VietJet Air

VietJet Aviation Joint Stock Company (Vietnamese: Công ty Cổ phần Hàng không VietJet), trading as VietJet Air or Vietjet, is an international low-cost airline[2] from Vietnam. It was the first privately owned new-age airline to be established in Vietnam, being granted its initial approval to operate by the Vietnamese Minister of Finance in November 2007.[3] 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.

For airline based in Thailand, see Thai Vietjet Air.
VietJet Air
IATA ICAO Callsign
VJ VJC VIETJETAIR[1]
FoundedNovember 2007 (2007-11)
Commenced operations25 December 2011
Hubs
Subsidiaries
Fleet size73
Destinations46
Parent companySovico Holdings, HDBank
HeadquartersBa Đình, Hanoi, Vietnam
Key peopleNguyen Thi Phuong Thao (CEO)
Employees2000
Websitewww.vietjetair.com

The carrier's launch was beset by long delays attributed to various causes, such as a global economic slowdown and regulatory issues. Although 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2010 that it planned to purchase a 30% stake in the airline through a joint venture agreement, the carrier later rescinded its plans, citing "a failure to obtain Vietnamese regulatory approvals".[4][5] Despite the setbacks, VietJet Air's first flight was operated on 25 December 2011, flying from Ho Chi Minh City to Hanoi.[6][7] The carrier carried its 10 millionth passenger in December 2014,[8] and the 25 millionth passenger in December 2015.[9]

History

Foundation delays

The airline has its head office in the Vạn Phúc Diplomatic Corps in Ba Đình, Hanoi[10] It was the first privately owned airline to be established in Vietnam,[3] 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, Jetstar Pacific Airlines, Air Mekong and the Vietnam Air Service Company (VASCO).[2] 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.[11] 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. Later news reports from the state-controlled Vietnam News Agency echoed these initial reports, stating that "the airline's four-year delay in takeoff was due to the global economic crisis", referring to the late-2000s global financial crisis.[7]

In February 2010, Southeast Asian low-cost carrier AirAsia announced that it had purchased a 30% stake in the airline.[14] By mid-2010, a date of October 2010 was being given for the maiden flight, with officials stating the additional delay was due to unresolved branding conflicts with the Civil Aviation Administration of Vietnam (CAAV).[15]

By February 2011, VietJet was said to be "completing final stages" prior to launch before its operation license expired in June.[16] In March, AirAsia reportedly indicated it might withdraw funding from VietJet if the airline was unable to resolve its branding issues before the June deadline.[17] Indeed, in October 2011, AirAsia announced it was calling off its plans to form a joint venture with VietJet, citing "a failure to obtain Vietnamese regulatory approvals", including the permission to use the AirAsia brand in the airline's commercial operations.[4] Despite the collapse of the AirAsia joint venture, VietJet announced in November that its launch plans would proceed.

Start of operations

The airline's maiden flight was eventually launched on 25 December 2011, flying from Ho Chi Minh City to Hanoi.[7]

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 launches its first international flight between Ho Chi Minh City and Bangkok becoming the first Vietnamese private airline to enter the international market.

As a low-cost carrier (LCC) Vietjet does not have any direct booking capabilities with the Global Distribution Service (GDS) companies, Amadeus CRS, Sabre, or Travelport. This lack of connectivity limits the ability of the airline to attract interline connecting passengers for inbound and outbound flights. The problem is due in part to the lack of the airline joining Iata's Vietnam BSB which regulates the IATA accredited airlines banking settlement operations in the country. To get around the issue Vietjet has utilised an interline ticketing partner, Hahn Air (HR),[19] which allows for ticketing in more than 194 jurisdictions, but excludes ticketing in Vietnam. In August 2016 Hahn Air announced that they could provide ticketing for domestic Vietnam flights on Vietjet via the Amadeus platform, effectively locking out the other GDS systems for domestic ticketing in Vietnam.

On 11 February 2014, at the opening of that year's Singapore Air Show, the airline firmed up orders with Airbus for 60 A320 aircraft at a list price of $6.4 billion.[20] Previously, the airline had signed a Memorandum of Understanding with Airbus for 92 planes in the A320 family.[21]

On 17 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. On 10 November 2015 at the Dubai Air Show, Vietjet placed a further order for 30 A321s with Airbus. The deal reportedly includes 21 A321neos along with 9 A321ceos. At the same time, the airline confirmed the leased of 10 A319s from Air Berlin with delivery from 2016 to 2017, however, the A319 order was later cancelled and the airline decided to upgrade them to the larger A321s.

On 23 May 2016 during a visit of President Obama, an order for 200 Boeing 737 MAX aeroplanes was signed with deliveries to start in 2019.[22] On 6 September 2016, CEO Nguyen Thi Phuong Thao announced an order for 20 A321 single-aisle aircraft from Airbus. The signing took place during the visit of French President Francois Hollande.

During the 2018 Farnborough Airshow, Vietjet signed two MLUs, one with Boeing on July 18 consisted of 100 Boeing 737 MAXs (80 MAX 10s and 20 MAX 8s), and the other with Airbus on July 19, consisting of 50 A321 NEOs.

Public offering

On 28 February 2017, Vietjet completed its public listing and officially became a fully listed entity on the Ho Chi Minh City Stock Exchange (HOSE), making it the first airline in Vietnam to be listed on the bourse.[23]

The airline's market capitalization stood at $1.2 billion, accounting for 1.5 percent of HOSE's capitalization as of 15 February 2017.

With its public listing, Vietjet became the first Vietnamese firm to have completed an IPO that meets Securities Act of 1933 standards and practices.

BNP Paribas, Deutsche Bank, and JP Morgan Chase were the IPO's foreign joint global consultants.

Vietjet Air was a launch customer of the A321neo in Southeast Asia with first deliveries in December 2017.

Financials

According to pre-audited financial statements for 2019, Vietjet's air transport revenue reached VND41,097 billion. Profit before tax of air transport rose to VND3,936 billion, an increase of 21.4% in revenue and 29.3% in profit before tax year-on-year. Accumulated revenue was VND52,059 billion and consolidated profit was VND5,010 billion. Vietjet's total assets increased to VND47,608 billion, and equity rising to VND17,661 billion, an increase of 26% year-on-year.[24]

Destinations
Main article: List of VietJet Air destinations

VietJet Air serves 18 domestic and 26 international destinations.

Codeshare agreements

VietJet Air codeshares with Japan Airlines[25] and its subsidiary Thai Vietjet Air.

Fleet

As of March 2020, the VietJet fleet includes the following aircraft:[26][27]

Vietjet Air fleet
Aircraft In Service Orders Passengers Notes
Airbus A320-200 18 — 180
Airbus A321-200 7 — 220[28]
32 230[29][30]
Airbus A321neo 11 102
5 240 Equipped with Airbus Cabin Flex configuration.[31]
Airbus A321XLR — 20[32] TBA
Boeing 737 MAX 8 — 20[33]
Boeing 737 MAX 200 — 100[34]
Boeing 737 MAX 10 — 80[33]
Total 73 322

Services

VietJet Air offers three service options (fares):

  • Promo
  • Eco
  • Skyboss (an extended service)[35][36]

Accidents and incidents

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

  • On 19 June 2014, VietJet Air Flight 8861 from Hanoi to Da Lat mistakenly landed at Cam Ranh International Airport. The reason was revealed to be pilot error. There were two flights, one from Hanoi to Nha Trang and the other from Hanoi to Da Lat, but one of the aircraft experienced technical difficulties and the aircraft was switched to another. Everyone was informed except for the captain of the flight. Everyone involved was suspended for further investigation.
  • On 16 October 2014, VietJet Air Flight 8856 departing from Ho Chi Minh City to Nha Trang landed on the wrong runway. The ATC repeatedly told the pilot to land on runway 02L, the pilot also repeated the messages correctly but later landed on runway 20R. The captain and the first officer were suspended.[37]
  • On 2 April 2015, a disabled passenger flying back to Hanoi from Da Nang was denied service by two Vietjet employees, citing "unable to move by herself" and "did not notify the ground crew at the airport in time". The carrier later had to publicly apologize to the passenger and fined each employee VND5 million.
  • On 30 September 2015, VietJet Air Flight 496, an Airbus A320 (VN-A650) suffered a bird strike incident while on approach to Noi Bai International Airport. The aircraft from Buon Ma Thuot Airport landed safely on runway 07R. The aircraft's nose radome sustained substantial damage.[38]
  • On 7 September 2018, Vietjet Air Flight 1848 from Hanoi to Taichung was hit by a hailstorm, causing damage to the cockpit window. The flight was forced to go back to Hanoi.[40]
  • On 29 November 2018, VietJet Air Flight 356, a newly delivered Airbus A321NEO (VN-A653), suffered a hard landing at Buon Ma Thuot Airport after arriving from Tan Son Nhat International Airport. The aircraft lost both tires on the nose gear. Six passengers were injured. The aircraft was later grounded, pending investigation and repairs. The pilots were later fired and suspended by the Civil Aviation Authority.[41]
  • On 12 July 2019, VietJet Air Flight 615 from Cam Ranh to Ho Chi Minh City entered a wrong taxiway upon landing, forcing an approaching aircraft to go-around. The incident is under investigation by the Aviation Authority.[42]
  • On 14 June 2020, VietJet Air Flight 322 from Phu Quoc to Ho Chi Minh City skidded off the runway during landing at Tan Son Nhat International Airport, causing delays to other flights. Passengers on this flight were later evacuated. No one was injured. The airline said heavy rain due to tropical storm Nuri was the cause of this incident.[43]

References
  1. "JO 7340.2J Contractions" (PDF). Federal Aviation Administration. 10 October 2019. Retrieved 15 November 2019.
  2. "Hàng không giá rẻ VietJet Air bay dịp tết". Tuổi Trẻ Online. 30 November 2011.
  3. "Vietnamese government approves country's first privately owned airline". Forbes. 30 November 2007.
  4. "AirAsia calls off Vietnam joint venture". Agence France-Presse. 12 October 2011.
  5. Archived 2012-09-07 at Archive.today
  6. "Kinh tế 24h VietJet Air chính thức cất cánh từ 25/12". Vietnam Economic Forum. 29 November 2011.
  7. "VietJet Air to take off next month". Vietnam News Service. 30 November 2011. Retrieved 30 November 2011.
  8. "VietJet Air welcomes its 10 millionth passenger". VietJet Air. Retrieved 11 February 2015.
  9. "Vietjet receives the 24,999,999th passenger". VietJetAir.com. VietJet Air. Retrieved 23 December 2015.
  10. "." "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. "VietJet website: FAQ". Archived from the original on 7 November 2007. Retrieved 10 January 2020.
  12. "Foreign boss leads Vietnam's first private airline".
  13. VIETJET AIR to launch the first flight in Quarter IV Archived 2011-09-01 at the Wayback Machine. March 10, 2009. VietJet Air.
  14. Leithen Francis (11 February 2010). "AirAsia buying 30% of VietJet". Flightglobal. Air Transport Intelligence news. Retrieved 28 May 2010.
  15. VietJet Air seeks to delay launch for 5th time Archived 2012-03-20 at the Wayback Machine. June 16, 2010. Tuoi Tre.
  16. "Vietjet Air prepare to launch the first flight". Valc.com. Retrieved 4 January 2015.
  17. AirAsia muốn rút vốn khỏi Vietjet. VNExpress.net. March 31, 2011. (in Vietnamese)
  18. "Vietnam Airline Fined for In-Flight Bikini Show". August 9, 2012. Archived from the original on August 13, 2012. Retrieved August 9, 2012.
  19. "Home - Hahn Air". Retrieved 29 March 2017.
  20. Manila Bulletin. "VietJetAir orders 63 Airbus A320s for major fleet expansion". Manila Bulletin - Latest Breaking News - News Philippines. Retrieved 4 January 2015.
  21. Manila Bulletin. "Vietnam's VietJet seen close to major Airbus order". Manila Bulletin - Latest Breaking News - News Philippines. Retrieved 4 January 2015.
  22. John Boudreau; Nguyen Dieu Tu Uyen (22 May 2016). "Boeing Wins $11.3 Billion Order for 100 Planes From VietJet". Bloomberg. Retrieved 30 July 2016.
  23. "Vietjet completes $1.2bn listing on Ho Chi Minh City bourse". TuoiTreNews.vn. Retrieved 13 April 2017.
  24. "How Vietjet is overcoming the pandemic" (Press release). Bangkok Post. 17 April 2020. Retrieved 17 April 2020.
  25. "japan-airlines-and-vietjet-to-commence-codeshare-flights - news - VietJetAir.com - Enjoy Flying!". www.vietjetair.com. Retrieved 3 January 2021.
  26. "Vietjet Air Fleet Detail and History". planespotters.net. Retrieved 13 April 2017.
  27. "Airbus orders and deliveries". Airbus. February 2019. Archived from the original on 8 March 2019. Retrieved 22 April 2019.
  28. TITC. "Vietjet Air receives first Airbus' A321". Vietnam National Administration of Tourism (in Vietnamese). Retrieved 3 January 2021.
  29. "vietjet-receives-the-worlds-first-ever-230seat-a321ceo-with-sharklets - news - VietJetAir.com - Enjoy Flying!". www.vietjetair.com. Retrieved 3 January 2021.
  30. "VietJet receives first A321neo aircraft". en.nhandan.org.vn. Retrieved 3 January 2021.
  31. "PICTURES: VietJet receives first 240-seat 'Cabin Flex' A321neo". Flightglobal. Retrieved 26 September 2019.
  32. "Vietjet orders A321XLR and signs Airbus training services agreement". Airbus.
  33. "Boeing, VietJet Sign Agreement for 100 737 MAX Airplanes". Boeing. Retrieved 4 December 2018.
  34. "VietJet Aviation Announces Order for 100 737 MAX 200 Airplanes". Boeing. Retrieved 19 March 2019.
  35. "skyboss". www.vietjetair.com. Retrieved 27 August 2019.
  36. "VietJet receives first A321neo aircraft". en.nhandan.org.vn. Retrieved 27 August 2019.
  37. News, VietNamNet. "Máy bay VietJetAir hạ cánh sai đường băng". VietNamNet.
  38. "ASN Wikibase Occurrence # 180077". Aviation Safety Network. Retrieved 26 July 2017.
  39. "Vietnamnet - Xem xét phạt Vietjet vụ người mẫu bikini trên chuyên cơ chở U23".
  40. "Máy bay Vietjet bị mưa đá làm nứt kính buồng lái". Retrieved 4 August 2019.
  41. Editorial, Reuters. "VietJet plane makes troubled landing, minor injuries to some..." Retrieved 4 December 2018.
  42. "Máy bay đi nhầm đường lăn, một máy bay khác sắp hạ cánh phải bay lên lại". Tuoi Tre. Retrieved 4 August 2019.
  43. Cong, Huu (14 June 2020). "Aircraft skids off runway in HCMC amid heavy rains". VnExpress International. Retrieved 14 June 2020.
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