After more than two decades of business relationship, flag carriers Singapore Airlines and Vietnam Airlines have signed a memorandum of understanding to further strengthen their cooperation. Yet these two airlines are part of different alliances.
Develop bilateral cooperation
As soon as the Covid period ended, the two airlines restored increased flight frequencies between the two countries. Vietnam Airlines offering daily flights from Hanoi and Ho Chi Minh City to Singapore. Singapore Airlines also offered several daily flights from Singapore to Da Nang, Hanoi and Ho Chi Minh City.
Both airlines to offer codeshares for streamlining purposes
Today, the companies offer more than 62 weekly flights between the two countries. They will look for better ways to expand their partnership. So, as part of the recently signed MoU, the two airlines initially plan to explore the possibility of codeshare agreements facilitating better connectivity between Singapore and Vietnam. The idea of codeshare could eventually be expanded to include other destinations currently served by Singapore Airlines, opening the door for network expansion.
What are the benefits for passengers?
Apart from the idea of initiating a codeshare agreement, the MoU will also see Singapore Airlines and Vietnam Airlines explore different areas of business cooperation that could help deliver more value and options to their passengers. Nothing has been clarified at this time.
We talk about loyalty programs
This cooperation could include loyalty programs, even if the two carriers are members of different alliances, or even the mutual exchange of data to better understand the overall journey, the needs and the desires of the passenger. There is also the possibility of exploring joint ventures or equity investments in another airline.
The two bosses speak
Mr. Le Hong Ha, Chairman and CEO of Vietnam Airlines , said: “We are delighted to build on this agreement with our trusted partner Singapore Airlines, one of the world’s leading carriers. For many years, Singapore has remained one of the most important markets for Vietnam Airlines. We hope to leverage our shared capabilities in many business areas of our business and thereby provide a seamless experience for our valued customers. This MoU will also establish a solid foundation for our future partnership and a strong recovery from the pandemic. »
Mr. Goh Choon Phong, Managing Director of Singapore Airlines, said, “Singapore Airlines and Vietnam Airlines have well-established networks, which can support each other to enhance connectivity between the two ASEAN countries and key markets around the world. These win-win arrangements will provide more options and greater value for our customers, support economic growth and strengthen initiatives that facilitate tourism activities.”