VietJet Air
VietJet Air logo.svg
IATA ICAO Callsign
VJ VJC VIETJET[1]
Founded30 November 2007; 14 years ago (2007-11-30)
Commenced operations25 December 2011; 10 years ago (2011-12-25)
Operating bases
Frequent-flyer programVietjet Skyclub
SubsidiariesThai Vietjet Air
Fleet size77
Destinations143
Parent companySovico Holdings, HDBank
Traded asHOSEVJC
HeadquartersBa Đình, Hanoi, Vietnam
Key peopleNguyen Thi Phuong Thao (CEO)
Employees2000
Websitewww.vietjetair.com

VietJet Aviation Joint Stock Company (Vietnamese: Công ty Cổ phần Hàng không VietJet), trading as VietJet Air or Vietjet, is an international low-cost airline[2] from Vietnam. It was the first privately owned new-age airline to be established in Vietnam, being granted its initial approval to operate by the Vietnamese Minister of Finance in November 2007.[3] As of its launch in December 2011, it became the second private airline to offer domestic service in Vietnam, as well as the fifth airline overall to offer civil domestic flights. VietJet Air is owned by Sovico Holdings, HDBank, other organisational investors, and individual stakeholders.

The carrier's launch was beset by long delays attributed to various causes, such as a global economic slowdown and regulatory issues. Despite the setbacks, VietJet Air's first flight was operated on 25 December 2011, flying from Ho Chi Minh City to Hanoi.[4][5] The carrier carried its 10 millionth passenger in December 2014,[6] and the 25 millionth passenger in December 2015.[7]

History

Foundation delays

The airline has its head office in the Vạn Phúc Diplomatic Corps in Ba Đình, Hanoi[8] It was the first privately owned airline to be established in Vietnam,[3] and as of its launch in December 2011, it became the second private airline (after Air Mekong) to offer domestic service in Vietnam, as well as the fifth airline overall not counting Indochina Airlines, which ceased operations in November 2009 to offer civil domestic flights, after Vietnam Airlines, Pacific Airlines, Air Mekong and the Vietnam Air Service Company (VASCO).[2] In its initial plan, the Hanoi-based airline stated its intention to offer flights to Ho Chi Minh City and Da Nang, gradually expanding its network to include other Asian destinations, such as Hong Kong, Bangkok, Singapore, and cities in southern China.[9] The airline's president and CEO is Nguyen Thi Phuong Thao from December 2011.[10]

Initially, VietJet had shown the intention to commence flights in late 2008 or early 2009.[9] Throughout the next few years, the expected launch date was repeatedly pushed back, first to late 2009, then mid-2010.[11] Airline officials gave different reasons for the delays, including increased fuel prices and other financial problems. Later news reports from the state-controlled Vietnam News Agency echoed these initial reports, stating that "the airline's four-year delay in takeoff was due to the global economic crisis", referring to the late-2000s global financial crisis.[5]

Although Malaysian budget carrier AirAsia announced in February 2010 that it planned to purchase a 30% stake in the airline through a joint venture agreement, the carrier later rescinded its plans, citing "a failure to obtain Vietnamese regulatory approvals".[12][13] By mid-2010, a date of October 2010 was being given for the maiden flight, with officials stating the additional delay was due to unresolved branding conflicts with the Civil Aviation Administration of Vietnam (CAAV).[14]

By February 2011, VietJet was said to be "completing final stages" prior to launch before its operation license expired in June.[15] In March, AirAsia reportedly indicated it might withdraw funding from VietJet if the airline was unable to resolve its branding issues before the June deadline.[16] Indeed, in October 2011, AirAsia announced it was calling off its plans to form a joint venture with VietJet, citing "a failure to obtain Vietnamese regulatory approvals", including the permission to use the AirAsia brand in the airline's commercial operations.[12] Despite the collapse of the AirAsia joint venture, VietJet announced in November that its launch plans would proceed.

Start of operations

The airline's maiden flight was eventually launched on 25 December 2011, flying from Ho Chi Minh City to Hanoi.[5]

The Vietnam aviation authority fined VietJet Air US$960 in 2012 for organizing five women of candidates in a local beauty contest to perform a Hawaiian themed-dance without first gaining permission to celebrate its maiden flight to the tourist hub of Nha Trang.[17]

On 9 February 2013, the airline launched its first international flight between Ho Chi Minh City and Bangkok, becoming the first Vietnamese private airline to enter the international market.

As a low-cost carrier (LCC) Vietjet does not have any direct booking capabilities with the Global Distribution Service (GDS) companies, Amadeus CRS, Sabre, or Travelport. This lack of connectivity limits the ability of the airline to attract interline connecting passengers for inbound and outbound flights. The problem is due in part to the lack of the airline joining Iata's Vietnam BSB which regulates the IATA accredited airlines banking settlement operations in the country. To get around the issue Vietjet has utilised an interline ticketing partner, Hahn Air (HR),[18] which allows for ticketing in more than 194 jurisdictions, but excludes ticketing in Vietnam. In August 2016 Hahn Air announced that they could provide ticketing for domestic Vietnam flights on Vietjet via the Amadeus platform, effectively locking out the other GDS systems for domestic ticketing in Vietnam.

On 11 February 2014, at the opening of that year's Singapore Air Show, the airline firmed up orders with Airbus for 60 A320 aircraft at a list price of $6.4 billion.[19] Previously, the airline had signed a Memorandum of Understanding with Airbus for 92 planes in the A320 family.[20]

On 17 June 2015, at the Paris Air Show, Vietjet ordered six additional Airbus A321 single-aisle jets worth $682 million at list prices from Airbus to meet demand on some of its busiest routes. On 10 November 2015 at the Dubai Air Show, Vietjet placed a further order for 30 A321s with Airbus. The deal reportedly includes 21 A321neos along with 9 A321ceos. At the same time, the airline confirmed the leased of 10 A319s from Air Berlin with delivery from 2016 to 2017, however, the A319 order was later cancelled and the airline decided to upgrade them to the larger A321s.

On 23 May 2016 during a visit of President Obama, an order for 200 Boeing 737 MAX aeroplanes was signed with deliveries to start in 2019.[21] On 6 September 2016, CEO Nguyen Thi Phuong Thao announced an order for 20 A321 single-aisle aircraft from Airbus. The signing took place during the visit of French President Francois Hollande.

During the 2018 Farnborough Airshow, Vietjet signed two MLUs, one with Boeing on July 18 consisted of 100 Boeing 737 MAXs (80 MAX 10s and 20 MAX 8s), and the other with Airbus on July 19, consisting of 50 A321 NEOs.

Public offering

On 28 February 2017, Vietjet completed its public listing and officially became a fully listed entity on the Ho Chi Minh City Stock Exchange (HOSE), making it the first airline in Vietnam to be listed on the bourse.[22]

The airline's market capitalization stood at $1.2 billion, accounting for 1.5 percent of HOSE's capitalization as of 15 February 2017.

With its public listing, Vietjet became the first Vietnamese firm to have completed an IPO that meets Securities Act of 1933 standards and practices.

BNP Paribas, Deutsche Bank, and JP Morgan Chase were the IPO's foreign joint global consultants.

Vietjet Air was a launch customer of the A321neo in Southeast Asia with first deliveries in December 2017.

Financials

According to pre-audited financial statements for 2019, Vietjet's air transport revenue reached VND41,097 billion. Profit before tax of air transport rose to VND3,936 billion, an increase of 21.4% in revenue and 29.3% in profit before tax year-on-year. Accumulated revenue was VND52,059 billion and consolidated profit was VND5,010 billion. Vietjet's total assets increased to VND47,608 billion, and equity rising to VND17,661 billion, an increase of 26% year-on-year.[23]

Destinations

Main article: List of VietJet Air destinations

VietJet Air serves 18 domestic and 26 international destinations.

Codeshare agreements

VietJet Air codeshares with Japan Airlines[24] and its subsidiary Thai Vietjet Air.

Fleet

As of March 2022, VietJet Air operates the following aircraft:[25][26]

A VietJet Air Airbus A320
A VietJet Air Airbus A320
Vietjet Air fleet
Aircraft In Service Orders Passengers Notes
J Y Total
Airbus A320-200 18 180 180
Airbus A321-200 38 220 220[27]
230 230[28][29]
Airbus A321neo 19 99 230 230
240 240 Equipped with Airbus Cabin Flex configuration.[30]
Airbus A321XLR 20[31] TBA
Airbus A330-300 2[32] 1[33] 12 365 377[34] Powered by Rolls-Royce Trent 700 engines[35]
Boeing 737 MAX 8 20[36] TBA
Boeing 737 MAX 10 80[36] TBA
Boeing 737 MAX 200 100[37] TBA
Total 77 320

The average fleet age as of March 2022 is 5.5 years

Services

VietJet Air offers three service options (fares):

Accidents and incidents

Since commencing operations, VietJet Air has only suffered from non-fatal incidents:

References

  1. ^ "JO 7340.2J Contractions" (PDF). Federal Aviation Administration. 10 October 2019. Retrieved 15 November 2019.
  2. ^ a b "Hàng không giá rẻ VietJet Air bay dịp tết". Tuổi Trẻ Online. 30 November 2011.
  3. ^ a b "Vietnamese government approves country's first privately owned airline". Forbes. 30 November 2007. Archived from the original on 7 March 2009.
  4. ^ "Kinh tế 24h VietJet Air chính thức cất cánh từ 25/12". Vietnam Economic Forum. 29 November 2011.
  5. ^ a b c "VietJet Air to take off next month". Vietnam News Service. 30 November 2011. Retrieved 30 November 2011.
  6. ^ "VietJet Air welcomes its 10 millionth passenger". VietJet Air. Retrieved 11 February 2015.
  7. ^ "Vietjet receives the 24,999,999th passenger". VietJetAir.com. VietJet Air. Retrieved 23 December 2015.
  8. ^ "[1]." "VIETJET AVIATION JOINT STOCK COMPANY, Head office: Block 1, Apartment 2C, Van Phuc Diplomatic Corps, Ngoc Khanh Ward, Ba Dinh District, Ha Noi, Viet Nam"
  9. ^ a b "VietJet website: FAQ". Archived from the original on 7 November 2007. Retrieved 10 January 2020.
  10. ^ "Foreign boss leads Vietnam's first private airline".
  11. ^ VIETJET AIR to launch the first flight in Quarter IV Archived 2011-09-01 at the Wayback Machine. March 10, 2009. VietJet Air.
  12. ^ a b "AirAsia calls off Vietnam joint venture". Agence France-Presse. 12 October 2011.
  13. ^ [2] Archived 2012-09-07 at archive.today
  14. ^ VietJet Air seeks to delay launch for 5th time Archived 2012-03-20 at the Wayback Machine. June 16, 2010. Tuoi Tre.
  15. ^ "Vietjet Air prepare to launch the first flight". Valc.com. Retrieved 4 January 2015.
  16. ^ AirAsia muốn rút vốn khỏi Vietjet. VNExpress.net. March 31, 2011. (in Vietnamese)
  17. ^ "Vietnam Airline Fined for In-Flight Bikini Show". August 9, 2012. Archived from the original on August 13, 2012. Retrieved August 9, 2012.
  18. ^ "Home - Hahn Air". Retrieved 29 March 2017.
  19. ^ Manila Bulletin. "VietJetAir orders 63 Airbus A320s for major fleet expansion". Manila Bulletin - Latest Breaking News - News Philippines. Retrieved 4 January 2015.
  20. ^ Manila Bulletin (24 September 2013). "Vietnam's VietJet seen close to major Airbus order". Manila Bulletin - Latest Breaking News - News Philippines. Retrieved 4 January 2015.
  21. ^ John Boudreau; Nguyen Dieu Tu Uyen (22 May 2016). "Boeing Wins $11.3 Billion Order for 100 Planes From VietJet". Bloomberg. Retrieved 30 July 2016.
  22. ^ "Vietjet completes $1.2bn listing on Ho Chi Minh City bourse". TuoiTreNews.vn. Retrieved 13 April 2017.
  23. ^ "How Vietjet is overcoming the pandemic" (Press release). Bangkok Post. 17 April 2020. Retrieved 17 April 2020.
  24. ^ "japan-airlines-and-vietjet-to-commence-codeshare-flights - news - VietJetAir.com - Enjoy Flying!". www.vietjetair.com. Retrieved 3 January 2021.
  25. ^ "Vietjet Air Fleet Detail and History". planespotters.net. Retrieved 13 April 2017.
  26. ^ "Airbus orders and deliveries". Airbus. February 2019. Archived from the original on 8 March 2019. Retrieved 22 April 2019.
  27. ^ TITC. "Vietjet Air receives first Airbus' A321". Vietnam National Administration of Tourism (in Vietnamese). Retrieved 3 January 2021.
  28. ^ "vietjet-receives-the-worlds-first-ever-230seat-a321ceo-with-sharklets - news - VietJetAir.com - Enjoy Flying!". www.vietjetair.com. Retrieved 3 January 2021.
  29. ^ "VietJet receives first A321neo aircraft". en.nhandan.org.vn. Retrieved 3 January 2021.
  30. ^ "PICTURES: VietJet receives first 240-seat 'Cabin Flex' A321neo". Flightglobal. Retrieved 26 September 2019.
  31. ^ "Vietjet orders A321XLR and signs Airbus training services agreement". Airbus. 28 October 2021.
  32. ^ "Welcoming the brilliant summer VietJet-receives more wide body A330 aircraft to serve passengers". VietJet Air. Retrieved 1 April 2022.
  33. ^ VnExpress. "Vietnam, France sign billion-dollar agreements during PM Chinh's visit - VnExpress International". VnExpress International – Latest news, business, travel and analysis from Vietnam. Retrieved 4 November 2021.
  34. ^ "Updated: Vietjet Air is preparing for A330 operation - Airliners.net". www.airliners.net. Retrieved 4 November 2021.
  35. ^ "Vietjet Air | Bay là thích ngay! | Website chính thức". www.vietjetair.com. Retrieved 4 November 2021.
  36. ^ a b "Boeing, VietJet Sign Agreement for 100 737 MAX Airplanes". Boeing. Retrieved 4 December 2018.
  37. ^ "VietJet Aviation Announces Order for 100 737 MAX 200 Airplanes". Boeing. Retrieved 19 March 2019.
  38. ^ "skyboss". www.vietjetair.com. Retrieved 27 August 2019.
  39. ^ "VietJet receives first A321neo aircraft". en.nhandan.org.vn. Retrieved 27 August 2019.
  40. ^ "Máy bay VietJetAir hạ cánh sai đường băng" [VietJet airplane landed on wrong runway]. Vietnam Net (in Vietnamese). 23 October 2014.
  41. ^ "ASN Wikibase Occurrence # 180077". Aviation Safety Network. Retrieved 26 July 2017.
  42. ^ "Xem xét phạt Vietjet vụ người mẫu bikini trên chuyên cơ chở U23" [Fines considered for bikini model case on plane carrying U23] (in Vietnamese). 29 January 2018.
  43. ^ Nguyen, Quy (12 September 2018). "Máy bay Vietjet bị mưa đá làm nứt kính buồng lái" [VietJet aircraft was hit by hail and cracked the cockpit window]. Kinh Te & do thi (in Vietnamese). Retrieved 4 August 2019.
  44. ^ Editorial, Reuters (30 November 2018). "VietJet plane makes troubled landing, minor injuries to some passengers". Reuters. Retrieved 4 December 2018.
  45. ^ "Máy bay đi nhầm đường lăn, một máy bay khác sắp hạ cánh phải bay lên lại" [Aircraft steered onto the wrong taxiway, another plane had to go-around] (in Vietnamese). Tuoi Tre. 12 July 2019. Retrieved 4 August 2019.
  46. ^ Cong, Huu (14 June 2020). "Aircraft skids off runway in HCMC amid heavy rains". VnExpress International. Retrieved 14 June 2020.