Phân tích hệ thông quản lý của VietNam Airlines, Lịch sử hình thành VietNam Airlines, cơ cấu tổ chức VietNam Airlines, Lực lượng lao động VietNam Airlines, Phong cách quản lý VietNam Airlines, Quản lý nhân lực, quá trình ra quyết định, Chiến lược doanh nghiệp và thách thức
MGT103 Introduction to business Class: MKT 1618 GROUP INFORMATION Group number Class: MKT 1618 GROUP MEMBERS NO NAME ID NGUYỄN THỊ OANH HS 160319 LÊ VIỆT HÀ HS 160606 NGUYỄN LƯU CHIẾN THẮNG HS 160539 LÊ ANH TÚ HS 160542 LẠI QUANG HUY HS 160500 HOÀNG THỊ MAI ANH HS 160292 TABLE OF CONTENT Introduction 1.1 Purpose of group assignment 1.2 Brief introduction of the company Literature review and critical analysis 2.2 Literature review 2.2.1 Organization structure theory 2.2.2 Planning and decision-making process theory 2.2.3 Business strategies theory 2.2.4 Human resource management theory 2.3 Critical analysis 2.3.1 Organization structure, 2.3.2 Planning and decision-making process 2.3.3 Business strategies 2.3.4 Human resource management 2.3.5 Challenges Recommendation Conclusion 4.2 Summary of contribution 4.2 Limitation Introduction 1.1 Pupose of group assignment Vietnam Airlines is a regional and international airline that is facing a number of challenges For example, in order to achieve its goal of becoming Southeast Asia's flagship airline, Vietnam Airlines will need to spend significantly in infrastructure So, how you plan to make your dreams of being one of Vietnam's most well-known and profitable aviation enterprises a reality? Through the following sections of this article, we will discover how Vietnam Airlines generates and performs those things: first, organizational structure, then planning decision-making, business strategy, human resource management, and ultimately issues and solutions 2.1 Brief introduction of the company -" Tổng Công ty Hàng không Việt Nam – CTCP " is the company's Vietnamese name Vietnam Airlines JSC is the company's English name Vietnam Airlines is the abbreviation for Vietnam Airlines: - The company's charter capital is 11,198.648,400,000 VND With the tax code 0100107518 and the HVN stock code And www.vietnamairlines.com is the company's website Phone: (84.4) 38272289; Fax: (84.4) 38722375 - Hanoi Department of Planning and Investment granted business registration number 0100107518 for the first time on June 30, 2010 and amended it for the third time on April 1, 2015 Head office is located at 200 Nguyen Son in the Long Bien District of Hanoi, Vietnam - On May 27, 1995, Vietnam's Prime Minister, Vo Van Kiet, signed a resolution to form Vietnam Airlines Corporation (Vietnam Airlines Corporation) based on the merger of 20 aviation-related businesses, with the airline serving as the country's cornerstone Two Fokker 70s were bought for $50 million in mid-1995 to replace the Tupolev Tu-134 fleet on domestic routes In December 1995, Vietnam Airlines and GECAS agreed to lease three Boeing 767-300ERs from Continental Airlines (a US carrier that merged with United Airlines on March 3, 2012) to replace three Boeing 767-300ERs and one Boeing 767-200ER leased from AWAS and Royal Brunei Airlines, respectively - Before 2002, the sign of Vietnam Airlines was a stork soaring across the full moon Vietnam Airlines hosted a ceremony on October 20, 2002, to reveal the new emblem "Golden Lotus." This is a watershed moment in Vietnam Airlines' transformation into a world-class airline by updating its fleet, increasing its route network, and boosting service quality Around the globe -Following the nationalization of Gia Lam airport on January 15, 1956, Prime Minister of the Democratic Republic of Vietnam Pham Van Dong signed Decree No 666/TTg creating the Civil Aviation Administration of Vietnam This is the official founding date of Vietnam Airlines as we know it today The airline had only five planes in its fleet at the time (Ilyushin Il-14, Antonov An-2, Aero Ae-45 ) VN-198, VN-199 (Lisunov Li type) and VN-200, VN-201, VN-202 (Lisunov Li type) civil aircraft fleet (Aero-45 type) The Hanoi - Vinh - Dong Hoi route was the first domestic flight, and it was launched on September 2, 1956, on National Day, for 30 northern dong - Many international routes to Asian nations such as Laos, Cambodia, China, Thailand, Philippines, Malaysia, and Singapore were actively utilized between 1976 and 1980 Vietnam civil aviation joined the International Civil Aviation Organization (ICAO) at the conclusion of this decade (ICAO) - Vietnam Airlines was founded in April 1993 as a large-scale state-owned air transport company group On May 27, 1996, Vietnam Airlines Corporation was founded on the basis of integrating 20 aviation and service businesses, with Vietnam Airlines as its center - The Vietnam Airlines Corporation - JSC Board of Directors Mr Dang Ngoc Hoa is the Chairman of the Board of Directors, while Mr Le Hong Ha, Mr Le Truong Giang, Mr Ta Manh Hung, and Mr Tomoji Ishii are members of the Board of Directors -The Board of Directors of Vietnam Airlines Corporation- JSC The Board of Directors consists of Mr Dang Ngoc Hoa as the Chairman of the Board of Directors and the management members are Mr Le Hong Ha, Mr Le Truong Giang, Mr Ta Manh Hung Mr Tomoji Ishii Next, the Supervisory Board consists of Ms Nguyen Thi Thien Kim and the members of that committee are Mr Lai Huu Phuoc and Mr Mai Huu Tho Finally, the board of directors includes Mr Le Hong Ha as the general director, and the deputy general directors include Mr Trinh Ngoc Thanh, Mr Trinh Hong Quang, Mr Nguyen Hong Linh, Mr Nguyen Chien Thang, Mr To Ngoc Giang and Mr Dinh van Tuan - There are three types of member companies: group subsidiaries in which Vietnam Airlines owns 100% of the stock, group subsidiaries in which Vietnam Airlines owns more than 50% of the stock, and group subsidiaries in which Vietnam Airlines owns less than 50% of the stock +Group subsidiaries 100% owned by Vietnam Airlines include HK Catering Vietnam Co., Ltd., VAECO Aircraft Engineering Co., Ltd., SKYPEC Vietnam Aviation Fuel One Member Co., Ltd Vietnam Airport Ground Service Company Limited VIAGS, Aviation Flight Service Company - VASCO + Group subsidiaries with more than 50% capital held by Vietnam Airlines include TCS Tan Son Nhat Cargo Services Co., Ltd., ABACUS Vietnam Global Distribution Co., Ltd., VINAKO Freight Forwarding Co., Ltd Noi Bai Aviation Meal Joint Stock Company , Noi Bai Cargo Services Joint Stock Company, Tan Son Nhat Freight Forwarding Services Co., Ltd., Aviation Labor Import-Export Joint Stock Company, Noi Bai Nasco Aviation Services Joint Stock Company, Company Aviation Informatics Telecommunication Joint Stock Company +Group Companies in which Vietnam Airlines holds a controlling capital contribution of less than 50% include: Export Joint Stock Company, Cambodia Angkor Air, Saigon Post and Telecommunication Joint Stock Company SPT, First One Member Co., Ltd Phuong Nam Tourism and Shipping Investment - Business lines of Vietnam airline + Air passenger and air freight transportation Passengers are transported by air Luggage, products, parcels, letters, etc are all transported + Management consultancy services are provided Direct manufacturing and business, as well as investment and investment capital management Investing abroad, buying and selling enterprises, depleting cash to acquire shares or transfer contributed capital, and selling shares are all options +General aviation operations are direct support service activities for air transportation (flying topographic photography, geological survey, flight calibration of aviation navigation stations, repair, and maintenance of high voltage power lines, etc.) oil and gas, afforestation, environmental inspection, search and rescue, medical emergencies, and flying in support of political, economic, social, security, and defense missions) + Other specialized aviation services: Providing commercial services, tourism, hotels, tax-free sales at airport terminals and provinces and cities; other aeronautical services, Provide ground-based commercial technical services; services at passenger terminals, cargo terminals and parking services at airports and aerodromes + Repair and maintenance of means of transport (except for cars, motorcycles, motorbikes, and other motor vehicles): Maintenance of aircraft, engines, spare parts, aviation equipment and other technical equipment +Producing measuring, testing, orienting and control equipment: Producing components, spare parts, aircraft supplies, technical equipment, and other contents in the field of aviation industry, providing technical services and spare parts for airlines in country and abroad +Manufacture of aircraft, spaceships, and related machinery: Import and export of aircraft, engines, spare parts, aviation equipment (rent, lease, hire purchase and purchase, sale) and other goods according to regulations Regulations of the State, Production, export and import of equipment serving the air transport chain - Achievements and Awards +2016: "Asia's Leading Airline for Cultural Identity" and "Asia's Leading Economy Airline" by World Travel Awards Top most progressive airlines in the world (SKYTRAX) The airline with the best business class seat design on Boeing 787-9 and Airbus A350-900” (China Global Traveler Magazine) + Top airlines in Southeast Asia with passenger traffic reaching over 20 million (CAPA) In 2017: "Airline of the year in Asia - Pacific region" by CAPA- Center for Aviation “World's Leading Airline for Cultural Identity” and “World's Leading Airline for Premium Economy Class” by World Travel Awards 2017 +In 2018: One of the top favorite major airlines in Asia in 2018 (Traveler's Choice Major Airlines – Asia 2018) voted by TripAdvisor Skytrax recognized Vietnam Airlines as a 4-star airline for the third year in a row And become a global 4-star airline by APEX (The Airline Passenger Experience Association) organization - In the direction of Vietnam Airlines' Future: Vietnam Airlines has been leading the way for more than 20 years, with a double-digit growth rate, as a vibrant, contemporary international airline imbued with Vietnamese traditional cultural character The aviation sector in Vietnam is one of the world's fastest growing domestic markets Vietnam Airlines aims to become Asia's top 5-star international airline as a contemporary airline with a brand recognized for its cultural identity Literature review and critical analysis 3.1 Literature review 2.1.1 Organization structural theory a What Is an Organizational Structure? ● An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization These activities can include rules, roles, and responsibilities ● The organizational structure also determines how information flows between levels within the company For example, in a centralized structure, decisions flow from the top down, while in a decentralized structure, decision-making power is distributed among various levels of the organization ● Having an organizational structure in place allows companies to remain efficient and focused b Types of organizational structures There are four types of organizational structures Understanding how they work and what their benefits and drawbacks are can help you make a more informed decision as to which to implement in your workplace The four types are: + Functional structure - In a functional structure, organizations are divided into specialized groups with specific roles and duties A functional structure is also known as a bureaucratic organizational structure and is commonly found in small to medium-sized businesses Most people in the workforce have experience working in this type of organizational structure For example, many companies divide their organization into various departments such as finance, marketing, and human resources Each of these departments then has a manager who oversees it This manager is then supervised by an administrator or executive who oversees multiple departments - Here are some advantages of this structure: Employees are grouped by skill Greater sense of teamwork - Here are some disadvantages of this structure: Lack of communication with other departments Unhealthy competition Management issues + Divisional structure ● In a divisional structure, various teams work alongside each other toward a single, common goal Each of these divisions has its own executive who manages how that branch operates, controls its budgets, and allocates its resources Large companies employ this type of organizational structure One example of the divisional structure is a car company that separates its company by SUV, electric, or sedan vehicle branches While each branch has its own function, they all work toward the same goal of making a sale This is also known as the multi-divisional structure ● Here are some advantages of this structure: Focus on a single good or service More centralized leadership ● Here are some disadvantages of this structure: Poor integration with other divisions Competition between divisions Lack of communication between divisions Potential tax implications + Flatarchy ● In a flatarchy, there are little to no levels of management A company using this structure could have only one manager in between its executive and all other employees It is called a flatarchy because it is a hybrid of a hierarchy and a flat organization This type of organizational structure is used more by smaller companies since they have fewer employees, though it can be used in companies of all sizes While some companies grow out of this organizational structure, others continue to use it ● Here are some advantages of this structure: Cost-efficient, Fosters good communication, Higher employee morale, Faster decision making ● Here are some disadvantages of this structure: Potential employee conflict, Leadership confusion + Matrix structure 10 anticipate threats and to act against them before you become a victim of them and your growth stalls ● ● Think about the obstacles you face in getting your product to market and selling You may notice that quality standards or specifications for your products are changing, and that you'll need to change those products if you're to stay in the lead Evolving technology is an ever-present threat, as well as an opportunity! ● ● Always consider what your competitors are doing, and whether you should be changing your organization's emphasis to meet the challenge But remember that what they're doing might not be the right thing for you to So, avoid copying them without knowing how it will improve your position ● ● Be sure to explore whether your organization is especially exposed to external challenges Do you have bad debt or cash-flow problems, for example, that could make you vulnerable to even small changes in your market? This is the kind of threat that can seriously damage your business, so be alert 2.2.3 Business strategies theory Any company's success is defined by the effectiveness of the plan it employs A company's strategy shows how it expects to compete in a market and grow profitably Businesses sell goods and services in competitive markets all over the world, and in order to stay afloat, they must improve the value of their assets for their owners and shareholders This necessitates a strategy that assists managers in making informed decisions and effectively allocating resources to meet important objectives A business strategy is another name for this plan So, the question here is what is a business strategy? A business strategy lays out a plan of action for achieving an organization's vision and defined goals, as well as guiding decision-making processes to improve the company's financial stability in a competitive market And how is strategy different from tactics? Before we get into the specifics of developing a plan, it's critical to grasp the difference between a strategy and a tactic While these names are frequently used interchangeably, they refer to two distinct concepts: A strategy is a document that outlines an organization's long-term objectives and how it intends to achieve them In other words, it depicts the path that will lead to the achievement of the stated goal A tactic, on the other hand, refers to the exact activities used to achieve the defined goals in accordance with the strategy And the last question here is why is having a business strategy important? Any business's ability to succeed depends on the 14 existence of a strategy It essentially represents the firm's strengths and weaknesses, as well as how the organization intends to respond to threats and opportunities in the market in which it operates A strategy considers the available resources and how to best deploy them to meet the goals That's why a strategy is sometimes referred to as a company's lighthouse: it unifies the work of all functional areas and provides employees with a NorthStar to guide their everyday decision-making Let's imagine a company doesn't have a strategy for how it will compete in a market: the lack of such a blueprint would result in disorganized actions in each area, limiting the organization's overall effectiveness This incoherence inevitably leads to a loss of competitive advantage, which will be exploited in the market 2.2.4 Human resource management theory a Recruiting: The process of attracting individuals to apply for jobs that are open Vietnam airlines use external recruiting is get people from outside the organization to apply for jobs They use Advertising, union halls, campus interviews, employment agencies, etc After that they use Test is Ability, skill, aptitude, or knowledge tests are usually the best predictors of job success Tests must be validated, administered, and scored consistently The testing process must be the same for all candidates They have interviews –Interviewer biases can be overcome, and interview consistency and validity can be improved by training interviewers and using structured interviews b Education policy They will have training for the new candidates In this step, they teach operational or technical employees how to the job for which they were hired After that development teaching managers and professionals, the skills needed for both present and future jobs C Salary Bonus: They will care more, and motivate employees as use a Salary Bonus, Compensation, etc First, know more about salary bonus is determining compensation It has compensation This means the financial remuneration is given by the organization to its employees in exchange for their work We have Forms of compensation Salary is paid for the total contribution of an employee and is not based on total hours worked Incentives are special compensation opportunities that are usually tied to performance Besides, Purposes of compensation Provide a reasonable standard of living, Provide a tangible measure of an individual’s value to the organization 15 2.3 Critical analysis 2.3.1 Organization structure: Vietnam Airlines Organization Structure a General Meeting of Shareholders The General Meeting of Shareholders is Vietnam Airlines' highest decision-making body, comprising all shareholders with voting rights and working through Annual General Meetings of Shareholders, Extraordinary General Meetings of Shareholders, and written consultation 16 b Control Board The Supervisory Board is the body elected by the General Meeting of Shareholders to control, evaluate independently, objectively, and honestly all business activities, administration, and management of Vietnam Airlines, as well as the company's financial status, and to take responsibility in front of the General Meeting of Shareholders for completing assigned tasks c Board of Directors The Board of Directors is the governing body of Vietnam Airlines, having full authority on behalf of Vietnam Airlines to decide and perform the rights and obligations of Vietnam Airlines that are not within the authority of the General Meeting of Shareholders General manager The General Director is the legal representative of Vietnam Airlines and is the person who runs the day-to-day operations of Vietnam Airlines Function rooms Supporting committees of the Board of Directors are established by the Board of Directors, including Strategy and Investment Committee, Human Resources and Salary Committee, and Internal Audit Committee Committees work on a part-time basis The Corporation's specialized committees, according to their functions, perform the task of assisting the Committees established by the Board of Directors General assisting apparatus for the Board of Directors and General Director: are the Deputy General Directors, Chief Accountant, offices, professional departments, and equivalent agencies of the Corporation with the function of participating in advising and assisting the Board of Directors and the General Director in the management and administration of work The organizational structure of Vietnam Airlines' operational apparatus includes: The head office is located in Hanoi with 16 specialized departments; 33 foreign branches and representative offices; 14 affiliated units in the country In addition, Vietnam Airlines contributes capital to invest in subsidiaries and associated companies 2.3.2 Planning and decision-making process SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive situation and to improve strategic planning SWOT analysis analyzes internal and external factors, to predict future potential 17 A SWOT analysis is designed to simulate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization union needs to keep the analysis accurate by avoiding preconceived beliefs and instead focusing on real-life contexts For example, Viet Nam Airlines have Strength Large financial resources: According to Vietnam Airlines' consolidated financial statements for the three years of 2017, 2018 and 2019, the gross profit in each year is over 10 trillion VND Position of Vietnam Airlines in regional markets: Vietnam Airlines is the airline with the largest domestic flight network, in addition, it has a network of routes to exploit and cooperate with airlines, exploiting international passengers to go with domestic The domestic market is mainly competed by airlines such as VNA, JPA and Vietjet Air In which, JPA is a subsidiary of VNA, operating under the model of a low-cost airline, operating on regional domestic and international routes with low-cost competition and close coordination with VNA on products products and support the sharing of mining resources With its geographical location between Northeast Asia, Southeast Asia, Europe, South Pacific and China, Vietnam is considered as the gateway of regions By the end of 2014, Vietnam Airlines has an international route network of 57 routes to 29 destinations in 17 countries and territories, a domestic route network of 39 routes to 21 destinations, of which the international route network has been expanded rapidly expanding and developing in Europe (UK, Russia), Northeast Asia (Japan, Korea, China, Taiwan) and Cambodia - Laos - Myanmar (CLMV) sub-region According to VNA's statistics, in 2014, Vietnam Airlines' international passenger transport market share was maintained at 40.5% Weakness Fares are higher than competitors in the same industry and High maintenance costs with large number of aircraft The national airline Vietnam Airlines forecasts a loss of about 4,800 billion dong in the first quarter of 2021, in the first months of the year, the loss may reach 10,000 billion dong Currently, Vietnam Airlines' overdue debt is up to VND 6,240 billion Vietnam Airlines Corporation - JSC (Vietnam Airlines) has just announced its financial report for the second quarter of 2021 In the context of complicated developments of the Covid-19 epidemic, international routes cannot be reopened and domestic routes are also limited, Vietnam Airlines' revenue continues to be low at only 6,537 billion VND 18 Compared to the same period last year, Vietnam Airlines' revenue increased by about 9%, but if the air transport segment alone, the national airline's revenue decreased by more than 10% Meanwhile, the cost price of Vietnam Airlines exceeded 10,000 billion dong, up 13% over the same period As a result, Vietnam Airlines has a gross loss of nearly 3,500 billion dong, up 22% compared to the previous year's loss Opportunities VietNam Airline will be received some opportunities if they use of aircraft for cargo purposes and Improve image by supporting Government and health sector in transportation so that Improve the image by supporting the return of overseas Vietnamese Threat Vietnam Airline will solve some problem such as financial pressure, Ensure the safety of each flight during Covid-19 When the COVID-19 pandemic took place, the world economy suffered great damage, and the first industry that suffered the most was the air transport industry To prevent the rapid spread of the disease, countries have closed their borders, along with the suspension of international flights Solution In the foundation of the administrative model of decision-making lies the belief that decision makers often settle for a less than ideal solution because of time and motivation shortages Instead of seeking the best solution that maximizes the value of the decision, the decision maker accepts the first available 'good enough' alternative producing a value above the minimally acceptable The concept of settling for a less than perfect solution is called satisficing Facing complicated and prolonged developments of the COVID-19 epidemic, Vietnam Airlines has implemented response solutions, including: Cost reduction and savings (about VND 5,035 billion); Negotiating with partners on rescheduling and postponing payments (as of August 31, 2020, the payment schedule has been delayed/delayed by VND 3,678 billion; Reducing labor and salary costs (using 66-68 in 2020) % of labor, total labor cost reduced by VND 3,500 billion); Short-term loans to compensate for resource shortages; Restructuring loans So that Vietnam Airlines closely follows market developments and adjusts policies accordingly Prepare adjustment options depending on the translation 19 In 2021, in the face of the complicated situation of the Covid-19 pandemic, Vietnam Airlines develops a feasible plan with a consolidated revenue target of VND 37,364 billion, equivalent to 88.4% compared to 2020 To overcome the pandemic During the pandemic and seizing development opportunities, Vietnam Airlines aims to maintain operational safety, prevent epidemics, maintain the key position of Vietnam Airlines Group in the aviation industry, comprehensively restructure and carry out the transformation powerful number changer Vietnam Airlines continues to find all solutions to increase revenue and reduce and optimize costs (especially fleet restructuring, aircraft rental costs); restructuring the portfolio of capital investment outside the enterprise; consolidating the organization of blocks in the direction of streamlining the apparatus, reducing the middle class, streamlining the number of employees; ensure and improve service quality (firmly stars and progress to stars) 2.3.3 Business strategies Analyze the business strategy of Vietnam Airlines The mission of this part is we going to analyze the business strategy of Vietnam Airlines So we will focus on the development strategy of this company First of all, about the vision and mission of the company are company wants to keep its no.1 position as the leader of Vietnam's aviation group Vietnam Airlines aims to become a prominent Asian airline of choice for customers and to serve as the country's main mode of transportation as a flag carrier They seek to provide a broad and high-quality air transportation service that meets the needs of their consumers They also strive to provide a civilized and professional working atmosphere with a variety of career development options for employees They also aim to manage a successful business and provide long-term rewards to shareholders Second about the core values with the tagline "Safety is the first priority," and this is the foundation of all activities Maintain a customer-centric approach Their growth is inextricably linked to customer trust Employees are the company's most significant asset All remuneration rules are designed to be fair and worthy to sustain the organization's cohesion and solidarity The company's motto is "creativity," and they are continually innovating numerous business areas with a breakthrough mindset to achieve great success Airline group that is accountable They recognize that corporate social responsibility is a company practice that ensures all choices and actions are consistent with social sustainability About target in terms of revenue, becoming the third-largest airline group in Southeast Asia Vietnam Airlines is expected to be one of Asia's top ten favorite airlines In terms of scale, these are the top three airlines in Southeast Asia Vietnam Airlines will 20 improve its 4-star airline services and gradually achieve 5-star airline standards To become a comprehensive Digital Airline Group, implement a durable digital transformation Become one of Vietnam's most popular workplaces And now we going to with development strategy Concerning the route network, the domestic network is the strategic network Vietnam Airlines will continue to expand its route network from Ha Noi to Da Nang and Ho Chi Minh City, as well as promote new hubs like Hai Phong and collaborate on product offers with JPA and VASCO This is the principal operation network, generating significant revenues throughout Southeast Asia, Northeast Asia, and the South Pacific Vietnam Airlines continues to enhance flying frequency in order to improve the products of two flights per day each route using wide-body aircraft The company also conducts research to develop new routes from Central Asia to the Northeast Asia region, is considering launching the Ha Noi-Melbourne route, and is looking for opportunities to explore new destinations in Brisbane or Perth The sub-regional network comprising Cambodia, Laos, Myanmar, and Vietnam (CLMV): This is a network of significant political importance Vietnam Airlines must maintain effective competitiveness with the Bangkok (Thailand) gateway, produce more goods connecting tourist areas in Central Vietnam and Indochina, and collaborate with K6 to assist Vietnam Airlines products About Intercontinental long-distance flight network: This is a long-term strategic network that has been thoroughly examined and constructed While ensuring the overall operating effectiveness of the network, Vietnam Airlines is picking a few more European destinations and evaluating new routes to America's Los Angeles or San Francisco Concerning Fleet Strategy Wide-body aircraft: continue to run the current fleet for Europe, Australia, and Northeast Asia, but consider investigating new routes to America to ensure business efficiency Narrow-body aircraft: service the domestic market as well as foreign routes with low capacity/short-haul (less than hours of flying time) Regional jets or turboprops: sustain routes using ATR 72 aircraft, run niche markets (short routes, small capacity, airports with inadequate infrastructure, etc.), research new types of aircraft to replace ATR 72 Concerning investment Strategy Along with the fleet investment, Vietnam Airlines is working to strengthen aircraft operation and maintenance capacity, as well as IT infrastructure The intention is to spend 50% of the investment capital on the fleet and 50% on other issues Concerning capital strategy Using a combination of capital sources to ensure the mobilization of sufficient financial resources for investment needs; based on the premise of maintaining a safe debt-to-equity ratio and low financial expenses Vietnam Airlines use the following solutions to carry out this strategy: I Increasing owner equity by share issue to increase charter capital; increasing share premium and operational profit; (ii) Obtaining funds from capital markets through a commercial loan, bond issuance, and export credit loan (if eligible); and (iii) Using the Sale and Leaseback structure.With a very clear and strong approach, they would have numerous accomplishments in 2019 when the first "super aircraft" Boeing Dreamliner 787-10 welcome get Skytrax 4-star airline standard certification for consecutive years to become one of FORBES VIETNAM'S 21 TOP 50 BEST LISTED COMPANIES when have become VIETNAM'S LARGEST AIRLINE FLEET with the fleet surpassing 100 aircraft 2.3.4 Human resource management A Labor force Overview According to the labor structure information table on March 31, 2015, from Vietnam Airlines, the total number of employees is 10, 244 people Among them, 55% are male and 44% female In terms of educational attainment, 45% have university and post-graduate degrees, 18% are college and intermediate, 32% are skilled workers and 5% are unskilled workers The total number of indefinite employees is 7,948, accounting for 78% of the total number of employees and the rest are fixed term Regarding labor quality, Vietnam Airlines' workforce is basically young: 72.5% are under 40 years old, of which under 30 years old account for 32.6% (data 31/03/2015) Events due to Covid-19 Due to the impact of Covid 19 in 2020: Mr Duong Tri Thanh, General Director of Vietnam Airlines said that due to the impact of the Covid-19 epidemic, over 10,000 employees had to stop working (50%) and 100 employees had to stop working % of employees at this unit have to reduce wages As of June 1, 2018, the number of pilots (pilots) of Vietnam Airlines is 1,138 people, including 853 Vietnamese pilots (including 51 pilot trainees who are training for conversion) and 285 foreign pilots (25%) Vietnam Airlines Corporation currently has more than 20,000 employees, including 1,200 pilots, 2,500 aircraft engineers, and 3,000 flight attendants This also means that the number of employees of Vietnam Airlines must stop working up to more than 10,000 people (2020) With the impact of the epidemic, the airline is forced to restructure and make big changes from 2021 B Recruitment: Vacancies: ● Pilot - Flight Attendant - Remaining Labor 22 For the position of a flight attendant, the pre-training requirements are quite strict as follows For applicants new: - Being a Vietnamese citizen with Vietnamese nationality - Female aged 20 to 26; height from 158 cm to 175 cm - Male from 20 to 28 years old; height from 168 cm to 182 cm - Arms reach (when on tiptoe): at least 212 cm - Weight appropriate for height - Graduating from high school or higher, Priority is given to graduating from high school, college, university - Health: Meet the health requirements of flight attendants - Clear background - Balanced appearance, good communication skills, confidence, suitable for service professions - English: minimum: TOEIC 600 points or valid TOEFL it (68), TOEFL cbt (190), IELTS (5.5) certificates - Priority is given to candidates who have a second foreign language degree (Chinese, French, German, Russian, Japanese, Korean) Pilots will be trained before working Criteria for pre-qualification of PCCB trainees: - Be a citizen of the Socialist Republic of Vietnam - High school graduate or higher - TOEIC 700 or higher or score 6.0 or higher (certificate of valid) - Age from 18 to 32 years old - Height: from 1m65 (male), from 1m60 (female) - Weight: from 54kg (male), from 48kg (female) - Meet the health standards for civil pilots of the Civil Aviation Administration of Vietnam C Training policy + General: To mobilize social resources for training, since 2014, Vietnam Airlines has implemented a policy of socializing pilot training (Vietnam Airlines has launched training programs and orientations) quality basic pilot training centers, trainees pay their own training costs, and Vietnam Airlines recruits when students completed the course) This is a fundamental change in the training activities of Vietnam Airlines, contributing to saving training costs 23 The regimes and policies for employees are always guaranteed by Vietnam Airlines at the most reasonable level In the period 2011-2015, Vietnam Airlines has implemented rounds of salary reform, contributing to taking care of the material and spiritual life of employees The regimes on salary, insurance, protection, sightseeing, convalescence are fully implemented Accordingly, Vietnam Airlines has gradually improved its salary policy in the direction associated with productivity and work efficiency Recent campaigns: Implement the 2020 Business Plan on professional training and skill improvement for employees From May 11 to May 13, 2020, at Noi Bai International Airport, leaders of the On-board Service Center - VIAGS NBA directly taught classes to impart Safe Driving Skills to 100% TTB operators Continuing to promote training to prepare service resources when output recovers, the Domestic Team of the Passenger Service Center organized 03 classes to refresh travel documents directly (Grade 24-25/ 4, Grade April 27-28, Grade 1-2/5) with nearly 50 turns of people (Supervisor & staff of the domestic counter procedure team) under the teaching of Tourism Traffic Teacher Tran Ngoc Tram Anh - Captain of the C-VIP Team of the Domestic Team Includes the following contents: ● Consolidation of knowledge about GTDL ● Refresh knowledge of looking up TIMATIC, Quick reference ● Lessons learned from events related to tourism in the first quarter of 2020 and points to note policy changes when serving the Covid19 period C Compensation: At fine airline: The regimes and policies for employees are always guaranteed by Vietnam Airlines at the most reasonable level In the period 2011-2015, Vietnam Airlines implemented rounds of salary reform, contributing to taking care of the material and spiritual life of employees The regimes on salary, insurance, protection, sightseeing, convalescence are fully implemented Accordingly, Vietnam Airlines has gradually improved its salary policy in the direction associated with productivity and work efficiency The average salary of some production positions in 2014 is as follows: - Pilot: 83.19 million VND/person/month - Flight attendants: 20.21 million VND/person/month employees: - Remaining labor: 11.22 million VND/person/month 2.3.5 Challenges 24 + When the COVID-19 epidemic broke out, it wreaked havoc on the global economy, but the air transport industry was the first to be impacted In the backdrop of the global aviation industry's crisis, the COVID-19 epidemic has had an influence on Vietnam's aviation sector as well The Ministry of Planning and Investment stated in its report on business development in 2020 and the first five months of 2021 that the aviation industry had the most serious decline, with demand for air transportation in 2020 decreasing by 34.5% to 65.9%, and revenue of aviation enterprises decreasing by 61 percent compared to 2019 + Financially, cash and accounts are in good shape However, the epidemic has "pulled" the aviation industry down 3-4 years and made the accumulation of 4-5 years ago of this unit considered to be zero + Almost all aircraft are being decommissioned, with just 1-2 percent of total aircraft being used (using 8/106 aircraft) + The national carrier Vietnam Airlines expects a loss of around 4,800 billion dong in the first quarter of 2021, and a loss of 10,000 billion dong in the first six months of the year With the present flight schedule and pandemic scenario, Vietnam Airlines' General Director estimates that the airline's supply load would be reduced by around 60% in 2020, with income falling by VND 50,000 billion, or 65 percent, compared to the plan Currently, Vietnam Airlines' past-due debts total VND 6,240 billion; the company is in dire straits, on the verge of bankruptcy, and commercial banks have yet to see the government's support package of VND 12,000 billion, so they are refusing to disburse funds or extend or grant credit lines to Vietnam Airlines Recommendation + Aviation is a vital business, not only in terms of economic development, but also in terms of national security, defense, and sovereignty Prior to the COVID-19 epidemic, the global aviation sector was experiencing rapid growth However, when the COVID-19 epidemic struck, the aviation sector was seriously harmed, and governments all over the world were forced to scramble to find solutions to save their own aircraft industries In addition, my organization offers some suggestions for the Vietnamese aviation business and airline + To overcome the pandemic and exploit development prospects, Vietnam Airlines must strive to preserve operational safety, avoid epidemics, retain the Group's leadership position in the aviation sector, and reorganize comprehensively and effectively + Need to find all solutions to increase revenue and reduce and optimize costs (especially fleet restructuring, aircraft rental costs); restructuring the portfolio of outside capital 25 investment; consolidating the organization of blocks in the direction of streamlining the apparatus, reducing the middle class, and streamlining the number of employees; ensuring and improving service quality + To prevent losses, the company actively seeks the cooperation and help of its partners to negotiate reductions, extensions, postponement of payments, elimination and drastic cuts of expenses To repay the debt, the total cost reduction and savings through homemade solutions is estimated to exceed VND 6,800 billion by 2021 In addition, aircraft older than 12 years old will be sold and replaced with new aircraft to increase competition in the region + Vietnam Airlines must be flexible in its international and local flight arrangements, taking use of recovery chances from disease management, immunizations, and electronic health passports The company will continue to operate foreign flights to return individuals to their homes, as well as oversee the piloting of electronic health passports In the home market, Vietnam Airlines develops a plan to fully repair the route network for the post-epidemic era, as well as identify new chances to start new local routes + The government should provide maximum support and create the best conditions for businesses to regain domestic market share, such as recommending discounts, price extensions, and even price exemptions for state agencies and businesses in the industry, as well as working with banks to develop preferential loan packages for airlines that can afford to continue operating =>>> Proactively implement synchronously many solutions to respond to the pandemic, ensuring operation maintenance, such as: adjusting production scale according to market; implementing labor and salary solutions appropriate to business scale; cutting costs, thoroughly saving, negotiating extension, delaying payments, restructuring loans, and increasing the use of short-term loans Increase income by taking use of every conceivable opportunity, with an emphasis on freight transportation, increasing the number of journeys for people to return home, and transporting specialists Conclusion Reference Some problems arising from the crisis caused by the impact of the COVID-19 pandemic http://baochinhphu.vn/Utilities/PrintView.aspx?distributionid=435213 10 Vietnam Airlines reported a loss for the 6th quarter in a row 26 11 https://cafebiz.vn/vietnam-airlines-bao-lo-quy-thu-6-lien-tiep-nang-lo-luy-ke-len-gan-1780 0-ty-dong-chinh-thuc-am-von-chu-so-huu-20210831085651175.chn 12 13 Crisis of the aviation industry in the epidemic storm 14 https://dangcongsan.vn/phong-chong-dich-covid-19/khung-hoang-nganh-hang-khong-trong -con-bao-dich-584195.html 15 16 Vietnam Airlines overcame the Covid-19 storm with self-made solutions 17 http://spirit.vietnamairlines.com/vi/emagazine/tin-tct-105/vietnam-airlines-vuot-bao-covid19-bang-cac-giai-phap-tu-than-11195.html 18 https://www.indeed.com/career-advice/career-development/organizational-structure-definiti on-and-types 19 https://www.investopedia.com/terms/o/organizational-structure.asp#:~:text=An%20organiz ational%20structure%20is%20a,between%20levels%20within%20the%20company 20 https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Investor-Relations/Tho ng-Tin-Co-Dong/1banthongtintomtatvecongtydaichung.pdf?fbclid=IwAR02BXwaZ1hk-U QIr4bs8RewCv2iqn78kN-O6VKPzkd4dJUiL4rRL5ldIKU 21 22 https://www.vietnamairlines.com/vn/vi/vietnam-airlines/career-with-us/information/V I-CREW-tuyen-dung-tiep-vien-hang-khong 23 http://spirit.vietnamairlines.com/vi/tintuc/tin-tct-105/chinh-phuc-bau-troi-cung-vna so-tuyen-hoc-vien-phi-cong-co-ban-4626.html 24 http://spirit.vietnamairlines.com/vi/tintuc/tin-don-vi-106/viags-tiep-tuc-day-manh-con g-tac-dao-tao-chuan-bi-nguon-luc-phuc-vu-7416.html 25 https://viettimes.vn/bao-cao-khan-cua-vietnam-airlines-ve-tinh-hinh-va-che-do-chinhsach-cho-phi-cong-post81293.html https://consulterce.com/business-strategy/ https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Investor-Relations/Bao -Cao-Thuong-Nien/new-bao-cao-thuong-nien-2019.pdf https://en.wikipedia.org/wiki/Vietnam_Airlines https://www.vietnamairlines.com/vn/vi/vietnam-airlines/about-us/ https://www.etrip4u.com/logo-vietnam-airlines-lich-su-hinh-thanh-va-y-nghia Fundamentals-of-Management-8th-Edition-Ricky-Griffin 27 28 ... of member companies: group subsidiaries in which Vietnam Airlines owns 100% of the stock, group subsidiaries in which Vietnam Airlines owns more than 50% of the stock, and group subsidiaries in... Recommendation Conclusion 4.2 Summary of contribution 4.2 Limitation Introduction 1.1 Pupose of group assignment Vietnam Airlines is a regional and international airline that is facing a number of...TABLE OF CONTENT Introduction 1.1 Purpose of group assignment 1.2 Brief introduction of the company Literature review and critical analysis 2.2