Vietnam Airlines and Garuda agree partnership

1 min readUpdated May 30, 2025Aug 30, 20171:25 AM

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Asian carriers Vietnam Airlines and Garuda Indonesia have agreed to an extended partnership including more codeshares and working together on MRO (maintenance, repair and operations) operations.

The CEOs of the two Skyteam members signed a memorandum of understanding (MOU) to work more closely together during an event in Indonesia.

As part of the deal, the carriers will extend their existing codeshare agreement on to additional routes including Hanoi-Ho Chi Minh City, Hanoi/Ho Chi Minh City-Singapore, Singapore-Jakarta/Bali and Jakarta-Bali.

Pahala Mansury, CEO of Garuda Indonesia said: “We are pleased to announce this partnership with Vietnam Airlines which extends our network even further within the south-east Asia.

“Vietnam is an important market for Indonesia and through this partnership we can offer increased travel options for the increasing number of passengers travelling between the two countries.”

Vietnam Airlines CEO Duong Tri Thanh added: “This MOU takes our co-operation further in the direction of a solid and mutually beneficial partnership, helping both airlines achieve the vast potential of the market.”

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What this means

This extended codeshare and MRO partnership between Garuda and Vietnam Airlines is a shrewd move to enhance regional connectivity and operational efficiency, using existing strengths. It directly pressures smaller carriers operating on high-demand routes like Singapore-Jakarta/Bali by offering broader network options. Unlike LivWell's more niche partnership agreements in Vietnam, this deal targets core airline operations, echoing the focus on strategic alliances seen historically in the aviation sector. The risk lies in integration complexities and ensuring shared service quality, but the potential for increased market share and cost savings through MRO collaboration makes this a strong play. Future success will be evident in passenger traffic growth figures on shared routes.

Maria Santos · Retail News Asia newsroom

Questions & Answers

Which specific new routes will be covered by the extended codeshare agreement?

The extended codeshare will cover Hanoi-Ho Chi Minh City, Hanoi/Ho Chi Minh City-Singapore, Singapore-Jakarta/Bali, and Jakarta-Bali. This expands the existing agreement between the two airlines, offering more travel options for passengers.

What is the purpose of this extended partnership for the airlines involved?

The partnership aims to extend their network within Southeast Asia and increase travel options for passengers between Vietnam and Indonesia. Both CEOs believe it will help their airlines achieve the market's vast potential through mutual benefits.

What operational area will Vietnam Airlines and Garuda Indonesia work together on?

Beyond codeshares, the two airlines will also collaborate on MRO operations. MRO stands for maintenance, repair, and operations, indicating a deeper level of cooperation in their airline services.

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