South Korea is the most strategic market within Asia for Vietnam and its flag carrier Vietnam Airlines. There are strong business ties between the countries and Vietnam is one of the most visited destinations for Korean tourists. That’s why its worth covering what the latest memorandum of understanding signed by Vietnam Airlines and South Korea are all about.
In this post:
- Four Major Partnerships Signed with Korean Companies
- New MRO Center Could Improve Aircraft Reliability
- Expanded Cargo Partnership with Korean Air
- Tourism Partnerships May Signal Route Expansion
- What This Means for Passenger Flights
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Four Major Partnerships Signed with Korean Companies
It is hard not to see a link between the administration change in Korea and these new MoU (Memorandum of Understanding) signed. The more left leaning government is strengthening ties with what it recognized as strategic economic and trade partners in the region. Vietnam Airlines signed a total of four MoUs with South Korean companies spanning from aviation to tourism, which might have further ramifications for travel further down the road.
New MRO Center Could Improve Aircraft Reliability
One of the two most important agreements signed is for the construction of a new MRO facility. MRO, standing for Maintenance Repair and Overhaul, facilities are hugely important assets for airlines. Only in such facilities can repairs and any type of upgrading work take place on aircraft.
In this regard Vietnam Airlines Engineering Company (VAECO) and Korean Air have agreed to build a jointly operated facility. The new MRO is to be located at Long Thanh International Airport, which is the new airport currently under construction in the Ho Chi Minh City metropolitan area. The new airport is poised to become a major crosspoint for local air travel. At full capacity Long Thanh International Airport will handle up to 100 million passengers. Therefore having an MRO facility on premises is a fundamental necessity.
Both Vietnam Airlines and Korean Air, both SkyTeam alliance airlines, will benefit significantly from such an asset. More aircraft maintenance capabilities will have their fleets operating smoother and will also sell the services provided to third party airlines. More reliable maintenance capabilities typically translate to fewer flight delays and cancellations for passengers.
Expanded Cargo Partnership with Korean Air
If you’ve followed the steps leading to Korean Air acquiring Asiana Airlines you’ll know that cargo operations were a big part of the deal. Korean Air, now including also Asiana, is a massive cargo operator and Vietnam is a central production hub for many Korean brands.
Therefore, Korean Air and Vietnam Airlines have agreed to further expand their standing cargo operations partnership. The two operators will work jointly on sales, coordinated cargo operations, and on “development of a flexible logistics corridor connecting Vietnam, South Korea and other Key global markets.”
Tourism Partnerships May Signal Route Expansion
Here’s where we move away from aviation news. However, it may have a future impact on air travel and Korean Air, Vietnam Airlines operations.
Vietnam Airlines, the Korea Tourism Organization (KTO), and Saigontourist Group signed an MoU aiming to promoting stronger two way travel between countries. That is to be achieved by creating joint marketing campaigns and tour packages.
What This Means for Passenger Flights Between Korea and Vietnam
Well, immediately nothing unfortunately. However, downstream it may drive the launch of new flights and partnerships between Korean Air and Vietnam Airlines.
That’s something I’ll be keeping a close eye on and I’ll make sure you are up to date with all the latest news. Not to miss any of the latest news make sure to sign up for my free newsletter using the form below.