Vietnam Airlines and Sabre announce expanding strategic relationship

Vietnam Airlines and Sabre will work together to turn the former into a digital airline by 2020

The MoU describes Vietnam Airlines’ intention to significantly expand their existing strategic relationship with Sabre, with a potential value of over $300 million. The scope of the signed MoU includes innovative technology from the Sabre AirVision and AirCenter portfolio that will complement SabreSonic, Vietnam Airlines’ existing Passenger Service System (PSS), which was recently renewed. Together, once implemented, Sabre’s solutions will help contribute to the carrier’s profitability and digital abilities, supporting their objective to become a digital airline by 2020.

Leveraging Sabre’s leading commercial platform, the MoU contemplates that Sabre’s innovative Sabre In-Flight solution would be the first to be adopted by the airline following today’s announcement. The solution, which has driven cost savings of up to 10 per cent of the total catering budget, would also enhance the airlines’ operational efficiency. Additionally, the MoU contemplates a new, long-term domestic content distribution agreement for Vietnam Airlines through the Sabre Global Distribution System (GDS).

A growing domestic subsidiary of the Vietnam Airlines group would also onboard the SabreSonic PSS under the MoU in an effort to enhance the synergy within the group. The deal contemplated by the MoU, which is expected in the coming months, would provide a single integrated passenger technology platform across both airlines.

“Vietnam Airlines is pleased to build on the existing agreement with Sabre, our trusted, long-term technology provider, to include advanced solutions that will propel our business into the future. Our Digital Transformation programme is essential to our continued success and onboarding these solutions from Sabre directly support our efforts to achieve the Skytrax five-star status,” said Duong Tri Thanh, president and CEO of Vietnam Airlines. “We are well-prepared for the Industry 4.0 revolution and will soon embark on the ultimate digital journey, providing seamless customer experience and improved operational efficiency,” he added.

“This announcement reaffirms our role as a strategic technology provider to one of the region’s leading carriers, Vietnam Airlines. Over the last year, our alliance has evolved both on the content distribution and airline solutions front, and we look forward to working with the carrier to provide a holistic approach to retailing, distribution, and fulfillment,” said Dave Shirk, president, Travel Solutions. “Today’s announcement demonstrates Sabre’s forward-looking approach, and our ongoing commitment to Asia’s continued growth and success,” he added.

This announcement comes within one year of Sabre and Vietnam Airlines announcing an extended agreement for SabreSonic, Sabre’s Passenger Service System valued at over $400 million, and the renewal of a long-term content distribution agreement through the Sabre Global Distribution System. The MoU expands the relationship between the two industry leaders, and further strengthens the results-driven alliance that has developed between the two corporations for more than 20 years.

Sabre Corporation is the leading technology provider to the global travel industry. Sabre’s software, data, mobile, and distribution solutions are used by hundreds of airlines and thousands of hotel properties to manage critical operations, including passenger and guest reservations, revenue management, flight, network, and crew management.

Sabre also operates a leading global travel marketplace, which processes more than $120 billion of global travel spending annually by connecting travel buyers and suppliers. Headquartered in Southlake, Texas, the US, Sabre serves customers in more than 160 countries around the world.