VietJet Air explained

Airline:VietJet Air
Iata:VJ
Icao:VJC
Callsign:VIETJET[1]
Frequent Flyer:VietJet Skyclub
Fleet Size:77
Destinations:115[2]
Parent:Sovico Holdings, HDBank
Subsidiaries:Thai VietJet Air
Headquarters:Ba Đình district, Hanoi, Vietnam
Key People:Nguyen Thi Phuong Thao (CEO)
Revenue:40.414 trillion VNĐ ($1.722 billion USD)
Assets:68 trillion VNĐ ($2.557 billion USD)
Num Employees:2,000

Vietjet Aviation Joint Stock Company (Vietnamese: Công ty Cổ phần hàng không Vietjet), operating as VietJet Air or Vietjet, is a Vietnamese low-cost airline[3] based in Hanoi. It was the first privately owned airline to be established in Vietnam, being granted its initial approval to operate by the Vietnamese Minister of Finance in November 2007.[4] 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.[5] [6] The carrier carried its 10 millionth passenger in December 2014,[7] and the 25 millionth passenger in December 2015.[8]

History

Foundation delays

Founded in 2007, the airline's founding team included Robert Hughes, an American who led the company through its initial year.[9] The airline has its head office in the Vạn Phúc Diplomatic Corps in Ba Đình district, Hanoi[10] It was the first privately owned airline to be established in Vietnam,[4] 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). 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.[11] The airline's president and CEO is Nguyen Thi Phuong Thao from December 2011.[12]

Initially, VietJet had shown the intention to commence flights in late 2008 or early 2009. Throughout the next few years, the expected launch date was repeatedly pushed back, first to late 2009, then mid-2010.[13] Airline officials gave different reasons for the delays, including increased fuel prices and other financial problems, as well as unresolved branding conflicts with the Civil Aviation Administration of Vietnam (CAAV).[14]

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 rescinded its plans in October 2011, citing "a failure to obtain Vietnamese regulatory approvals".[15] [16]

By February 2011, VietJet was said to be "completing final stages" prior to launch before its operation license expired in June.[17] The airline's maiden flight was eventually launched on 25 December 2011, flying from Ho Chi Minh City to Hanoi.

Operations

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.[18]

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.

In February 2014, at the opening of that year's Singapore Airshow, 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]

In 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;[21] VietJet purchased a further 30 later that year at the Dubai Airshow, which included 21 A321neos along with 9 A321ceos.[22] In May 2016 during a state visit of US President Barack Obama, an order for 200 Boeing 737 MAX aeroplanes was signed, with deliveries to start in 2019.[23] In September 2016, CEO Nguyen Thi Phuong Thao announced an order for 20 A321 single-aisle aircraft from Airbus. The signing took place during a state visit of French President Francois Hollande.[24] During the 2018 Farnborough Airshow, Thai VietJet, VietJet's Thai subsidiary, ordered 100 Boeing 737 MAXs (80 MAX 10s and 20 MAX 8s) and 50 A321neos.[25]

Public offering

VietJet completed its initial public offering (IPO) on the Ho Chi Minh City Stock Exchange (HOSE) on 28 February 2017 at an initial price of (US$) per share. The share price immediately rose by 20%, the maximum allowed for newly listed companies. The airline raised $167 million from the listing, making it the biggest IPO on the Vietnamese stock market to date[26] and accounting for 1.5% of HOSE's capitalization at the time.[27]

Corporate affairs

Business trends

The key trends for VietJet are (as of the financial year ending 31 December):[28]

Revenue
(VNDtr)		Net profit
(VNDb)[29] 		Number of
passengers
(m)		Number of
international
routes[30] 		Passenger
load factor
(%)[31] 		On-time
performance
(%)		Fleet size[32] References
201742.35,30316.752848654[33]
201853.55,33521.366838474 [34]
201950.63,80723.785828678
202018.26912.1-748771
202112.8805.433679476
202240.1−2,26120.648809275
202358.323125.3808587

Destinations

See main article: List of VietJet Air destinations. As of November 2023 VietJet Air serves 13 countries and 99 routes.[2]

Codeshare agreements

VietJet Air codeshares with the following airlines:

Fleet

Current fleet

, VietJet Air operates an all-Airbus fleet composed of the following aircraft:[36] [37]

VietJet Air fleet
AircraftIn ServiceOrdersPassengersNotes
JYTotal
17 - - 180180
6 - - 220220
30230230[38]
11103 - 230230[39] Some of its fleet are grounded for engine inspection.[40]
14240240Equipped with Airbus Cabin Flex configuration.[41]
- 20[42] TBA
7[43] 2[44] 12365377[45] To be replaced by Airbus A330-900.
- 20[46] TBADeliveries from 2026 and will replace Airbus A330-300.[47] [48]
- 66[49] TBAThe first 50 aircraft will be transferred to the Thai subsidiary.
Deliveries from 2024 to 2028.
To receive first 12 in 2024.
- 106TBA
- 28TBA
Total84345

Fleet development

On February 26, 2019, VietJet Air signed a memorandum of understanding with Boeing, an American aircraft manufacturer, to purchase 100 Boeing 737 MAX 200 aircraft.[50] [51] The signing ceremony took place at the Presidential Palace in Hanoi, Vietnam, in the presence of Vietnamese President Nguyen Phu Trong and U.S. President Donald Trump.[52] [53] [54]

In December 2019, VietJet Air had one of its first Boeing 737 MAX 200 aircraft rolled out from the Boeing factory.[55] [56] [57] However, the plane was not taken up afterwards and was delivered to Akasa Air.[58]

On July 23, 2024, at the Farnborough International Airshow, VietJet Air and Airbus officially finalized a deal worth $7.4 billion for 20 Airbus A330-900 aircraft, following a signed Memorandum of Understanding (MoU) for the purchase back in February 2024 at the Singapore Airshow.[59] It is the airline’s first-ever widebody order. They will replace the carrier’s current wide-body fleet of 7 leased Airbus A330-300 aircraft, as well as providing for network expansion.[60]

Services

VietJet Air offers three service options (fares):

Accidents and incidents

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

See also

External links

Notes and References

  1. Web site: JO 7340.2J Contractions. Federal Aviation Administration. 15 November 2019. 10 October 2019.
  2. Web site: VietJetAir on ch-aviation . 2023-11-09 . ch-aviation . en.
  3. News: Hàng không giá rẻ VietJet Air bay dịp tết. Tuổi Trẻ Online. 2011-11-30.
  4. Web site: Vietnamese government approves country's first privately owned airline . https://archive.today/20090307194726/http://www.forbes.com/markets/feeds/afx/2007/11/30/afx4389933.html . dead . 7 March 2009 . Forbes . 30 November 2007.
  5. News: Kinh tế 24h VietJet Air chính thức cất cánh từ 25/12. Vietnam Economic Forum. 2011-11-29.
  6. News: VietJet Air to take off next month. 2011-11-30. Vietnam News Service. 2011-11-30.
  7. Web site: VietJet Air welcomes its 10 millionth passenger. VietJet Air. 11 February 2015.
  8. Web site: Vietjet receives the 24,999,999th passenger. VietJetAir.com. VietJet Air. 23 December 2015.
  9. Web site: VietJetAir thay Tổng Giám đốc. Báo Công an Nhân dân điện tử.
  10. "http://www.vietjetair.com." "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"
  11. Web site: VietJet website: FAQ. https://web.archive.org/web/20071107031133/http://www.vietjetair.com/FAQs. 2007-11-07 . 2020-01-10.
  12. Web site: Foreign boss leads Vietnam's first private airline.
  13. http://vietjetair.com/VIETJET%20AIR%20to%20launch%20the%20first%20flight%20in%20Quarter%20IV.html VIETJET AIR to launch the first flight in Quarter IV
  14. http://www.vietnewsonline.vn/News/Business/16662/VietJet-Air-seeks-to-delay-launch-for-5th-time.htm VietJet Air seeks to delay launch for 5th time
  15. News: AirAsia calls off Vietnam joint venture. https://web.archive.org/web/20140225152302/http://www.google.com/hostednews/afp/article/ALeqM5hP4AT8rcbxSzByHOAOWeRtSSoBRA?docId=CNG.a53db9560f7a409342b40008d5374f7a.231. dead. 25 February 2014. Agence France-Presse. 2011-10-12.
  16. Web site: Article not found. https://archive.today/20120907003605/http://www.mb.com.ph/articles/252058/vietjet-air-airasia-launch-lowcost-airline. dead. 7 September 2012. Manila Bulletin.
  17. Web site: Vietjet Air prepare to launch the first flight. Valc.com. 4 January 2015.
  18. Web site: Vietnam Airline Fined for In-Flight Bikini Show . August 9, 2012 . dead . https://web.archive.org/web/20120813023037/http://www.thejakartaglobe.com/international/vietnam-airline-fined-for-in-flight-bikini-show/536945 . August 13, 2012 . mdy-all . August 9, 2012 .
  19. Web site: VietJetAir orders 63 Airbus A320s for major fleet expansion. Manila Bulletin. Manila Bulletin - Latest Breaking News - News Philippines. 4 January 2015.
  20. News: Vietnam's VietJet seen close to major Airbus order. Manila Bulletin. Manila Bulletin - Latest Breaking News - News Philippines. 24 September 2013. 4 January 2015.
  21. Web site: June 17, 2015 . Vietjet signs several major contracts at Paris Air Show 2015 . 2022-08-08 . www.vietjetair.com.
  22. Web site: November 10, 2015 . Airbus, Vietjet Announce Deal for 30 Planes at Dubai Airshow . 2022-08-08 . . en.
  23. Web site: Boeing Wins $11.3 Billion Order for 100 Planes From VietJet. John Boudreau. Nguyen Dieu Tu Uyen. May 22, 2016 . Bloomberg. 2016-07-30.
  24. Web site: Orban . André . 2016-09-06 . Vietjet to expand its Airbus fleet with new order for 20 A321s . 2022-08-08 . Aviation24.be . en-GB.
  25. Web site: Darkunde . Mahesh . 2022-07-25 . Vietjet confirms 200 Aircraft Boeing Order at Farnborough International Airshow . 2022-08-08 . Aviation A2Z . en-US.
  26. News: Woodhouse . Alice . Peel . Michael . 2017-02-28 . VietJet shares surge after Vietnam's biggest public listing . Financial Times . 2022-08-08.
  27. Web site: Vietjet Shares To Be Officially Listed On Hose . 2022-08-08 . www.vietjetair.com.
  28. Web site: Annual reports . 2024-07-30 . ir.vietjetair.com.
  29. Web site: Yearly profit after tax of Vietjet Air . 2023-11-04 . Statista . en.
  30. Web site: Vietjet Annual Report 2022 . November 4, 2023 . Vietjet.
  31. Web site: 31 Mar 2024 . Vietjet Annual Report 2023 .
  32. Web site: Yearly number of aircraft in operation of Vietjet Air . 2023-11-04 . Statista . en.
  33. Web site: Annual Report 2017 . November 4, 2023 . Vietjet.
  34. Web site: Vietjet announces its audited financial statement of 2018: Core business continues to increase 49%, international revenue surpassed domestic ones . 2023-11-04 . www.vietjetair.com.
  35. Japan Airlines and Vietjet to commence codeshare flights. 19 October 2018. VietJet Air.
  36. Web site: Vietjet Air Fleet Detail and History. planespotters.net. 2024-02-23.
  37. Airbus Orders and Deliveries (XLS), monthly updated, accessed via Web site: Orders & deliveries . Airbus . Airbus SAS.
  38. Web site: vietjet-receives-the-worlds-first-ever-230seat-a321ceo-with-sharklets - news - VietJetAir.com - Enjoy Flying!. 2021-01-03. www.vietjetair.com.
  39. Web site: VietJet receives first A321neo aircraft . 2021-01-03 . en.nhandan.org.vn . en.
  40. Web site: Vietnamese carriers ground aircraft over P&W engine issues. Ch-Aviation. 11 March 2024.
  41. Web site: PICTURES: VietJet receives first 240-seat 'Cabin Flex' A321neo. Flightglobal. 26 September 2019.
  42. Web site: Vietjet orders A321XLR and signs Airbus training services agreement. Airbus. 28 October 2021.
  43. Web site: Vietjet Receives Sixth Airbus A330 . 2022-04-01 . VietJet Air . en.
  44. News: VnExpress. Vietnam, France sign billion-dollar agreements during PM Chinh's visit - VnExpress International. en. VnExpress International – Latest news, business, travel and analysis from Vietnam. 2021-11-04.
  45. Web site: Updated: Vietjet Air is preparing for A330 operation - Airliners.net. 2021-11-04. www.airliners.net.
  46. Web site: Vietjet to order 20 A330neo widebodies. Airbus. 22 February 2024.
  47. Web site: Doran . Michael . 2024-02-22 . VietjetAir inks MOU for twenty A330-900Ns. 2024-02-22 . Ch-Aviation . en.
  48. 22 February 2024. Vietjet to order 20 A330neo widebodies. Airbus.
  49. Web site: VietJetAir now expects B737 MAX deliveries from 2024 . 2022-09-15 . ch-aviation . en.
  50. Web site: VTV . BAO DIEN TU . 2016-05-23 . Vietjet Air đặt mua 100 máy bay Boeing trị giá 11,3 tỷ USD . 2023-12-29 . BAO DIEN TU VTV . vi.
  51. Web site: baochinhphu.vn . 2022-07-22 . Vietjet và Boeing tiếp tục hợp đồng mua bán 200 tàu bay . 2023-12-29 . baochinhphu.vn . vi.
  52. Web site: Boeing và Vietjet đạt thoả thuận về hợp đồng 200 tàu bay . 2023-12-29 . qdnd.vn . en-US.
  53. Web site: Thoả thuận đặt hàng máy bay qua 3 đời Tổng thống . 2023-12-29 . baodautu . vi.
  54. Web site: NLD.COM.VN . Vietjet và Carlyle thỏa thuận tài trợ 550 triệu USD mua máy bay Boeing 737 Max . 2023-12-29 . Báo Người Lao Động Online . vi.
  55. Web site: 2019-12-17 . Hình ảnh đầu tiên về Boeing 737 MAX 8 của Vietjet Air . 2023-12-29 . Znews.vn . vi.
  56. Web site: 2019-12-17 . Chưa về Việt Nam, Boeing 737 MAX 8 của Vietjet Air đã 'lộ hàng' . 2023-12-29 . Báo điện tử VTC News . vi.
  57. Web site: Những hình ảnh đầu tiên về Boeing 737 Max 8 của Vietjet, chưa rõ ngày bàn giao vì đang bị cấm bay . 2023-12-29 . vovgiaothong.vn . vi.
  58. Web site: VT-YAV AKASA AIR BOEING 737-8200 MAX . 2024-01-10 . planespotters.net. 2 November 2023 .
  59. Web site: VietJet Air Firms Airbus A330neo Order. 24 July 2024 . 2024-07-25. aviationweek.com.
  60. Web site: Vietjet mua 20 máy bay thân rộng thế hệ mới A330neo của Airbus. 22 February 2024 .
  61. Web site: skyboss. www.vietjetair.com. 2019-08-27.
  62. Web site: VietJet receives first A321neo aircraft. en.nhandan.org.vn. en. 2019-08-27.
  63. Web site: Máy bay VietJetAir hạ cánh sai đường băng. Vietnam Net. VietJet airplane landed on wrong runway. 23 October 2014. Vietnamese.
  64. Web site: ASN Wikibase Occurrence # 180077 . Aviation Safety Network . 26 July 2017.
  65. Web site: Xem xét phạt Vietjet vụ người mẫu bikini trên chuyên cơ chở U23. Fines considered for bikini model case on plane carrying U23. 29 January 2018. Vietnamese.
  66. Web site: Máy bay Vietjet bị mưa đá làm nứt kính buồng lái . VietJet aircraft was hit by hail and cracked the cockpit window . Nguyen. Quy. Kinh Te & do thi. 4 August 2019. 12 September 2018. Vietnamese.
  67. News: VietJet plane makes troubled landing, minor injuries to some passengers. Reuters. 30 November 2018. 4 December 2018.
  68. Web site: 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. 12 July 2019. Tuoi Tre. 4 August 2019. Vietnamese.
  69. Web site: Cong. Huu. Aircraft skids off runway in HCMC amid heavy rains. 14 June 2020. 14 June 2020. VnExpress International.
  70. Web site: Vietjet plane with 214 people aboard lands safely in Laoag after technical problem . Inquirer.net . 28 June 2023 . 29 July 2023.
  71. Web site: Aircraft diversion for technical check . VietJet Air . 29 July 2023.

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