Vietnam Airlines has signed a memorandum of understanding (MOU) to expand its strategic partnership with Sabre as part of its digital transformation efforts.

The new agreement represents a potential value of more than $300m and will see the airline secure innovative technology from the Sabre AirVision and AirCenter portfolio.

The technology is expected to complement SabreSonic, the airline’s existing passenger service system (PSS).

The state-owned airline expects the implementation of the US firm’s solutions will enhance its profitability and digital abilities, while also supporting its objective to become a digital airline by 2020.

Vietnam Airlines president and CEO Duong Tri Thanh said: “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 5-star status.

“Our Digital Transformation programme is essential to our continued success.”

“We are well-prepared for the Industry 4.0 revolution and soon to embark on the ultimate digital journey, providing seamless customer experience and improved operational efficiency.”

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Under the MoU, the carrier will adopt Sabre In-Flight solution, which is expected to deliver cost savings and operational efficiency.

The firm will also explore the possibility of a new, long-term domestic content distribution agreement through the Sabre Global Distribution System (GDS).

A domestic subsidiary of the company will also adopt the SabreSonic PSS to enhance the synergy within the group.

The companies expect to finalise a deal within months to implement a single integrated passenger technology platform across both airlines.

Sabre Travel Solutions president Dave Shirk said: “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 fulfilment.”

The new agreement comes after Sabre and Vietnam’s flag carrier reached a $400m renewed deal for SabreSonic last year.

The deal also included the extension of a content distribution agreement through the Sabre GDS.