Tag: Vietjet

Vietjet’s public listing in the Ho Chi Minh City Stock Exchange in February has been honored as “The IPO Deal of the Year 2017” and “The Company with Best M&A Information Disclosure” at the M&A Awards 2016-2017. As a highlight of the Vietnam M&A Forum 2017, the awards were adjudicated by a panel of independent and renowned M&A experts through nominations by consultation organizations and researchers.

Leading “a series of successful deals” in 2016-2017, Vietjet was highly rated by the panel which named the Vietjet listing as “The IPO Deal of the Year 2017” and “The Company with Best M&A Information Disclosure”. Vietjet’s IPO was professionally conducted following consultations with world-renowned law firms and financial institutions in around 800 days (due on the listing date) in accordance with international IPO standards of Regulation S.

The adjudication panel also lauded the airline for its information disclosure. Vietjet has performed well in building investor relations, attracting intentions of investment funds and the public as well as bringing transparent, detailed and internationally-standardized information to investors and the public.

Vietnam M&A Forum, an annual event for companies and investors from Vietnam and other countries was held in Ho Chi Minh City on August 10, 2017 under the auspices of the Ministry of Planning and Investment. With the theme “Seeking a Big Push”, the Vietnam M&A Forum 2017 was held as a platform to exchange suggestions and introduce opportunities as well as experience sharing for breakthroughs in the market.

Earlier, Vietjet’s 2016 annual report was also honored with a Platinum Award, ranked the 4^th among the Asia Pacific region’s awardees and 11^th out of 100 worldwide at the Vision Awards 2016 presented by the League of American Communications Professionals (LACP). Themed as “the flight to the future”, the 150-page annual report was graded with almost top scores under the criteria of First Impression, Letter to Shareholders, Report Financials and sustainable development programs.

Headquartered in the US, LACP was set up to create a forum within the public relations industry that facilitates discussion of best-in-class practices within the profession while also recognizing those who demonstrate exemplary communications capabilities. The Vision Awards honors outstanding and informative annual reports globally following international standards.

Following its 1H2017 unaudited separated financial statements released last week, Vietjet Aviation Joint Stock Company (HOSE code: VJC) has released its unaudited group financial statements for 1H2017, charting surpassed growth in targets as compared to the same period last year.

Accordingly, overall revenue for 1H2017 stood at USD730.7 million, an increase of around 31 per cent compared to the previous period. Revenue in 2Q2017 on the other hand reached USD503.0 million, an increase of 89 per cent year-on-year.

The group profit before tax in the second quarter was USD66.1 million while the group profit before tax in the first half of 2017 stood at USD 84.7 million, a 44.7 per cent increase year-on-year.

Moreover, the growth in passenger carriage on international routes increased by nearly 130 per cent, making it the main driving force behind the quarter growth. Also, revenue in aviation carriage in 1H2017 stood at USD478.9 million, an increase of 45.1 per cent compared to the same period last year. The company’s profit before tax from aviation carriage reached over USD48.6 million, an increase of 46 per cent year-on-year.

In 2Q2017, Vietjet received five more brand-new A321 aircraft from Airbus, generating USD250.6 million in revenue from aircraft sales. As of 30 June 2017, Vietjet’s total assets were USD1.13 billion, a 50.8 percent increase; while owners’ equity reached USD355.04 million, an increase of 130 per cent year-on-year.

The airline also successfully optimised its operation costs as its cost of Available Seat-Kilometer excluding fuel (CASK ex-fuel) continued to decrease to 2.23 US cents compared to 2.43 US cents in the same period last year. Furthermore, the Revenue per Available Seat-Kilometer (RASK) increased from 4.29 US cents to 4.42 US cents. This puts Vietjet among the most efficient carriers in the world.

As of 30 June 2017, Vietjet operated 30 A320 aircraft and 15 A321 aircraft on 73 domestic and international routes, an increase of 13 routes compared to that of 31 December 2016.This is equivalent to an increase of 37.7 per cent year-on-year, an achievement of the year’s target by 110.6 per cent

The airline conducted a total of 49,151 flights with 8.27 million passengers, charting an average load factor of around 88 per cent and an increase of 22.4 per cent year-on-year. Vietjet also recorded a technical reliability rate of 99.55% and on-time performance rate of 85.7%. Other index rates for operation safety, technical operations and ground operations were among the highest in the Asia-Pacific region.

Vietjet also broke ground for the construction of the Vietjet Aviation Academy in the Saigon Hi-Tech Park in District 9, Ho Chi Minh City, Vietnam. The first element of the academy – the full flight simulator is expected to be operational in the next 12 months.

On July 25, Vietjet and Japan Airlines (JAL) reached a formal comprehensive partnership agreement with the aim of improving customer convenience and operations and service quality while enhancing the corporate value of both companies.

Vietjet today announced a sales promotion for new connecting flights from Seoul/Busan (South Korea) to Siem Reap (Cambodia), that will ease the travel budgets of individuals, tourists and businessmen flying between the famous localities.

On this occasion, Vietjet is to run a three—golden-day promotion from July 12, 13 and 14, 2017 offering 200,000 air tickets priced from HKD0 only. The promotion applies for all international routes between Hong Kong / Seoul, Busan (South Korea) / Kaoshiung, Tainan, Taichung and Taipei (Taiwan) / Singapore / Bangkok (Thailand) / Kuala Lumpur (Malaysia) / Yangon (Myanmar) / Siem Reap (Cambodia) and travels from September 1, 2017 to December 31, 2017.

The Seoul – Siem Reap route is operated daily with tickets priced from HKD430 (USD55). The flight departs from Seoul at 11h05 (local time) with transit in Hanoi and arrives in Siem Reap at 18h40 (local time). The return flight takes off at Siem Reap at 19h30 (local time), transits in Hanoi and lands in Seoul at 07h55 (local time).

The Busan – Siem Reap route is operated daily with tickets priced from HKD550 (USD70). The flight from Busan departs at 08h35 (local time) with transit in Hanoi and lands in Siem Reap at 19h00 (local time). The return flight takes off at Siem Reap at 20h05 (local time), transit in Hanoi and arrives in Busan at 07h00 (local time).

The promotional tickets are available for booking within the golden hours from 13:00 to 15:00 at their website. Payment can be easily made with debit and credit cards of Visa, MasterCard, JCB, KCP and American Express.

With its high-quality services, special low-fare tickets and diverse ticket classes, Vietjet offers its passengers enjoyable flights with dynamic and friendly flight crew, comfy seats, amazing hot meals, special surprises from the airline’s inflight activities and amazing ticket fares through “12pm, It’s time to Vietjet” promotion.

Vietjet and German Operating Aircraft Leasing GmbH & Co. KG (GOAL), a joint venture of KGAL GmbH & Co. KG (KGAL) and Deutsche Lufthansa AG, today signed a strategic agreement paving the way for GOAL to finance Vietjet’s acquisition of four brand new A321 aircraft, worth US$464 million, according to the manufacturer’s listed price.

Vietjet President & CEO Nguyen Thi Phuong Thao, Vietjet Vice President Dinh Viet Phuong, KGAL CEO Gert Waltenbauer and GOAL Managing Director Jochen Baltes represented both parties in signing the contract in the witness of the Vietnamese Prime Minister Nguyen Xuan Phuc and high-ranking dignitaries from Vietnam and Germany.

The acquisition of the four aircraft is part of the A320 family aircraft contract signed earlier between Vietjet and European aircraft manufacturer Airbus. Vietjet will receive the four aircraft within 2017 to meet expansion plans for the airline’s domestic and international flight network.

Speaking at the signing ceremony, GOAL Managing Director Jochen Baltes said: “GOAL and KGAL are very excited about the purchase and leaseback of these four aircraft with one of the world’s most dynamic low-cost airlines. Following this agreement, all parties will continue to work and cooperate together on more opportunities in aviation development in the coming time.”

Vietjet President & CEO Nguyen Thi Phuong Thao commented: “We have received 16 new A321 aircraft from Hamburg, Germany, worth nearly US$2 billion in accordance with the manufacturer’s listed price, including Airbus’ 9,000th A320 aircraft, which created great excitement in Europe. Besides the fact that Germany has provided Vietjet with aircraft, we are truly delighted to work with GOAL, one of Germany’s top aircraft finance and aviation companies. Today’s deal ensures the financing and favorable conditions for Vietjet to further develop its modern fleet, thus helping to enforce the airline’s quality and safety in operations, a key part of our strategy for the long-term development of Vietjet.”

Vietjet reported continuous growth in its business performance in May with the addition of three new aircraft to its new generation fleet, the launch of new international routes and increased frequencies of international flights to meet the increasing travel demand of domestic passengers in the high season.

In May, Vietjet launched the Da Nang – Seoul route; opened sales for Hanoi – Yangon route, which is expected to operate as of August 31, 2017. Besides, Vietjet increased the frequencies of Hanoi – Taipei route to 11 return flights/ week from July 21, 2017 and Hanoi – Seoul route to 14 return flights/ week from August 2, 2017.

Along with the series of new route launches, Vietjet maintained its high load factor, with a rate of over 88%. In the first 5 months of 2017, Vietjet operated nearly 39,100 safe flights, transported more than 6.5 million passengers, an increase of 29% as compared to the same period of 2016. In May, it carried over 1.5 million passengers

Up to the end of May, Vietjet had its own channel for online ticket distribution and consumer services with 21,378 offline sales points, an increase by 2,803 points compared to that by December 31,2016.

With this result, the revenue from airline operation of Vietjet in May approximately stood at VND8,352 billion (around USD3.6 billion), an increase of 44% compared to the same period of the preceding year and exceeding the budget forecast by 9%.

On the international scene, on the visit of the Vietnamese Prime Minister Nguyen Xuan Phuc to the US in late May, Vietjet signed agreements with CFM International, GECAS and Honeywell Aviation, worth a total of USD 4.7 billion.

Later, in Tokyo, Vietjet and Mitsubishi UFJ Lease & Finance (MUL), a member of Japan’s leading finance group Mitsubishi UFJ Financial Group (MUFG), signed a strategic agreement, which would pave the way for MUL to finance Vietjet’s acquisition of three brand new A321 aircraft, worth US$348 million.

Dinh Trong Thinh, an economist, said that listing shares on foreign stock markets is the goal of many enterprises because joining transparent financial markets will help them become global companies.

However, Vietnamese enterprises will have to satisfy strict requirements. To be eligible to list shares on NYSE, for example, a business must have at least 5,000 shares, 2.5 million public shares, and $100 million of gross pre-tax profits made in the last three years.

The high listing fee and the required financial sources to maintain presence on foreign bourses are also a big barrier.

At SGX, for example, the lowest listing fee is 50,000 SGD and the highest is 200,000 SGD. The listing application fee is 20,000 SGD. Enterprises also have to pay a fee of 25,000 SGD to 100,000 SGD every year.

Hoang Anh Gia Lai had to cancel the plan to list its shares at SGX because it was time- consuming and costly, and it was not sure about the efficiency.

“These will still be challenges for Vietjet for the immediate time and future,” Thinh said.

He said that it would be risky for Vietjet and any other Vietnamese businesses to list shares on foreign bourses if they still cannot satisfy requirements according to international standards.

If they are weak at corporate governance, production and business capability, they will not be recognized in the international market, even if they can enter foreign bourses.

“It is more important to consider how long they can stay on the bourse,” he said.

“Vietjet needs to think if it is powerful enough and its shares are prestigious enough to interest international investors. It is not a simple matter,” he said.

Tran Dinh Ba from the Vietnam Economics Science Association believes that with strong determination and potential, Vietjet will succeed.

Vietjet Air is now second to Vietnam Airlines, the nation’s flag air carrer, in domestic market share, but the gap is small, just 1 percent (Vietjet Air 41 percent and Vietnam Airlines 42 percent).

In the stock market, Vietjet Air’s share price is 4.2 times higher than Vietnam Airlines, while its capitalization value has exceeded VND1.448 trillion.

VietJet Air CEO Nguyen Thi Phuong Thao,  is one of two Vietnamese representatives in Forbes 2017 billionaires list. The other is Vingroup chairman Pham Nhat Vuong.

The fast growing New-Age Carrier, Vietjet, will take part in the International Travel Expo (ITE) Hong Kong to be held at the Hong Kong Convention and Exhibition Centre from June 15 to 18, 2017.

As a debutant of this star event of the Asia travel industry, Vietjet will turn out in full force with attractive and informative displays, special offers and promotion programs. The Vietjet Booth at G102 with the theme, “Free Summer, Fly for Free,” will spot the very attractive Vietjet Red and Yellow to welcome its visitors. They will be treated to interesting and interactive activities, from photo-taking opportunities with the popular Vietjet crew to mobile phone games with special prizes for the winners.

The highlight of Vietjet’s presence in the ITE will be a feature performance on the Grand Stage at 2:00 pm on June 17 (Saturday), with a spectacular Flashmob Dance by a leading dance group Helki.Fam. There will also be a drama and game session on stage for visitors from the public.

To celebrate Vietjet’s participation in the ITE, Vietjet also offers 5,000 promotional tickets priced only from HKD0 (excluding taxes & airport fees) within the golden hour 13h-15h during the ITE’s four-day time from June 15 to June 18, 2017 only at their website. The promotion applies for Ho Chi Minh City-Hong Kong route with flight time being from August 1 to December 31, 2017 (excluding national holidays).

The recent Vietjet Summer Promotion, “Free Summer, Fly for Free,” held between April 25 and June 15, 2017, has proven to be very popular among travelers with the 1 million HKD0 tickets.

Based on business results of the financial statements for the first quarter of 2017, the Board of Directors of Vietjet has announced to advance the first phase dividend for 2017 at the rate of 20% in the form of cash. The shareholder list confirmation date will be within July 2017.

Also, according to the issuance plan approved at the company’s annual shareholders meeting in 2016 and based on KPMG audited capital report for the first quarter of 2017, Vietjet agrees to offer a bonus sharedividend to the shareholders at the rate of 100:40 (a compliment of 40 shares per 100 shares owned). Theshareholder list confirmation date will be within July 2017 following the approval of the State Securities Commission of Vietnam, the same time with the list confirmation date for cash dividend distribution.

Accordingly, Vietjet shareholders will receive a 20% cash dividend and 40% bonus share dividend, totaling 60%.

Earlier in May 10, Vietjet finalized the shareholder list for cash dividend for 2016. After the 40% bonus share dividend, those shareholders who have already received shares and cash dividends of 119% for 2016 will continue to receive dividend advance for 2017.

Today in Tokyo, Vietjet and Mitsubishi UFJ Lease & Finance Company Limited (MUL), a member of Japan’s leading finance group Mitsubishi UFJ Financial Group (MUFG), signed a strategic agreement as witnessed by Vietnam’s Prime Minister Nguyen Xuan Phuc and high-ranking dignitaries from Vietnam and Japan. The agreement will pave the way for MUL to finance Vietjet’s acquisition of three brand new A321 aircraft, worth US$348 million, according to the manufacturer’s listed price.

The three aircraft are part of the A320 family aircraft contract signed earlier between Vietjet and European aircraft manufacturer Airbus. Vietjet will receive the aircraft within this year to meet expansion plans for the airline’s domestic and international flight network. The airline has so far taken delivery of more than 20 brand new A321s and A320s.

Under the terms of the agreement, Vietjet and MUL will also work together to share best practices for the operation and management of airlines.

Last week, in the U.S., Vietjet also signed a series of deals worth a total of US$4.7 billion for engines and components maintenance support and its techical services, auxiliary power unit (APU) supply and APU technical maintenance and aircraft financing and/or purchasing.

Hot on the heels of the launch of the sensational promotion campaign of “Free summer, Fly for free”, Vietjet announces a three-golden-day promotion on 06, 07, 08 June 2017, which offers 800,000 promotional tickets priced from only HKD0 within the golden hours 13h-15h at www.vietjetair.com. The promotion is applied for all international routes from Vietnam to Hong Kong, Seoul and Busan (South Korea), Kaohsiung, Taipei, Taichung and Tainan (Taiwan), Singapore, Bangkok (Thailand), Kuala Lumpur (Malaysia), Yangon (Myanmar) and Siem Reap (Cambodia) with travel time being from August 1, 2017 to December 31, 2017 (except public holidays).

Especially, all customers successfully booking tickets at www.vietjetair.com with instant payment within the golden hours from now to June 15, 2017 will also have the chances to join the lucky draw for the gifts of mobile phone top-up cards and air ticket promotion codes at summerwin.vietjetair.com.