Tag: Vietjet

  • Bamboo Airways set to downsize fleet

    Bamboo Airways set to downsize fleet

    After restructuring its flight network, Bamboo Airways has said it will also reduce the number of aircraft to lower costs.

    An executive at the airline said the restructuring in the past two months included discontinuing unprofitable routes.

    The airline has not yet announced the number or type of aircraft that will be grounded.

    According to German civil aviation database Planespotters, Bamboo Airways currently operates 23 aircraft, seven fewer than last year.

    It plans to seek approval from regulatory authorities to increase the size of its fleet to over 30 in future, though again, no concrete plans have been announced.

    In a recent report to the Ministry of Transport, the Civil Aviation Authority of Vietnam said it supports the expansion plan but added the airline needs to ensure it has the financial capacity, human resources, and aviation infrastructure.

    By flying three different aircraft – Airbus, Boeing, and Embraer – that do not allow interoperability, Bamboo Airways has additional costs in terms of hiring pilots, technicians, and training instructors for each of them.

    Many other Vietnamese carriers, such as Vietjet, Pacific Airlines, and Vietravel Airlines, only fly Airbus aircraft.

    All of Vietnam Airlines’ narrow-body aircraft are from Airbus, while its wide-body ones are a mix of Airbus and Boeing.

  • Vietjet signs $550m funding deal for aircraft order

    Vietjet signs $550m funding deal for aircraft order

    Vietjet and Carlyle Group, a US-based financial firm, have signed an aircraft financing agreement worth US$550 million during the official visit of the US President Joe Biden to Vietnam.

    The agreement will see Carlyle Aviation Partners, a subsidiary of the Carlyle Group, finance the 200-aircraft order announced earlier between Vietjet and Boeing. The order is considered one of the largest commercial contracts to date and one that contributes greatly to the trade balance between Vietnam and the United States.

    This order, which is worth over US$25 billion, will be implemented in five years with the first delivery of 12 aircraft scheduled for 2024. The first batch of 737 Max will be delivered to Bangkok-based affiliate Thai Vietjet.

    “Carlyle Aviation Partners has been a long-term strategic partner of Vietjet,” said Robert Korn -Co-Founder & President of Carlyle Aviation Partners. “We are pleased to accompany and witness Vietjet’s aggressive growth over the last decade. The airline has offered passengers reasonable fares and convenient travel options; thus contributing positively to the aviation and tourism development; also fostering investment between Vietnam and the international community.”

    Founded in 2002 with headquarters in Miami, Carlyle Aviation Partners is in the business of global aircraft finance and leasing. It currently manages a fleet of 396 aircraft in 59 countries and is owned by Carlyle Group, which manages US$385 billion in total assets.

  • Vietjet partners 2023 Sydney Marathon

    Vietjet partners 2023 Sydney Marathon

    Vietjet has become the air transport partner for the Sydney Marathon, and is offering free tickets to the event.

    The Sydney Marathon takes place from September 14 to 17 in the Australian city, and will feature many activities for athletes, locals and tourists.

    The runners will pass through famous landmarks like Milsons Point, the Sydney Harbor Bridge, Centennial Park, the Royal Botanic Gardens, the Sydney Opera House…

    The race is expected to attract more than 40,000 runners from more than 75 countries.

    It will also raise funds for charities supporting children and people with disabilities.

    To mark the occasion, Vietjet is selling tickets for zero dong (excluding taxes and fees) to Australia on Wednesday, Thursday and Friday every week from now until March 31, 2024, on its website and app.

    According to the airline, besides the 2023 Sydney Marathon, it is also collaborating with other global cultural and sporting events, demonstrating its desire to bring new values by spreading the message of humanity and sporting spirit to hundreds of millions of customers and people in Vietnam and elsewhere.

    With an extensive flight network and flexible flight times, Vietjet offers many options to international passengers with its new routes from HCMC to Jakarta (Indonesia), Kochi and Tiruchirappalli (India), and other destinations and leading entertainment destinations in the region in Australia, Japan, Korea, Taiwan (China), Hong Kong (China), Singapore, Thailand…

    Flight tickets come with Sky Care travel insurance. All flights are supported by experienced crew and fresh, hot food.

  • Vietnam’s sole female billionaire becomes chairwoman of Vietjet

    Vietnam’s sole female billionaire becomes chairwoman of Vietjet

    Nguyen Thi Phuong Thao, Vietnam’s only female billionaire, has become the chairwoman of budget airline Vietjet.

    Dinh Viet Phuong, who has been with the company since its establishment in 2007, moved up to CEO.

    Thao, who replaced Nguyen Thanh Ha as chairwoman on Thursday, was the deputy chairwoman and CEO of Vietjet for many years. She is the first self-made female billionaire in Vietnam.

    Phuong has been holding the chief operations officer title since October 2020. He has made many contributions to the airline, helping it to survive during the Covid-19 period.

    He has an engineering degree from Vietnam Maritime University, an MBA degree from France’s CFVG and a doctorate in transport from Russia’s Moscow State Academy.

    Last year Vietjet transported 20.5 million passengers on 116,000 flights and saw number of domestic passengers grow 20% from pre-Covid.

  • Aviation stocks rise amid expected industry recovery

    Aviation stocks rise amid expected industry recovery

    Stocks of Vietnam Airlines, Vietjet and other companies in the aviation industries have surged as the resumption of flights to China amid its relaxed Covid-19 policy boosted investors’ sentiment.

    HVN of state-owned Vietnam Airlines closed last week at a ceiling price in its third session in the green and returned to the mid-October price range of around VND11,750 ($0.50).

    Meanwhile, VJC of budget airline Vietjet, the only airline blue chip, gained 5% to close at VND111,500.

    SAS of Tan Son Nhat Airports Services and AST of Taseco Airs, which mostly provide services at Noi Bai International Airport, all gained three sessions to close at VND22,000 and VND54,000, respectively.

    These stocks gained after China relaxed its Covid-19 restrictions and several Vietnamese airlines, such as Vietnam Airlines and Bamboo Airways, announced a flight resumption to Chinese cities.

    Analysts of brokerage VNDirect said earlier this month that the most damaging factor for Vietnam’s tourism and aviation recovery is China’s zero-Covid policy which has been strictly imposed in most of the last three years.

    Chinese tourists accounted for 35% of total foreign tourists in Vietnam before the pandemic, and the figure is forecast to reach 20% in early next year before returning to the old level in early 2024, they added.

    “As the earnings of Vietnamese aviation companies have a high dependency on international traffic, we believe that their figures will surge starting next year.”

    Another reason for the surge in aviation stocks is an increasing number of investors buying the dip after the plunges.

    It also warned that risks such as high oil prices, heavy competition and weakening travel demand due to a global economic slowdown might have impact on the recovery of aviation stocks.

  • Vietjet Air, Boeing restructure 200 aircraft deal

    Vietjet Air, Boeing restructure 200 aircraft deal

    Vietjet Air and Boeing have officially signed a restructuring agreement to continue a contract to purchase 200 Boeing 737 aircraft.

    Under the agreement signed at the 2022 Farnborough International Airshow from July 18-22, Boeing and budget carrier Vietjet Air have agreed on a flexible delivery schedule in line with Vietjet’s global business plan to complete this important deal.

    The first aircraft of the deal will be delivered to Vietjet Thailand, the Vietnamese carrier’s Thai subsidiary.

    The agreement affirms Boeing’s commitment to support Vietjet with training, technical services, technology transfer, research and investment, facilitating long-term development and sustainability of both corporations.

    In 2016, Vietjet signed a deal to purchase 100 Boeing aircraft when the then US President Barack Obama was visiting Vietnam. Three years later, both sides agreed to raise the total number of aircraft to 200 when the then US President Donald Trump visited Hanoi.

    The deal is being resumed this year after the hiatus triggered by an unexpected incident with the Boeing 737 Max aircraft and the Covid-19 pandemic.

  • Vietjet eyes 10-fold jump in profits amid return to post-pandemic normalcy

    Vietjet eyes 10-fold jump in profits amid return to post-pandemic normalcy

    Budget airline Vietjet targets profits of VND1 trillion (US$43.14 million) this year, 10 times the 2021 figure, as it seeks to recover from a two-year slump caused by Covid-19.

    It eyes a 2.5-fold rise in revenues to VND32.72 trillion. At the company’s annual general meeting on Saturday, shareholders expressed concern over the rising oil prices, but the management was optimistic.

    To Viet Thang, deputy CEO, revealed that when oil prices reach $100 per barrel, operation costs increase by 50 percent.

    CEO Nguyen Thi Phuong Thao said the airline has flown when oil prices were above $100 and still made profits.

    “We are always ready to buy fuel at low price and store them to optimize costs.”

    She also said a surcharge is levied when fuel prices surge and this eases the burden on the company.

    Vietjet plans to return to its pre-pandemic schedule domestically and resume 70 percent of international flights.

    Shareholders approved a plan to issue up to 54 million new shares, or 10 percent of the company’s free float.

    Vietjet recently placed a $35-billion order for 200 Boeing 737 aircraft and engine maintenance services.

  • Aviation yet to gain takeoff momentum

    Aviation yet to gain takeoff momentum

    On Mar. 15, Vietnam fully reopened its borders to foreign tourists, allowing quarantine-free entry and reinstated its pre-pandemic visa policies, including waivers for nationals of 24 countries.

    “These positive moves have contributed to strengthening confidence in a brighter picture for the aviation industry this year,” Nguyen Huu Nam, deputy director of the HCMC chapter of the Vietnam Chamber of Commerce and Industry (VCCI), said at an event held last week to present the Vietnam International Aviation Exhibition (VIAE 2022) set to take place in September.

    Regarding this year’s prospects, brokerage Bao Viet Securities (BVSC) has said in recent report that if new coronavirus variants are not too dangerous, international routes can recover strongly from the end of the second quarter onwards.

    It has forecast the number of domestic and international passengers in 2022 at 30 million and five million, up 89.9 percent and 4.6 percent respectively over last year.

    Meanwhile, Viet Capital Securities JSC (VCSC) estimates the number of domestic flights has reached 94 percent of the pre-pandemic period (2019).

    The company expects that the total number of domestic passengers for Vietnam Airlines and Vietjet Air this year will be 92 percent and 91 percent of 2019, respectively; and that of international passengers will be 44 percent.

    Nguyen Phuoc Thang, Head of Science – Technology and Environment Department of Civil Aviation Authority of Vietnam, said from now until the end of August, carriers will increase the number of flights to serve tourists and the market will recover “very quickly.”

    The industry is coming out of two quiet years, resuming international commercial flights about a month ago.

    As for international flights, Vietnam officially resumed services on nine routes on Jan. 1 before reopening flights to all markets starting mid-February with several Covid related restrictions.

    According to the General Statistics Office, 91,000 foreigners arrived in Vietnam in the first quarter, up 89.1 percent against the same period last year. Of these, 90.5 percent came on flights, up 165.2 percent.

    In 2021, the number of passengers dropped to the lowest ever level in history, to 15.9 million, with that of foreign and domestic passengers dropping by 96.5 percent and 50.5 percent against 2020, respectively.

    As the fourth Covid-19 wave hit the country in April last year, domestic flights were put on hold late August and only a limited number of flights resumed early October.

    Between Oct. 10-20, only one return flight was allowed on 19 domestic routes compared to 58 routes in 2019. and it was not until after that pilot period that domestic flights resumed gradually.

    The demand for flying in Vietnam entered the “new normal” phase during the latest Tet, or Lunar New Year holiday, which last nine days starting Jan. 29.

    According to the Vietnam Air Traffic Management Corporation (VATM), Vietnamese carriers operated 10,711 flights on domestic routes between Jan. 29 and Feb. 2, an increase by more than 69 percent against the previous Tet holiday.

    However, the aviation industry has several obstacles to contend with before it gains a strong recovery momentum. One major obstacle is access to its major feeder markets before the pandemic, namely, China, South Korea, Japan and Russia.

    For now, China is still pursuing a “zero Covid” policy and South Korea still maintains tight border control. The ongoing Russia-Ukraine crisis will also prevent Russian tourists from going on tours abroad.

    The VCSC has suggested that Vietnam diversify its markets while waiting for the traditional ones to recover.

    According to Destination Insights with Google, the U.S. and Europe are among markets with the highest search demand for information on accommodation and air travel to Vietnam since the reopening was announced.

    The other obstacle airlines could face in the near future is fuel prices, which accounted for 29 percent and 43 percent of the input costs for Vietnam Airlines and Vietjet Air in the 2015-2019 period.

    In January, the average price of jet fuel rose to about $101 per barrel, higher than the $77.8 forecast by the International Air Transpo

  • Airlines resume hiring as they embark on recovery

    Airlines resume hiring as they embark on recovery

    Bamboo Airways, Vietjet and Vietravel Airlines have started hiring again after an extended recruitment freeze due to Covid-19. Bamboo Airways has posted hiring announcements for many positions, including pilots, flight engineers and cabin crew aid plans to expand its fleet and destinations.

    The airline is offering captains a monthly salary of US$13,300 for flying wide-body Boeing 787s and $10,450 for narrow-body Airbus and Embraer jets, which are higher than pre-pandemic levels. Nguyen Ngoc Trong, its deputy general director, said the carrier is seeking permission to expand its 30-strong fleet by five to 10 aircraft each year.

    It operated at maximum capacity during the nine-day Tet, or Lunar New Year, holidays in early this month, and plans to launch new services to the US and Europe in the second quarter of this year, he added.

    Budget airlines Vietjet has also posted notices seeking captains and co-pilots for Airbus A320Fs and A330s.

    Vietravel Airlines is hiring pilots for its Airbus A320/A321 fleet as well as cabin crew.

    Representatives of Vietravel Airlines said the recruitment is to “ready for the expansion of the fleet” and “launch new routes to northeast and southeast Asian nations in the third quarter.”

    But human resources could be scarce this year as airlines resume hiring after their Covid-19 woes, they added.

    Vietnam has resumed commercial flights to 20 of 28 countries and territories that it operated direct flights to before the pandemic.

    The country also ended all restrictions on international flights on Feb. 15.

    From March 15, Vietnam will reopen inbound and outbound tourism under new normal conditions, with foreign tourists allowed to visit the country without booking tour packages.

    In the best case scenario, Vietnam’s aviation industry would transport 42-43 million passengers in 2022, or around 50 percent of pre-pandemic numbers, Bui Minh Dang, deputy head of the air transportation department at the Civil Aviation Authority of Vietnam, said.

  • Vietnam stock market makes bright start after Tet holidays

    Vietnam stock market makes bright start after Tet holidays

    The VN-Index began the new lunar year with a 1.5-percent jump Monday morning, led by aviation and energy stocks. It gained 22 points to 1,503 points at 11.20 as the market reopened after the nine-day Tet break, reaching a near four-week high. It represents a 4.1-percent recovery from the bottom of 1,439 points reached on January 18 as investors booked profit before the holidays.

    Most brokerages expect the index to rise this week since no negative news came out during the holidays. Analysts at ASEAN Securities and BIDV Securities said the VN-Index is set to stay in the 1,500 levels this week. It closed in the green on an opening day on five of the last six years since 2016, only dipping in 2020 when Covid-19 first hit Vietnam.

    The VN30 basket, comprising the 30 largest capped stocks, saw 24 of them gain Monday, led by VJC of budget airline Vietjet, which rose by 6.6 percent as investors expect a recovery by the aviation industry after the government announced plans to revive international tourism by March-end.

    Vietnam Airlines (HVN) gained 7 percent to the ceiling and its highest in over three months.

    Airports Corporation of Vietnam (ACV) rose by 7.4 percent with volumes reaching 321 percent of the average of the last 10 sessions.

    Energy stocks also rose, with PLX of fuel distributor Petrolimex climbing by 6 percent and GAS of state-owned Petrovietnam Gas gaining 6.2 percent. POW of electricity producer Petrovietnam Power Corporation was up 6.5 percent. Companies expected to benefit from rising consumer demand, such as VRE of real estate retail firm Vincom Retail and MSN of conglomerate Masan Group were the other gainers.

    The HNX-Index on the Hanoi Stock Exchange, home to mid-and small-cap companies, was up 1.2 percent, and the UPCoM-Index on the Unlisted Public Companies Market had gained 1 percent at the time of publishing.

  • Vietjet, Rolls Royce ink $400-mln engine deal

    Vietjet, Rolls Royce ink $400-mln engine deal

    Budget airline Vietjet has signed a $400-million agreement with British company Rolls Royce for aircraft engines for its wide-body fleet and engine servicing.

    The signing ceremony on Sunday was witnessed by Prime Minister Pham Minh Chinh, who is in the U.K. for the 26th United Nations Climate Change Conference, according to a statement from the airline.

    Rolls Royce Civil Aerospace’s chief customer officer, Ewen McDonald, said the company’s Trent 700 engine has the lowest lifetime fuel burn on its aircraft type, and has logged more than 60 million hours in service since its launch in 1995.

    It is the only engine specifically designed for Vietjet’s wide-body aircraft, he said without naming the model.

    The carrier’s managing director, Dinh Viet Phuong, said the new engines would improve flight range and quality and boost Vietjet aircraft’s technical reliability and operational efficiency.

    Vietjet has a fleet of 90 single-aisle aircraft.

    Rolls-Royce has more than 400 airline and leasing customers and 160 armed forces and navies.

    Vietjet, which began flying in 2011, also signed a $20-million reinsurance agreement with brokers Gallagher Co. and Willis Towers Watson Co. for its entire fleet, according to a separate statement it put out.

  • Bamboo Airways, Vietjet suspend regular flights

    Bamboo Airways, Vietjet suspend regular flights

    Bamboo Airways, Vietjet, and Pacific Airlines have suspended most of their regular routes amid a surging number of Covid-19 cases that have seen demand plunge.

    Bamboo Airways will cease all regular flights for two weeks from July 26 to August 7 amid the severe spread of the disease and social distancing measures imposed in major cities, it stated.

    Websites of Vietjet and Pacific Airlines on Tuesday showed few or no flights between popular destinations like Hanoi, Ho Chi Minh City, and Da Nang.

    Most passenger flights between HCMC and Hanoi have been canceled since July 23 as the capital imposed strict social distancing.

    Vietnam Airlines is the only carrier operating on this route with a maximum of two flights a day allowed.

    Between June 19 and July 18, the number of flights plunged 84.6 percent to 3,772, according to the Civil Aviation Authority of Vietnam (CAAV).

    Vietnam has recorded 105,287 local Covid-19 patients in 62 cities and provinces since the new wave started three months ago.

  • Vietjet raises $43.6 mln from bonds

    Vietjet raises $43.6 mln from bonds

    Budget airline Vietjet has raised VND1 trillion ($43.61 million) from a domestic company to expand operations amid the Covid-19 pandemic.

    The bonds are without collateral with a maturity of five years starting from May 24.

    Revenues in the first quarter fell 56 percent year-on-year to VND4.05 trillion. In the same period, the company reaped post-tax profit of VND123.32 billion.

    The profit came from its other investment to make up for the loss in its main business that is taking hits from social distancing.

    It managed to lower operating costs by half and sales and administration costs by 39 percent.

  • Launch of direct Vietnam-US flight routes a challenging journey

    Launch of direct Vietnam-US flight routes a challenging journey

    Acquiring flight slots at U.S. airports is only the beginning of a challenging journey to making the Vietnam-U.S. direct route a reality, experts say.

    Private carrier Bamboo Airways recently acquired slots to operate regular direct flights from Ho Chi Minh City to San Francisco and Los Angeles starting September.

    The airline plans to begin charter flights starting July and regular flights in September with four flights a week.

    The flights would be operated using the long-haul Boeing 787-9 Dreamliner aircraft. The carrier said it was rushing to complete the final steps in the process of building its personnel apparatus, including pilot and flight crew training, to get ready for operating direct flights to the U.S.

    While the latest development stirs new hopes for direct flights between the two countries, something that airlines and officials have been discussing and working on for nearly two decades, there are still many hurdles to overcome.

    Aviation expert Nguyen Thien Tong said that apart from flight slots, each Vietnamese airline will need to acquire various safety permits from U.S. agencies before getting the go-ahead for direct flights.

    Vietnam Airlines, with decades of experience in the industry, seems to be the most promising candidate to secure these permits, while Bamboo Airways, having operated for only two years, might face stiff challenges in proving its capability to conduct such long direct flights, he told VnExpress International.

    Last September, national flag carrier Vietnam Airlines had became the first Vietnamese airline to secure permits from the U.S. Department of Transportation for direct flights to the U.S.

    The airline last month received licenses from the Civil Aviation Authority of Vietnam (CAAV) to operate the Airbus A350 aircraft to the U.S. It had already acquired a permit for the Boeing 787.

    Last year, Vietnam Airlines conducted over 20 charter flights between the two countries.

    But, for regular flights, various permits are needed from the Federal Aviation Administration (FAA), the Transportation Security Administration (TSA) and the U.S. Customs and Border Protection (CBP).

    The TSA is one of the toughest obstacles with its stringent requirements. It will send experts to examine Vietnamese airports before proceeding further.

    A CAAV official told local media that the current fleet of Vietnam Airlines and Bamboo Airways with their Boeing 787-9 and the Airbus 350 won’t be able to fly directly to the U.S. at full capacity (over 300 seats).

    For long direct flights, the Boeing 777x and Airbus A350-1000 are needed, but the two carries do not own such jets, he said.

    Apart from concerns over technical challenges, experts have also questioned the profitability of Vietnam-U.S. direct flights.

    Vietnam Airlines CEO Le Hong Ha said the carrier might have to bear a loss of $30-50 million a year in the first five years of operating direct Vietnam-U.S. flights.

    Bamboo Airways chairman Trinh Van Quyet had earlier calculated that the airline could earn VND8 billion ($346,700) a month from direct flights with return ticket prices of around $1,300.

    But it is difficult to confirm those figures, especially as U.S. airlines, such as United Airlines and Delta Air Lines have launched and suspended direct flights to Vietnam after making losses, Tong said.

    There are currently no direct routes between the two countries, and passengers have to transit through Hong Kong, South Korea or Taiwan, taking 18-21 hours in all. A direct flight would shorten the travel time to 15-17 hours.

    Tong also said that with the ongoing Covid-19 pandemic it is unclear when a regular direct route will be established.

    Americans are among the top foreign visitors to Vietnam, with 687,226 arrivals in 2019, and an ethnic Vietnamese population of over 2.1 million in the U.S. is also expected to be a steady source of travel demand.

  • Vietjet to sell 17.7 mln treasury shares

    Vietjet to sell 17.7 mln treasury shares

    The board of budget carrier Vietjet has approved a proposal to sell 17.7 million treasury shares equivalent to 3.28 percent of its charter capital.

    It would help fund expansion and preparations for recovery after the pandemic this year, the airline said.

    Vietjet’s VJC shares closed at VND136,000 ($5.89) on March 8, and at this price the carrier will earn over VND2.4 trillion from the deal.

    It plans to complete the transaction in the first half of this year.

    Vietjet had bought the shares in August 2019 for VND132,063 each. In June 2020, the carrier announced it was seeking to sell them to a strategic investor.

    Vietjet was among the few airlines to make a profit and not fire any employee amid the Covid-19 pandemic last year. It recorded a consolidated after-tax profit of VND70 billion in 2020.