Some solutions for developing aviation services of Vietnam Airlines Corporation until 2015

Manage and supervise all activities of the Corporation and its subordinate agencies.

- There needs to be a clear distinction and then clear regulations on the functions and duties of the Chairman of the Board of Directors and the General Director in accordance with international practice. Currently, according to government regulations for corporations, the Chairman of the Board of Directors and the General Director jointly sign to receive capital, land, resources and other resources assigned by the State to the Corporation. According to regulations, the Board of Directors has the right to appoint and dismiss the General Director, but in reality, no Board of Directors has actually had the right to use the General Director's labor because they jointly sign to receive capital, resources... so of course they also represent the State as owners. Therefore, it is necessary to improve the management and operation efficiency of the Corporation by the Board of Directors and the General Director to avoid the situation of decentralization and localization in the Corporation.

● Strengthen technical facilities and modernize aviation technology by promoting investment.

Talking about aviation means talking about an industry with high-tech, modern equipment with all stages from management, ground operations to air exploitation. TCTHKVN is facing the reality that the aircraft fleet is not modern, the technical facilities are backward. Meanwhile, it has to compete with powerful airlines in the region as well as in the world. Therefore, if only using the current type of aircraft with backward technical facilities, transportation activities will not be highly effective and will increasingly lose customers, especially international customers. Therefore, the need to innovate technology to meet international standards is especially important in attracting customers and improving commercial efficiency. In addition, updating information and processing data in the Corporation requires high accuracy, speed and timeliness. Therefore, it is necessary to increase investment in technical facilities, especially in modernizing the aircraft fleet. In the conditions of a commodity production economy, to carry out

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All production and business activities need to carry out investment activities. Investment activities play a role in maintaining and expanding the potential for production and business, services and daily life. Investment activities are a condition for developing production and business of enterprises, to create infrastructure for the economy. Compared to other airlines in the world, the technical infrastructure, especially the fleet of aircraft of the Corporation, is still very small.

Of the 70 aircraft in use, more than half are leased, so the rental cost is quite high. In addition, there are no private cargo planes, but only combined passenger and cargo planes. In this situation, the Corporation needs to buy modern aircraft to expand its international air transport business to potential markets such as the US, Canada, Europe, etc.

The aircraft maintenance and repair facilities are not yet modern, the ground service equipment has been partly renovated but the quantity is still small, not synchronized, the airport is still small. Therefore, to help the Corporation quickly escape from backwardness, create prestige and dominate the market, investment is a highly effective measure.

Investment to meet the development requirements of the Corporation in both depth and breadth is the priority goal from now until 2015, prioritizing investment in technological innovation, first of all, the modern aircraft fleet and technologies in the synchronous air transport chain, aircraft repair facilities, pilot training centers and aviation-specific staff, investing in effective business areas, high profits and high capital recovery ability, using many capital sources to implement investment projects including: accumulated capital from within the unit, within the Corporation, borrowed capital, joint venture capital, and association. In the initial stage when accumulated internal capital is still low, calculate the use of borrowed capital and actively call for investment capital from foreign countries and domestic units, ask the state to issue corporate bonds or project bonds. For

With dependent accounting units, select some units to gradually move from cost centers to profit centers.

Investment projects must comply with State regulations and strictly calculate economic efficiency indicators and capital recovery period.

Implement the strategy of technological innovation, gradually replace old technology, consider it as the industrialization and modernization policy of the Corporation. From now until 2015, it is necessary to review and evaluate old technology means to justify continued use and effective replacement, new investment must definitely be the latest technology level. Modernize the aircraft fleet by establishing a project to purchase new modern aircraft.

Along with the development of a modern fleet of aircraft, investing in modernizing aircraft maintenance facilities, ensuring synchronization and high economic efficiency. Developing the application of information technology in production, business and management, operating in the direction of organizing a computer network throughout the Corporation, first of all in the fields of trade, market, operation, engineering, finance and management. Modernizing technology and ground service facilities at airports.

● Improve the professional qualifications of the staff in the Corporation.

People are the key factor in determining the development of any country as well as any business. Doing business in a volatile international economic environment, with information changing every hour, requires business staff to be dynamic, creative, and regularly trained in professional skills to be able to use modern technology, grasp market fluctuations and respond flexibly to those fluctuations. Especially in international air transport business, which is a special business field, it depends highly on service quality and interaction between service staff and customers.

Therefore, the first task of TCTHKVN is to build a team of qualified staff to adapt to new conditions.

Up to now, Vietnam Airlines has had nearly 90 routes to domestic airports and countries around the world. From now on, the industry will continue to reach further markets. The goal is to ensure meeting domestic exchange needs, stabilizing and developing the domestic flight network, and expanding international routes. To develop the international flight network, the Corporation is gradually putting more new generation modern aircraft into operation. Synchronizing with the means are people, especially the team of pilots and flight attendants. The flight attendant team can be considered the image of aviation. On a flight, flight attendants are always the ones who directly bring joy, comfort and necessities to passengers throughout the flight. To have a team of flight attendants and pilots that meet all those requirements, Vietnam Airlines has constantly strengthened its organization, increasing both quantity and quality. Previously, the crew of pilots and flight attendants were only familiar with the old Soviet aircraft and mainly served on domestic routes. Now, facing a new schedule, mainly from Asia to Europe or America, crossing the continent to many countries with modern aircraft,

This problem needs to be resolved quickly by:

● Reforming human resource management structure.

TCTHKVN is a state-owned enterprise, protected by the state, so the power structure is still centralized. Meanwhile, a customer-oriented company has a very important role for its members. The organization will not concentrate power on one person, but should follow a decentralized trend with a honeycomb-like information network structure, so that responsibility will be shared equally among each member of the company. To become a customer-oriented enterprise, it is necessary to have a major change in the distribution of power to frontline employees so that they can address the needs and situations of each customer. Reality shows that

Customers do not care who is the chairman of the board, who is the director, or any other leader, they only care about the benefits that the frontline employees representing the company have brought to them. To meet that, frontline employees need to be properly trained, qualified, and have the courage to solve the special needs of customers with speed, accuracy, and safety.

Management training for leaders: Develop a long-term staff planning strategy. Invite foreign and domestic experts to teach programs according to job needs. Send staff to study abroad. Training includes three areas: theoretical level, professional level and management skills.

The Corporation needs a group of good experts, experienced in the field of air transport business management, specializing in research to serve the training. In addition, it is necessary to classify and classify the subjects that need to be trained, including those who have not been trained, before promotion, and those who are in office. For those who are in office, they must be trained through a basic course on management. The time and level must be suitable for the future working position. For those who are in office, regular supplementary training must be conducted regularly every year to provide new knowledge about management science, new information about economic, political and social developments. Update situations and measures to solve practical situations.

Currently, the main source of human resources for the aviation industry is graduates from the Aviation School, students from the University of Science and Technology, University of Foreign Languages, Economics... However, this workforce must undergo 3-6 months of training before taking on official jobs that the industry needs, so the Corporation still has to retrain them to suit the actual work. Therefore, TCTHKVN should have policies combined with training plans of Universities and Vocational High Schools to train

skilled employees for themselves, when they graduate they can start working immediately without having to go through a retraining period.

It is necessary to quickly develop a team of skilled pilots and aircraft repairmen, reduce dependence on foreign factors, reduce operating costs, and be proactive in maintenance to contribute to improving operational safety. Regularly organize on-site training courses but must be linked to the production plan, not affecting the operational plan.

- Ticket offices are the place to show the face of an airline to customers, so they must be neatly arranged, clean, and have modern and convenient sales equipment, creating speed and convenience for customers. Implement a strict recruitment policy to be able to recruit qualified employees who meet professional requirements. In addition, there is a worthy treatment policy for those who work in sales and distribution of aviation products and services.

Among the above solutions, each solution has a certain role, but the capital solution is the most important solution, because if the capital problem is solved, the biggest and most difficult problem of the Vietnamese aviation industry will be solved. On that basis, Vietnam Airlines Corporation will gradually solve other difficulties and problems in terms of facilities, fleet development, human resources and equipment....

CONCLUDE

Vietnam's air transport services have begun to develop in recent years and are growing stronger and stronger. This is the inevitable result of economic development as well as the strengthening of relationships and rapid innovation of the Vietnamese aviation industry, especially the National Airlines Corporation in recent years.

Air transport services are a new issue and still have many shortcomings for the world in general and for Vietnam in particular. Our country is also very interested in the development of this field.

Through the content structure of this thesis, I have researched, analyzed, compared and clarified the following issues:

- General overview of air transport services, characteristics and factors affecting air transport services.

- The formation and development process of the Vietnamese aviation industry and of Vietnam Airlines Corporation shows the role of the aviation industry in the national economy.

- Focus on analyzing the current status of air transport service business activities of Vietnam Airlines Corporation, presenting the achieved results and the main shortcomings that need to be overcome.

- Research the development orientation and strategy of Vietnam Airlines Corporation, thereby making forecasts about the development of the air transport market in the coming years.

- Propose some feasible solutions to promote the development of Vietnam's air transport services.

Through the stages of development, Vietnam Airlines Corporation has not only affirmed its position in the international arena by standing firm to survive but also increasingly developed and achieved encouraging achievements. Hopefully, with the efforts to learn and innovate, Vietnam Airlines Corporation will have a worthy position in the region and the world in the future.

REFERENCES

1. Hoang Van Chau (2003), Transport - import and export goods delivery , Science and Technology Publishing House, Ho Chi Minh City.

2. Associate Professor, Dr. Nguyen Huu Khai, Dr. Vu Thi Hien (2007), Vietnam's service industries - Competitiveness and integration.

3. Associate Professor, Dr. Nguyen Hong Dam (editor-in-chief), Associate Professor, Dr. Hoang Van Chau, Associate Professor, Dr. Nguyen Nhu Tien, Dr. Vu Si Tuan (2003), Transportation and Delivery in Foreign Trade , Transport Publishing House, Hanoi.

4. Vu Thi Hien (2005), Vietnam's service import and export in the integration process - Faculty of Economics, Foreign Trade University.

5. Vietnam Civil Aviation, Historical Milestones (2002) . National Political Publishing House.

6. Pham Vu Hien (2001), “ Synchronization and development orientation of Vietnam's civil aviation industry ” , Vietnam Aviation Magazine - No. 132 published in June 2001.

7. “ Vietnam Airlines increases fleet” - Newsletter No. 83, July 2004, Vietnam Airlines Corporation.

8. Financial reports for 2002, 2003, 2004, 2005 , 2006. Finance and Accounting Department, Vietnam Airlines Corporation.

9. Hot data 2006. Market planning department, Vietnam Airlines Corporation.

10. Report on exploitation results in 2004 and 2005. Market planning department, Vietnam Airlines Corporation.

11. Plan for 2002/2004/2006 - Vietnam Airlines Corporation.

12. Long-term development strategy to 2010 of Vietnam Airlines Corporation - Board of Directors of Vietnam Airlines Corporation (drafted in 2001).

13. National socio-economic development strategy to 2020.

14. Transport development strategy to 2010, orientation to 2020 (2005)

- Ministry of Transport