is full, slot availability for long-haul routes is rare. The agreement with Vietnam Airlines took seven years to come to fruition, and Heathrow currently has a queue of thirty airlines waiting for slots. Although some airlines have attempted to operate from point-to-point airports, many more have instead opted to base their operations at hubs abroad. Last year alone, the UK lost over 5 million passengers to rival hubs, whilst a further 2.5 million passengers travelled from Heathrow via the UK’s European competitors due to the lack of long-haul connectivity caused by capacity constraints at Heathrow.
Current new aircraft orders are dominated by 787s and A350s (nearly 70% of current orders) as airlines seek to capitalise on the improved fuel efficiency the aircrafts provide. With 85% of these orders coming from network airlines operating out of hubs, the deployment of the 787 by Vietnam Airlines on the Heathrow route is further proof that the aircraft is actually a ‘hub grower’ and not a ‘hub buster’.
Heathrow CEO John Holland-Kaye said:
“We are delighted that Vietnam Airlines has chosen to operate its new Dreamliner 787 fleet from Heathrow, securing regular direct flights from the UK to a vital emerging market. This demonstrates once again that only a strong hub airport like Heathrow, with a mix of premium direct and transfer passengers, can help Britain win the race for growth.
With Vietnam identified by the government as one of the top twenty growth markets for UK businesses, this new route shows how Heathrow expansion is the best solution for the UK economy, creating up to £211bn in GDP and 180,000 new jobs.”
Vietnam Airlines CEO Dr Pham Ngoc Minh said:
“Our vision, and that of the government of Vietnam, is for Vietnam Airlines to become the major carrier in Southeast Asia – and this move represents a tremendous step forwards in achieving that goal. Less than four years after successfully launching the first ever nonstop services between the UK and Vietnam, we are delighted that our passengers will soon be able to enjoy daily flights on the very latest and most comfortable aircraft, from one of the world’s most important, advanced and well-connected international hub airports.”
Vietnam Airlines General Manager UK & Ireland Le Thanh Dzung said:
“The launch of Vietnam Airlines’ non-stop services from London saw UK arrivals into Vietnam rise by over 40 per cent year on year, and both the leisure and corporate markets have grown steadily ever since. Moving our operations to Heathrow will enable us to offer the increased frequency and capacity needed to build on and cater to this growing demand. As a prestigious global hub airport, Heathrow also provides a perfect platform on which to launch our new, world class product and branding.”
Lord Puttnam, UK Trade Envoy to Vietnam, Cambodia and Laos, said:
"As an island trading nation, air links in to fast growing import markets like Vietnam are vital for the UK’s economic growth prospects. That’s why I am delighted to welcome the announcement that Vietnam Airlines will now have a daily, direct route to Britain’s hub airport, helping British business to compete in the global race.”
The new slot at Heathrow was made possible because of a new tool developed by NATS and its partners in collaboration with Heathrow. The Strategic Airport Capacity Management (ACM) system means airports can now accurately and quickly simulate the impact of various factors on performance, for example stand closures, scheduling delays and poor weather, which means it can identify the existing and future capacity of its runway with greater certainty.
NATS Director of Airport Operations Mike Stoller said:
“We developed the Strategic ACM tool to allow airports like Heathrow to improve how they make decisions and to model their operation quickly and with a degree of certainty that was impossible in the past. We’re delighted it has had such an immediate impact and look forward to working with Heathrow Airport on future enhancements to this capability.”
Notes to Editors:
Opportunities
UKTI Vietnam has identified key priority sectors for UK business:
- ICT – the sector has seen 20-25% average growth in recent years, and contributes 7% to the country’s GDP
- Advanced engineering - Vietnam has the 3rd fastest growing aviation market in the world
- Energy (oil & gas) – Vietnam is South East Asia’s third largest oil producer
- Education – Vietnamese culture attaches great importance to education as an investment in the future. There are over 7,000 Vietnamese students in the UK, and there is additionally great potential for partnerships in market
- Retail - one of the world’s fastest growing retail markets for over a decade; retail sales and service revenue was expected to reach $103 billion in the first 10 months of 2013
- Healthcare - Vietnam plans to invest up to $1.5 billion in pharmaceutical production and $1.8 billion to upgrade overcrowded hospitals and build new ones by 2020
- Mass transit – with ambitious programmes in Hanoi and Ho Chi Minh City, an estimated $120 billion investment is required over the next seven years
- UKTI are also pursuing three high value opportunities in Vietnam, which are:
- Preparations for the 2019 Asian Games in Hanoi
- Vietnam’s civil nuclear programme
- Urban regeneration in Ho Chi Minh City, including a new international airport and mass transit systems
