Vietravel Airlines has announced plans to expand beyond passenger transport to include air cargo services, following the introduction of its new chairman.

The airline revealed that Do Vinh Quang, son of Do Quang Hien, founder and chairman of the Vietnamese conglomerate T&T Group, has officially taken over as its chairman. 

The new board members also include Do Quang Vinh, vice-chairman of SHB Bank and chairman of BVIM Fund Management Joint Stock Company; Nguyen Ngoc Nghi, deputy general director of T&T Group; and Dao Duc Vu, CEO of Vietravel Airlines.

In December 2024, T&T Group confirmed that two of its subsidiaries, along with BVIM, had become strategic shareholders in Vietravel Airlines.

With the leadership changes, T&T Group representatives unveiled new strategic directions for Vietravel Airlines, signaling a shift in the airline’s focus within the aviation sector. 

Accordingly, T&T Group aims to develop Vietravel Airlines into an aviation ecosystem, with a particular focus on expanding into air cargo services.

Hien added that the group plans to diversify into other areas such as airline services, ground services, and aviation engineering, as well as aircraft manufacturing. 

T&T Group is currently in discussions with aircraft manufacturers Boeing and Airbus to establish maintenance, repair, and overhaul (MRO) centers, as well as to produce aviation parts in Vietnam.

Vietravel Airlines is considered a key part of T&T Group’s broader infrastructure-logistics-aviation project pipeline. 

In early January, T&T Group and Singaporean consultancy CPG Signature Pte Ltd presented plans for an aviation industrial complex in Quang Tri Province to the local government.

Challenges ahead for Vietravel Airlines’ fleet growth

Despite these ambitious plans, aviation experts point out that Vietravel Airlines faces significant challenges in scaling up its fleet. 

The airline previously operated a fleet of three planes but currently operates only one narrow-body aircraft on a dry lease, far below the minimum fleet size of 30 aircraft typically needed for profitability in the airline industry.

In the competitive Vietnamese aviation market, state-owned Vietnam Airlines and low-cost carrier Vietjet dominate the sector, with fleets ranging from 50 to 100 aircraft, with further expansion planned. 

Bamboo Airways and Pacific Airlines, meanwhile, have struggled to maintain fleet size, with Pacific Airlines reducing its fleet to just 3-5 planes from 11-30 aircraft. 

In addition to high leasing costs, airlines are grappling with debts owed to suppliers such as the Airports Corporation of Vietnam, ground service providers, catering companies, and fuel suppliers.

Currently, Vietravel Airlines operates domestic flights connecting Hanoi and Ho Chi Minh City with Da Nang City, Quy Nhon City in Binh Dinh Province, Nha Trang City in Khanh Hoa Province, and Phu Quoc Island City off Kien Giang Province, along with two international routes from Hanoi and Ho Chi Minh City to Bangkok, Thailand. 

However, frequent flight cancelations, schedule changes, and delays have made some customers hesitant to book tickets, even though the airline offers competitive fares on its website.

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