E-commerce application solutions in the aviation industry through analysis of Pacific Airlines' e-commerce application model - 10


specific activities such as the use of electronic documents in online commercial activities, the responsibility of intermediary agencies, legal protection of information networks, etc.

The reason for the need for more detailed guidance is that in reality, although recognized by law, the validity of electronic documents is not easily accepted. The case of selling electronic tickets by Vietnam Airlines is an example. Previously, airline tickets (ticket stubs) were considered a type of invoice, but when switching to selling electronic tickets, there will be no ticket stubs, instead there are electronic documents stored in the airline's information system. Although the law considers electronic documents to have the value "as a document" and "as an original", in reality, the General Department of Taxation is not ready to accept these electronic documents, which is why Vietnam Airlines is required to still include a paper receipt when selling electronic tickets. This requirement makes electronic tickets only a half-hearted solution, because it is contrary to the goal of reducing management costs associated with paperwork and makes it difficult to sell tickets entirely online. However, Vietnam Airlines is only the first case. The difficulties of this business are the difficulties that businesses wanting to implement e-commerce in the future will encounter if not resolved now.


2. Promote training and propaganda about e-commerce.

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In addition to training activities for students in the formal education system, it is necessary to direct ministries and branches to coordinate with social organizations, trade promotion organizations and professional associations to implement training and fostering to improve the level of e-commerce for state management officials and enterprises. The initial training content is to provide students with both the benefits of e-commerce and the necessary conditions to participate, then they can go into teaching work, contributing to promoting the benefits of raising awareness of businesses on e-commerce issues. For the target group of leaders


E-commerce application solutions in the aviation industry through analysis of Pacific Airlines' e-commerce application model - 10

Management needs to provide basic knowledge about State management of e-commerce and the roles and tasks of State agencies.

The Ministry of Education and Training shall preside over and coordinate with the Ministry of Science and Technology, relevant ministries and localities to develop and organize accelerated training programs for IT and e-commerce experts. Develop e-commerce processes, operations and techniques to retrain and coach staff of enterprises, agencies and organizations participating in e-commerce. Plan to invite experts and organize e-commerce skills training courses for staff in agencies and enterprises.

Promote other forms of propaganda, dissemination and training, especially the use of mass media and the Internet. Use newspapers, radio and television as channels to disseminate information and widely propagate e-commerce among the people to build advanced shopping habits through e-commerce applications. Special attention should be paid to the young generation because this is the group that has the opportunity to access the latest technologies and has the ability to grasp quickly.

There should be measures to popularize information technology and support computer systems to facilitate people's direct access to electronic media. There should be a plan to make information technology a compulsory subject and integrate it into other subjects in general schools.


3. Invest in building and upgrading national information technology and communications infrastructure to be on par with other countries in the region.

The State needs to issue policies and measures to encourage investment in technology development to serve e-commerce activities, common standards used in e-commerce, reduce import taxes on information technology equipment and have preferential policies for domestic information technology equipment manufacturers. Issuing standardization in the field of information technology is very necessary.


to lay the foundation for the widespread application and development of information technology. The government needs to quickly implement the “strategy for the application and development of information technology for natural resources and environment until 2015 and orientation to the end of 2020”. Complete the computerization of banking, finance, post and telecommunications, electricity systems, etc. Reasonable investment in scientific and technical research sectors, creating a foundation for the construction and manufacturing of technology to serve development.

The strong application of e-commerce has an indispensable contribution from the Internet. However, the number of people with access to high-speed Internet in Vietnam is not much, and the transmission quality is sometimes low. Therefore, to widely apply e-commerce, there must be policies to encourage and support enterprises providing Internet services in Vietnam (ISP).

Upgrading the national information and communication technology infrastructure to the level of average countries in the region is essential to promote the effectiveness of information technology infrastructure. The Ministry of Science and Technology is in charge of developing national information infrastructure standards to facilitate connection and interoperability with the information technology infrastructure of ASEAN and other countries.


4. Ensuring national security and information security in e-commerce.

This is always the top concern of any individual or organization when participating in e-commerce. Therefore, to ensure information confidentiality, the State needs to issue a national cryptographic policy for e-commerce, issue standards on information encryption keys, digital signatures, authentication, etc. and establish information technology centers in conjunction with research institutes and universities to build public key cryptographic infrastructure. However, security technology is changing very quickly and the Government should let the private sector take the lead in developing secure technology to keep up with the modern level.


In addition, it is also necessary to improve the legal system on preventing and handling cybercrime. There should be clear regulations on the content of information that is allowed to be exchanged over the Internet, and laws on data protection to prevent information from being transmitted to places that do not have adequate means to protect the information.


5. Develop electronic payment systems, use credit cards in e-commerce and organize electronic certification agencies.

The Government needs to issue legal documents related to electronic payments as a legal basis for money transfer, payment transfer, card use, etc. in e-commerce transactions. In particular, it is necessary to soon complete the Law on Electronic Payments and the Decree on Electronic Payments in the banking sector, documents on inter-bank payments, and regulations on the relationship between parties in electronic payment operations.

It is necessary to study and develop a plan to issue electronic money to serve e-commerce transactions. Within the scope of credit institutions, it is necessary to have an investment program and organize a payment accounting system according to the model of centralized accounts. In addition, it is necessary to build a payment gateway to facilitate the development of e-commerce, establish a center to promote and support techniques and technologies in e-commerce transactions.

Along with investing in infrastructure for the electronic payment process, it is also necessary to promote security and safety technology for this process. The State needs to direct appropriate ministries and branches to research and build a good security system, ensuring the confidentiality of information for all parties. In ensuring safety, the role of an intermediary organization in charge of authentication is also needed. The State needs to soon establish an authentication center or license qualified authentication organizations to operate to authenticate electronic signatures for all parties.


Finally, it is necessary to propagate to people and businesses to be aware of the benefits of cashless payments. Popularize the methods of use and encourage economic participants to have the habit of paying with cards and accounts through electronic means.


II. Micro solutions.

1. For consumers

Obviously, in the application of e-commerce in the aviation industry, customers are an extremely important link. Therefore, in addition to solutions from the Government, there are also solutions from those who affect the operation of the industry when applying e-commerce.

Online shopping is no longer strange to netizens today when e-commerce websites were born, and in this field is buying airline tickets on the airline's website. Therefore, to ensure safety when shopping online, customers themselves need to be aware and equip themselves with knowledge to prevent the risk of losing personal data.


2. For Airlines.

2.1. Develop a plan to approach and develop e-commerce.

This step is even more important for newly established airlines that also intend to implement e-commerce. First, airlines need to research and develop a strategy to participate in e-commerce, analyze their business direction, segment the market and target customers, determine the application model and implementation strategy, and then develop a plan to implement e-commerce.

Airlines need to research the e-commerce market in the aviation industry, such as researching potential customers online, to see which services are suitable for business. For example, Jetstar Pacific Airlines has a plan to


Plan to cooperate with a transport company to provide online car rental services, this is a good and new form, but in Vietnam, the demand for car rental is not much and when booking a car online like that, it requires the transport company to have good technology infrastructure conditions and adapt to the Company, only then can the cooperation between the parties be long-term and good. Analyze the e-commerce market of the domestic and foreign aviation industry at present and in the future. When researching the market, it is necessary to find out who the competitors are, that is, to find out their presence online, their technology level, business plans and marketing plans, investment directions of competitors, the current level of e-commerce application of competitors... This research will help the Company determine its competitive advantages, thereby having a basis for determining specific steps to deploy e-commerce applications.

Next, the airlines need to clearly define the purpose of applying e-commerce in each stage: exploring online business channels, raising awareness and understanding of e-commerce, learning about the B2C e-commerce model because this is the model that the airlines will apply when applying e-commerce (in Vietnam, conditions do not allow the implementation of B2B e-commerce applications in the aviation industry as analyzed in the section on E-commerce applications in the aviation industry in the world because Vietnamese aviation enterprises do not have enough necessary resources and the demand is not large.), providing customers with information about the airline's products and services, implementing online marketing, building an electronic payment system, and finally training human resources, improving the management structure to suit the new business environment.


2.2. Investing in building solid technical infrastructure

As presented in the previous section, due to the increasing demand for travel of the people, the improvement of people's lives, the demand for airlines is increasing, especially low-cost airlines because they are suitable for the income of the majority of people. Therefore, having a good network system, ensuring


The Company's website visitors are stable, the server system is good, and there is no overload...

Businesses need to always update new technologies by having a suitable investment budget for technology, creating a solid technical infrastructure for their business, so that the implementation of new e-commerce is easier. Pay special attention to security technology because technology changes every day, the level of technology crimes is increasingly sophisticated, updating news regularly to have preventive measures is extremely necessary.


2.3. Build, maintain and upgrade e-commerce website.

Building a website is an indispensable step when doing business on the Internet. Nowadays, people consider it natural for businesses and airlines to have their own websites, even if they don't have one or if they have one but it's not attractive, people can immediately doubt the quality of the airline. Therefore, the website cannot stop at providing information about the airline, introducing flights, services, customer care policies, but needs to be completely upgraded into an e-commerce website equipped with tools to conduct online transactions to promote the airline's brand, attract and increase customers. Airlines can find an e-commerce service company for advice and ask them to design a website for the highest economic efficiency.

Maintaining a website is maintaining an online marketing channel with online customers. Companies need to have measures to maintain, strengthen and develop the website, and have a plan to invest in human resources to develop an effective online marketing channel.


2.4. Marketing e-commerce website.

The cost of website marketing is not high, all companies can apply it. Therefore, e-commerce has fierce competition, to be successful in e-commerce, each company needs to create its own unique features for its website, consider


Website as an online tool to attract customers' attention to the Company. It is necessary to focus on marketing for the website and take advantage of the Internet as a tool to serve learning, research, market observation and customer tastes, the hotel can take the following measures:

- Use online advertising services on travel websites and online newspapers.

- Register website address, keywords, and website fields on famous search engines such as Yahoo, Google...

- Actively participate in e-commerce portals on hotel tourism services, typically www.hotels.com.vn because tourism always goes hand in hand with aviation, air transportation is always favored by passengers because it is fast and saves time. Therefore, tourism and aviation have always had a close relationship. Or airlines can even promote their websites through www.asiarooms.com - a website specializing in providing tourism information, booking tours, and booking hotels in Australia, Thailand, Singapore and Vietnam. Therefore, if airlines market their websites on this site, they will reach both domestic and foreign customers, a very large customer base.

If companies want to use e-commerce as a marketing tool to create a professional image in the eyes of customers, they can outsource this task to a company specializing in online marketing.


2.5. Restructuring enterprises based on e-commerce application.

Due to the application of e-commerce and the addition of new technologies, there will inevitably be changes in the way of doing business and organizational structure. Companies need to rearrange their organizational structure to quickly adapt to the requirements of new technologies.

First, a department must be established to deploy e-commerce applications. This department can be located in the computer room, planning room, business room, etc.

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