Tag: Vietjet

The plan comes amid the government’s easing of rules to potentially allow more foreign investment in the aviation market. VietJet Aviation Joint Stock Co., which controls almost half of Vietnam’s domestic airline market, is in talks to become the first company in the Southeast Asian nation to list its shares in an overseas stock exchange, Bloomberg reported.

Vietjet announced the launch of another three-golden-day promotion as the exciting “Free summer, Fly for free” campaign has proven to be very popular among passengers. The campaign offers millions of promotional tickets priced from only HKD 0 within the golden hours 13:00 to 15:00 from May 9 to May 11, 2017 at www.vietjetair.com.

The promotion applies for all international routes from Ho Chi Minh City to Hong Kong, Seoul (South Korea), Kaohsiung, Taipei, Taichung and Tainan (Taiwan), Singapore, Bangkok (Thailand), Kuala Lumpur (Malaysia) and Yangon (Myanmar); and from Hanoi to Seoul, Busan, Taipei, Bangkok, Singapore and Siem Reap (Cambodia) with travel time being within August 1, 2017 and December 31, 2017 (except public holidays). The “Free summer, Fly for FREE” campaign is being held from April 25 to June 15, 2017 and in celebration of the opening of the new Hanoi to Singapore and Siem Riep routes, a three-golden-day promotion was offered earlier.

Especially, from now to June 4, 2017, participants of “Free summer – Fly for Free” game at www.freesummer.vietjetair.com will have the chances of winning a weekly award of 5 free return flights, each flight with 5 free tickets for a five-person group and a grand award of a free package tour to an optional destination.

Also, all customers successfully booking tickets 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’s top-up cards and air ticket promotion codes (*) at www.summerwin.vietjetair.com. Besides, the summer campaign will launch a series of activations including interactive games, amazing performances by Vietnamese and international celebrities, “Vietjet Bikini” challenge at some domestic airports and onboard Vietjet flights, which are expected to “heat up” the coming summer.

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 and special surprises from the airline’s inflight activities.

To celebrate the coming summer, Vietjet launches its most outstanding campaign ever – “Free summer, Fly for FREE” from April 25 to June 15, 2017, offering one million promotional tickets priced from only HKD0 within the golden hours 13:00 – 15:00 at www.vietjetair.com together with some very interesting activities.

During the campaign’s first week, Vietjet will run a three-golden-day promotion from April 25 to 27, 2017. This applies for all Vietnam domestic and 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 period between May 15, 2017 and December 31, 2017 (excluding national holidays).

The promotional tickets are available for booking within the golden hours from 13:00 to 15:00 at www.vietjetair.com or at www.facebook.com/vietjethongkong (just click the “Booking” tab). Payment can be easily made with debit and credit cards of Visa, MasterCard, JCB, KCP and American Express.

Especially from May 8, 2017 to June 4, 2017, participants of the “Free Summer – Fly for FREE” game at Vietjet’s microsite: freesummer.vietjetair.com will have the chances of winning a weekly award of 5 free return flights, each flight with 5 free tickets for a five-person group and a grand award of a free package tour to an optional destination.

Also, all customers successfully booking tickets at www.vietjetair.com with instant payment within the golden hours (13:00-15:00) from May 8, 2017 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 www.summerwin.vietjetair.com. Besides, the summer campaign will feature a series of activities including interactive games, amazing performances by Vietnamese and international celebrities, “Vietjet Bikini” challenge at some domestic airports and onboard Vietjet flights, which are expected to “heat up” the coming summer.

Vietjet is to embark on a Five-year Plan to enable sustainable growth beginning 2017. The ambitious plan was announced at the Annual Shareholders’ Meeting of the Vietjet Aviation Joint Stock Company in Ho Chi Minh City.

The program, focusing on sustainable development, involves investments in enhancing internal human resources; protecting the environment; carrying out corporate social responsibilities; complementing national tourism development strategy; promoting local economic development; popularizing cultural practices and aviation civilization among passengers and in the community.

In 2017, Vietjet is committed to operating the airline with top priorities on safety and reliability, continuing to innovate and improve service quality and operation efficiency and managing the recently listed company in accordance with international standards and the Vietnamese Accounting Standards (VAS) and International Financial Reporting Standards (IFRS).

“Vietjet is ready to conquer new heights. I am confident that there is a bright future in the air and Vietjet is making every effort to bring it closer,” said Vietjet Chairwoman Nguyen Thanh Ha.

The meeting also reviewed the operation of the fast growing new-age carrier in 2016, approved the business plan for 2017 as well as the contents related to management and administration.

ACHIEVEMENTS IN 2016

Report of business results in 2016 submitted to the meeting showed that Vietjet achieved positive business results in 2016. The airline operated 84,455 safe flights, recorded high percentage of OTP at 83.57% and of technical reliability at 99.57%, being listed in the top airlines that operate A320/A312 family in the region. Flight operation, ground operation and engineering safety indicators are listed in the group of highest quality airlines in the region. The airline also recorded in 2016 its turnover of 27,499 billion dong (USD1.21 billion), after tax profit of 2,496 billion dong (USD109 million), an increase of 38.6 percent and 113.2 percent respectively compared to 2015, exceeding 3 percent and 9 percent respectively over the target. Earnings per share stood at 9,586 dong (USD0.42).

In 2016, Vietjet received 12 new aircraft, increasing its fleet to 41 aircraft including 30 A320 and 11 A321 aircraft, transporting 14.05 million passengers, an increase of 50.9% compared to 2015, leading the Vietnam domestic market.

CEO Nguyen Thi Phuong Thao, who created the concept of bikini-clad flight attendants, told local media that she wants to make Vietjet become the “Emirates of Asia”.

Such goals are admirable, and insiders believe the IPO will bring further success to the “bikini airline”.

Taking off

After five years of operations, Vietjet has had a level success that other airlines would envy.

Vietnam’s only private airline ordered 100 new jets from Boeing in May last year, worth $11.3 billion, and signed a contract in September to purchase 20 A321 aircraft from Airbus, witnessed by State President Tran Dai Quang and French President François Hollande.

With the two contracts, it continues to drive towards its goal of having a “Red Revolution” in Vietnam’s aviation sector and becoming a global airline.

The five-year-old Vietjet surpassed national flag carrier Vietnam Airlines in domestic passenger transport during the recent Tet holidays, according to the Civil Aviation Authority of Vietnam (CAAV).

Over the six-day holiday, Vietnam Airlines carried 175,146 passengers and Vietjet 209,179, for market shares of 35 per cent and 42 per cent, respectively.

The only competitor of Vietjet Air is low-cost carrier Jetstar Pacific, a subsidiary of Vietnam Airlines. But Vietjet Air far outstrips Jetstar Pacific in revenue and market share.

While Vietnam Airlines, in which the State owns more 90 per cent, found it quite difficult to find strategic partners, Vietjet attracted 26 foreign investors after announcing its plan to conduct an IPO.

Vietjet has also closed the gap with Vietnam Airlines in terms of profit.

While Vietjet’s pre-tax profit increased 91.6 per cent in 2016 to VND2.3 trillion ($101.9 million), Vietnam Airlines’ pre-tax profit was VND2.5 trillion ($110 million), up 140 per cent and 7 per cent higher than the annual plan.

And its share price is much more attractive than Vietnam Airlines’.

According to the Hanoi Stock Exchange (HNX), Vietnam Airlines’ shares trade on the UPCoM Market with a reference price of VND28,000 ($1.2) and are expected to reach VND40,000 ($1.7).

Vietjet’s reference price, meanwhile, has been predicted to stand at VND90,000 ($4).

“The capital raised by Vietjet in the offering will help support the expansion of its international routes and the enlargement of its fleet, which are critical for it to compete in the Asian aviation market – one of the fastest growing and most dynamic aviation markets in the world,” said Mr. James Grandolfo, a Partner in the Hong Kong office of Milbank, which is the advisor in Vietjet’s IPO.

The appeal of Vietjet is its low cost, as budget airlines have become the key driver of Vietnam’s fast-growing aviation market and transported 55 per cent of domestic passengers in 2016.

Budget airlines are rapidly increasing their market share, with an annual growth rate of 15-20 per cent, according to Mr. Lai Xuan Thanh, Head of CAAV.

Given the strong development of low-cost airlines, Vietjet, the dominant player in Vietnam’s low-cost market, quickly captured a 40 per cent share of the local market and will likely surpass Vietnam Airlines within the next few years as Vietnam’s largest domestic carrier.

So who will benefit from Vietjet’s IPO? Obviously, it’s a win-win for Vietjet and its partners.

The economy, according to many economic experts, will also be a winner from the deal.

“A sizable capital source will be mobilized, in particular funds from foreign financial institutions,” said Mr. Nguyen Hoang Hai, Deputy Chairman of the Vietnam Association of Financial Investors.

“The IPO will be a test of how much foreign capital Vietjet can rally by promising continued expansion and rising profits, banking on the past few years of impressive growth that have turned it from a startup to a major carrier that is expected to soon hold the largest market share in Vietnam.”

Vietjet on February 18, 2017 received investment approval from the People’s Committee of Ho Chi Minh City – Board of Management of the Saigon Hi-Tech Park for the establishment of its Aviation Technology Centre project. 

As part of the massive program to the develop the Vietjet Aviation Academy in the Saigon Hi-Tech Park, the project will break ground next month and is scheduled to go into operation in December, 2017. The First Phase of the project will be a Full Flight Simulator Centre for pilot training, providing run in operation with aircraft manufacturer Airbus.

The Vietjet Aviation Technology Center will be built on a 5.54 hectare site at the R&D Training and Incubation Zone (Science Zone) – “the heart” of the Saigon Hi-tech Park. With its detailed planning and comprehensive organization, Vietjet targets to develop the Aviation Technology Center as a professional aviation research and training center of international standards

In keeping with the airline’s rapid expansion, Vietjet attaches great importance in training. The airline’s training center, which opened in early 2015, has so far trained 8,287 staff and provided 655 training courses for a total of 25,249 training hours with 3,351 certificates issued, all of which guaranteeing the development of Vietjet’s international standard and professional expertise that will oversee the airline’s steady and sustainable growth. 

In another positive development on the same day, Vietjet today received full membership from the International Air Transportation Association (IATA), affirming the new-age carrier’s role and position in both the Vietnamese and international aviation community.

Prior to attaining the full membership, Vietjet had been certified by the IATA Operational Safety Audit (IOSA). IATA, the most professional, consistent and comprehensive voice of the international aviation industry, actively seeks to support and increase the benefits for all airline members through international recognition, orientation for the industry priorities, encouragement for promotion and innovation in the industry, cost management and cooperation campaigns for communication, training and other services.

In his congratulatory letter to Vietjet, Antony Tyler, Former Director General & CEO of IATA said: “I am honored to congratulate Vietjet on receiving IATA’s full membership. IATA’s mission is to represent, lead and serve the airline industry and is the collective voice of some 272 airlines from over 117 countries worldwide. Our vision is to be the force for value creation and innovation driving a safe, secure and profitable air transport industry that sustainably connects and enriches our world. I believe in Vietjet and hope the airline will continue to have more fruitful achievements by maximizing the benefits of being an IATA’s member.”

During its five years of operations, Vietjet has been honored with 32 domestic awards and nine international renowned awards. Besides being named as one of “Top 500 Brands in Asia 2016” by global marketing research company Nielsen, Vietjet was also voted as the “Best Asian Low Cost Carrier” at the TTG Travel Awards 2015 and “Vietnam’s Most Favorite Airline” by The Economic Times of Vietnam. The airline has also been consistently awarded as the “Best Work Place” and “Best Employer Brand” in Asia.

Vietnam’s biggest private airline is expected to surpass flag carrier Vietnam Airlines this year as the nation’s top domestic carrier.