Case study

Vietnam Airlines

About Vietnam Airlines

Vietnam Airlines was founded in 1995 and is the flag carrier of Vietnam. Prior to COVID-19, Vietnam Airlines was operating 94 routes to 22 domestic and 29 international destinations. The company proudly connects Asia with the world with approximately 400 flights per day which requires a workforce of over 10,000 people.

Vietnam Airlines is 86.2% owned by the government of Vietnam, 8.77% by ANA Holdings and 5.04% by other shareholders, according to its 2019 annual report. Vietnam Airlines has 15 subsidiaries whose activities include air passenger transportation, direct services for air transportation, repairs and maintenance of vehicles, catering as well as aeroplanes and the manufacturing of measuring, testing, navigating, controlling equipment and other airport services.

To say that the aviation giant is a complex company with multiple sub-cultures would be a big understatement. Keep reading to find out how Ringo helped make sense of the complexity and helped Vietnam Airlines achieve a 5-star safety rating.

The challenge

The aviation industry is fast-paced very competitive and requires many employees and contractors to undertake high-risk work. The competitve nature of the industry can lead to razor-thin margins which means the business priorities can shift towards the bottom-line which can be at the detriment of safety initiatives.

If this sounds counter intuitive, you’re probably right as businesses like Vietname Airline’s reputation and competitive edge hinge directly on their safety records – customers put their trust in the commercial carrier every day to safely get them from point A to point B and will happily select another carrier if they beleive it will be a safer option. Malaysia Airlines experienced a $138m USD decline in revenue in 2014 after flight MH370 disappeared with 239 passengers and crew aboard, the business attributed negative sentiment (trust) for the loss in revenue.

Before partnering with Ringo, Vietnam Airlines was aware of the direct link between safety culture and safety performance. However, the company didn’t have an evidence-based solution to flag leading safety culture in real-time.. despite attempting to do this with traditional aviation consultants.

The solution

Real-time culture measurement

 

Ringo’s data visualisations provided Vietnam Airlines with a holistic view of their safety culture, extending from their core brand to the ten subsidiaries. It is important for a business to draw insights at a business unit level as this level of analysis allows the business to understand attitudes and beliefs at a granular level in real-time. The General Manaber of the Safety and Quality Division, Au Guy Lihn, knows too well that you can’t even begin to manage what you haven’t measured.

 

Understanding sub-cultures at a demographic level

 

Ringo worked closely with Vietnam Airlines to unpack their safety culture at a demographic level to set strategies to increase the safety culture maturity within the different business units. Without this level of granularity, the aviation giant could be flying blind and implementing interventions that do not solve the root cause of the issues.

 

Leading safety culture indicators

 

Fatigue was flagged as a key area of concern in the safetu culture baseline survey. Ringo worked with safety leaders to help them better understand the underlying reasons for fatigue in their workplace. This process included a review of qualitative feedback from front line workers across the core brand and 15 subsideries.

Readiness was also flagged as an area for concern as 40% of the workforce doubted the preparedness for managing safety and health hazards in the workplace. Again Ringo worked closely with safety leaders to unpack the underlying issues and provided strategic recommendations and supporting tactics to mitigate these risks.

 

Regulatory support

 

By measuring and working on their safety culture, Vietnam Airlines was able to gain the support of the regulator and prove that they have a handle on their safety culture. The company proudly boasts a 5-star safety rating thanks in part to the partnership with Ringo.

Testimonial

What Our Happy Customers Say About Ringo

 

Au Guy Linh – General Manager of Safety and Quality Division

 

The process and platform allowed us to identify gaps in our safety culture that we didn’t know existed.

The Ringo process gave us strategic recommendations and supporting tactics that when operationalised helped us to shape our culture to meet our business and safety goals and objectives.

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