page_title: Vietnam Airlines
section_title: Beginnings
hierarchical_section_title: Vietnam Airlines / History / Beginnings
caption_attribution_description: English: At Hanoi City
context_page_description: Vietnam Airlines is the flag carrier of Vietnam. The airline was founded in 1956 and later established as a state-owned enterprise in April 1989. Vietnam Airlines is headquartered in Long Biên District, Hanoi, with hubs at Noi Bai International Airport and Tan Son Nhat International Airport. The airline flies to 64 destinations in 17 countries, excluding codeshared services.
  From its inception until the early 1990s, Vietnam Airlines was a minor carrier within the aviation industry as it was hampered by a variety of factors including the socio-economic and political situation of the country. With the government's normalization of relations with the United States, the airline was able to expand, improve its products and services, and modernize its ageing fleet. In 1996, the Vietnamese government brought together 20 service companies to form Vietnam Airlines Corporation, with the airline itself as the centrepiece. In 2010, the corporation was restructured into a limited liability company and renamed Vietnam Airlines Company Limited. A seven-seat management board, members of which are appointed by the Vietnamese Prime Minister, oversees the company.
context_section_description: Vietnam Airlines has its origins in January 1956, when it was established by the North Vietnamese government under the name Vietnam Civil Aviation following the nationalization of Gia Lam Airport. It was instituted after the government signed the Decree No. 666/TTg. The airline was created as part of the air force for civilian purposes with support from both the Soviet Union and China; initially, its fleet consisted of two Lisunov Li-2s that were later replaced by two Ilyushin Il-14 and three Aero Ae-45s. This was due to an embargo that prohibited the airline from leasing and/or buying American technology or components.
  The airline's development and expansion was seriously hampered by the Vietnam War (1954–1975). Following the war, its first international destination was Beijing, followed by Vientiane in 1976. During that year, the airline was known as General Department of Civil Aviation in Vietnam, and began full operations; it carried around 21,000 passengers, one-third of whom were on international flights, and 3,000 tonnes (6,600,000 lb) of cargo. In 1978, another important destination of Vietnam Airlines was added, with flights offered to Bangkok. The late 1980s and early 1990s saw the expansion of the network to Hong Kong, Kuala Lumpur, Manila and Singapore.
  In 1990, the company initiated discussions regarding the incorporation of Western-built aircraft into the fleet. Later that year, however, the carrier had to cancel the acquisition of two Airbus A310s due to their use of US-manufactured engines. By July 1991, the airline struck a wet-lease agreement with Dutch lessor TransAvia. The aircraft involved was a Boeing 737-300, that arrived in Vietnam Airlines' livery. However, the aircraft was returned after the U.S. State Department pressured the Dutch lessor to remove the aircraft from Vietnam. Subsequently, Vietnam Airlines organized a similar but more complicated deal with TEA Basle, who spent the rest of 1991 negotiating a deal with US authorities. Eventually, a solution stating that "[the Boeing 737] must be positioned outside Vietnam, with no logo or lettering of Vietnam Airlines. On these conditions, it could operate on behalf of Vietnam Airlines" was reached. In December 1991, Cathay Pacific and Vietnam Airlines agreed on a 50–50 joint venture to operate between Hong Kong and Vietnam, as the airline's Tupolev Tu-134 fleet did not meet Kai Tak Airport's noise restrictions.
  In October 1992, the Boeing 737 was supplemented with an Airbus A310. However, a dispute with Bulgarian Jes Air over who should pay for the repairs after the aircraft sustained an engine failure led to its replacement with another A310 from GATX, also operated by Jes Air. A similar dispute with United Technologies encouraged the airline to switch from Airbus to Boeing. Hence, a Boeing 767-200ER, leased from Ansett Worldwide Aviation Services (AWAS), arrived in January 1993, and a Royal Brunei Airlines Boeing 767-300ER, arrived the following year. In October 1993, the first Airbus A320-200 was incorporated over a two-year wet-lease contract with Air France. Vietnam Airlines by now had started discussions with Air France about a partnership, and the French carrier agreed to lease its Airbuses to Vietnam Airlines, and also to provide customer support and pilot/crew training. By that time the route network had further expanded internationally, seeing the incorporation of destinations such as Paris, Tokyo, Seoul, Taipei, Sydney, and Melbourne. In 1993, the airline carried 1.06 million passengers, 418,000 of whom were on international flights.
caption: Vietnam Civil Aviation Ilyushin Il-14
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