The rise and rise of Vietnam’s Vietjet

Vietnams favourite low cost airline has grown in size more than most predicted benefiting not only Vietnamese citizens but the tourism and business sector as well.

When the airline first launched 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 pilot and cabin crew in their unique and 'fun' uniforms .
Vietjet pilot and cabin crew in their unique and ‘fun’ uniforms .

The airline has quickly grown its fleet and subsequently its number of destinations opening up affordable travel to all including those that perhaps couldn’t afford air travel before.

The airline to date has flown 40 million passengers, and been awarded 32 domestic and nine international accolades such as being named one of the Top 500 Brands in Asia 2016 and “The Best Asian Low Cost Carrier 2015” at the TTG Travel Awards 2015.

Today Vietjet has five main bases: Ho Chi Minh City, Hanoi, Da Nang, Nha Trang, and Hai Phong, the airline

Vietjet aircraft take off and land at Ho Chi Minh.
Vietjet aircraft take off and land at Ho Chi Minh.

operates a fleet of 45 aircraft, including A320s and A321s, and operates over 300 flights per day. It currently operates 63 routes (37 domestic and 26 international) in Vietnam and across the region to international destinations such as Hong Kong, Thailand, Singapore, South Korea, Taiwan, Malaysia, Cambodia, China and Myanmar.

Vietjet Key Milestones

2007:
– Obtained its Air Operator’s Certificate (AOC)

Receiving the IOSA certification of safety excellence in 2015.
Receiving the IOSA certification of safety excellence in 2015.

2011:
– On December 25 the first commercial flight flew from Ho Chi Minh City to Hanoi

2013:
– Flew its first international flight between Ho Chi Minh City and Bangkok, Thailand-
– By the end of the year the airline had gained 20% of the domestic market share

2014:
– By the end of 2014, with a fleet of 19 aircraft, Vietjet had secured 29.6% of domestic market share

2015:
– Obtained the IATA Operational Safety Audit certificate (IOSA) from International Air       Transport Association (IATA)
– Inaugurated the Vietjet Training Center (VTC)
– Flew its 10 millionth passenger
– By the end of the year had gained 37.1% domestic market share with a fleet of 30 A320 aircraft

2016:
– Received a Certificate of Merit from the Prime Minister of Vietnam for achievements in production and business, actively contributing to the economic and social development of the city, contributing to the cause of national construction and defense
– Vietjet officially became a full member of IATA
– Held a ceremony to celebrate flying its nineteen-millionth passenger
– 44.7 million shares were offered to 24 international institutional investors. Vietjet is the first Vietnamese company to have completed an IPO that meets international standards and practices

Aviation in Vietnam

Map of the airports in Vietnam withthose in red served by Vietjet.Vietnam has the fastest economic growth rate and urbanization rate within the ASEAN region. From 2000 to 2015, Vietnam’s GDP per capita grew at a rate of 5.3%, which was one of the highest in the region. Vietnam is expected to maintain a strong GDP growth rate of over 6% over the period of 2016-2021. Considering its large and young population of 91 million people plus a booming tourism sector (11% growth year on year) air travel penetration in Vietnam is very low. With vast distances and large areas lacking in effective road and rail connectivity, air travel service is an area that still has much room to grow. The Vietnamese government has reported its plan to invest US$10.5bn to develop airport infrastructure across the country meaning nothing but growth opportunities for Vietjet.

Safety

There is a perception, particularly in western countries that low cost Asian carriers compromise on safety but Vietjet scores a very respectable 6/7 on AirlineRatings.com’s safety rating system, the equal highest rating in Vietnam. In 2015 Vietjet received its IATA

Vietjet’s technical reliability ratio for 2017’s first quarter is also recorded at an impressive 99.59%
Vietjet’s technical reliability ratio for 2017’s first quarter is also recorded at an impressive 99.59%

Operational Safety Audit (IOSA) certificate from the International Air Transportation Association (IATA) for its outstanding operational standards.  IOSA certification is a confirmation of the commitment of an airline to deliver safe operations based on the principles stated in the IOSA Standards Manual. Vietjet’s technical reliability ratio for 2017’s first quarter is also recorded at 99.59%, an increase of 0.02% against 2016’s, a highly impressive rate.

The airline today operates a fleet of 45 A320 and A321 aircraft with an average age of only 3.28 years.

Making moves in Training

In October 2015, the Vietjet Training Centre (VTC) was approved as an Approved Training Organization (ATO) to provide professional training for Pilots, Cabin crew, Technical staff, Ground Operation Staff and Dispatchers. In 2016, Vietjet and Airbus inked an agreement to provide flight and maintenance training services in Ho Chi Minh City. With this agreement, VTC will conduct training for pilots, engineers, technicians, dispatchers and instructors complying with Airbus and EASA’s standards from the first quarter of 2018

Financial Status

Vietjet Aviation Joint Stock Company is a fully-listed entity on the Ho Chi Minh City Stock Exchange (HOSE: VJC). The airline is the first Vietnamese company to have completed an

With a fleet of 45 aircraft it is not uncommon to see rows of aircraft in airports around Vietnam and Asia.
With a fleet of 45 aircraft it is not uncommon to see rows of aircraft in airports around Vietnam and Asia.

IPO that meets international standards and practices (Reg S). BNP Paribas, Deutsche Bank, JP Morgan are the IPO’s foreign joint global consultants. Twenty-four international investors subscribed to Vietjet’s offering, including Singapore sovereign fund GIC, Wellington, Morgan Stanley, Dragon Capital, VinaCapital, and many more.

Vietjet’s revenue in 2016 was VND27,532 billion (USD1.21 billion) with a net profit of VND2,394 billion,  (USD105 million) with an earnings per share of  VND8,762.

Core Values

One of the things you can’t help but love about Vietjet is their core values

To be ‘SAFE, FUN, AFFORDABLE and PUNCTUAL’

And really, what else could you want.