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VietJet Air

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VietJet Air
IATA ICAO Call sign
VJ VJC VIETJET[1]
Founded30 November 2007; 17 years ago (2007-11-30)
Commenced operations25 December 2011; 12 years ago (2011-12-25)
Operating bases
Frequent-flyer programVietJet Skyclub
SubsidiariesThai VietJet Air
Fleet size77
Destinations115[2]
Parent companySovico Holdings, HDBank
Traded asHOSE: VJC
HeadquartersBa Đình district, Hanoi, Vietnam
Key peopleNguyen Thi Phuong Thao (CEO)
Revenue40.414 trillion VNĐ ($1.722 billion USD)
Total assets68 trillion VNĐ ($2.557 billion USD)
Employees2,000
Websitewww.vietjetair.com

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 Ministry 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 the Great Recession 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

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Foundation delays

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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).[3] 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, 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.[6]

Operations

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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

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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 ₫90,000 (US$ 4.02) 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

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Greenwash

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In 2020 VietJet advertising was called out for greenwash promotion:‘Protect our planet – fly with Vietjet’.[28] In 2024 the company again claimed to be selling "eco tickets" in Singapore and beyond, despite the company having only ever flown 2 flights with "sustainable" aviation fuel. [29]

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The key trends for VietJet are (as of the financial year ending 31 December):[30]

Revenue[a]
(VNDtr) 		Net profit
(VNDb)[31] 		Number of
passengers
(m) 		Number of
international
routes[32] 		Passenger
load factor
(%)[33] 		On-time
performance
(%) 		Fleet size[34] References
2017 42.3 5,303 16.7 52 84 86 54 [32][35]
2018 53.5 5,335 21.3 66 83 84 74 [32][36]
2019 50.6 3,807 23.7 85 82 86 78 [32]
2020 18.2 69 12.1 - 74 87 71 [32]
2021 12.8 80 5.4 33 67 94 76 [32]
2022 40.1 −2,261 20.6 48 80 92 75 [32]
2023 58.3 231 25.3 80 85 87 [33]

Destinations

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Countries served by VietJet as of September 2024[37][38]
Main article: List of VietJet Air destinations

As of November 2023 VietJet Air serves 13 countries and 99 routes.[2]

Codeshare agreements

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VietJet Air codeshares with the following airlines:

Fleet

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VietJet Air Airbus A320-200
VietJet Air Airbus A321-200
VietJet Air Airbus A321neo
VietJet Air A330-300

Current fleet

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As of 16 May 2024, VietJet Air operates an all-Airbus fleet composed of the following aircraft:[41]

VietJet Air fleet
Aircraft In service Orders Passengers Notes
J Y Total
Airbus A320-200 17 — — 180 180
Airbus A321-200 6 — — 220 220
30 230 230[42]
Airbus A321neo 11 101 — 230 230[43] Some of its fleet are grounded for engine inspection.[44]
20 240 240 Equipped with Airbus Cabin Flex configuration.[45]
Airbus A321XLR — 20[46] TBA
Airbus A330-300 7[47] —[48] 12 365 377[49] To be replaced by Airbus A330-900.
Airbus A330-900 — 20[50] TBA Deliveries from 2026 and will replace Airbus A330-300.[51][52]
Boeing 737 MAX 8 — 66[53] TBA The first 50 aircraft will be transferred to the Thai subsidiary.[53]
Deliveries from 2024 to 2028.[citation needed]
To receive first 12 in 2024.[citation needed]
Boeing 737 MAX 10 — 106[53] TBA
Boeing 737 MAX 200 — 28[53] TBA
Total 91 341

Fleet development

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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.[54][55] 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.[56][57][58]

In December 2019, VietJet Air had one of its first Boeing 737 MAX 200 aircraft rolled out from the Boeing factory.[59][60][61] However, the plane was not taken up afterwards and was delivered to Akasa Air.[citation needed]

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.[62] 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.[63]

Services

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VietJet Air offers three service options (fares):

  • Eco
  • Deluxe
  • Skyboss/Skyboss Business[64][65]

Accidents and incidents

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

  • 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.
  • 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.[66]
  • 2 April 2015: a disabled passenger flying back to Hanoi from Da Nang was denied service by two VietJet employees, citing being "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.
  • 30 September 2015: VietJet Air Flight 496, an Airbus A320-200 (registered 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.[67]
  • 28 January 2018: VietJet caused some controversy by putting models wearing bikinis on the flight bringing the Vietnam U-23 football team home. VietJet CEO Nguyễn Thị Phương Thảo later publicly apologized.[68]
  • 7 September 2018: VietJet Air Flight 1848 from Hanoi to Taichung flew through a hailstorm, causing damage to the cockpit window. The flight was forced to return to Hanoi.[69]
  • 29 November 2018: VietJet Air Flight 356, a newly delivered Airbus A321neo (registered 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.[70]
  • 12 July 2019: VietJet Air Flight 615 from Nha Trang 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.[71]
  • 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.[72]
  • 28 June 2023: VietJet Air Flight VJ975 from Seoul, South Korea to Phu Quoc made a diversionary landing on Laoag, Philippines after a technical fault was detected by the pilots. None of the 214 passengers and crew members were hurt.[73][74]

See also

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Notes

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  1. ^ "Consolidated revenue"

References

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  1. ^ "JO 7340.2J Contractions" (PDF). Federal Aviation Administration. 10 October 2019. Retrieved 15 November 2019.
  2. ^ a b "VietJetAir on ch-aviation". ch-aviation. Retrieved 9 November 2023.
  3. ^ a b "Hàng không giá rẻ VietJet Air bay dịp tết". Tuổi Trẻ Online. 30 November 2011.
  4. ^ a b "Vietnamese government approves country's first privately owned airline". Forbes. 30 November 2007. Archived from the original on 7 March 2009.
  5. ^ "Kinh tế 24h VietJet Air chính thức cất cánh từ 25/12". Vietnam Economic Forum. 29 November 2011.
  6. ^ a b "VietJet Air to take off next month". Vietnam News Service. 30 November 2011. Retrieved 30 November 2011.
  7. ^ "VietJet Air welcomes its 10 millionth passenger". VietJet Air. Retrieved 11 February 2015.
  8. ^ "Vietjet receives the 24,999,999th passenger". VietJetAir.com. VietJet Air. Retrieved 23 December 2015.
  9. ^ "VietJetAir thay Tổng Giám đốc". Báo Công an Nhân dân điện tử.
  10. ^ "[1]." "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. ^ a b "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. ^ VietJet Air seeks to delay launch for 5th time Archived 2012-03-20 at the Wayback Machine. June 16, 2010. Tuoi Tre.
  15. ^ "AirAsia calls off Vietnam joint venture". Agence France-Presse. 12 October 2011. Archived from the original on 25 February 2014.
  16. ^ "Article not found". Manila Bulletin. Archived from the original on 7 September 2012.
  17. ^ "Vietjet Air prepare to launch the first flight". Valc.com. Retrieved 4 January 2015.
  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. ^ Manila Bulletin. "VietJetAir orders 63 Airbus A320s for major fleet expansion". Manila Bulletin - Latest Breaking News - News Philippines. Retrieved 4 January 2015.
  20. ^ Manila Bulletin (24 September 2013). "Vietnam's VietJet seen close to major Airbus order". Manila Bulletin - Latest Breaking News - News Philippines. Retrieved 4 January 2015.
  21. ^ "Vietjet signs several major contracts at Paris Air Show 2015". www.vietjetair.com. 17 June 2015. Retrieved 8 August 2022.
  22. ^ "Airbus, Vietjet Announce Deal for 30 Planes at Dubai Airshow". VOA. 10 November 2015. Retrieved 8 August 2022.
  23. ^ 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.
  24. ^ Orban, André (6 September 2016). "Vietjet to expand its Airbus fleet with new order for 20 A321s". Aviation24.be. Retrieved 8 August 2022.
  25. ^ Darkunde, Mahesh (25 July 2022). "Vietjet confirms 200 Aircraft Boeing Order at Farnborough International Airshow". Aviation A2Z. Retrieved 8 August 2022.
  26. ^ Woodhouse, Alice; Peel, Michael (28 February 2017). "VietJet shares surge after Vietnam's biggest public listing". Financial Times. Retrieved 8 August 2022.
  27. ^ "Vietjet Shares To Be Officially Listed On Hose". www.vietjetair.com. Retrieved 8 August 2022.
  28. ^ Robin Hicks (26 February 2020). "Vietnam airline called out for greenwash promotion: 'Protect our planet – fly with Vietjet'". Retrieved 27 November 2024.
  29. ^ Robin Hicks (27 November 2024). "Robin Hicks on LinkedIn: #greenwashing #marketing #advertising #publicrelations". Retrieved 27 November 2024.
  30. ^ "Annual reports". ir.vietjetair.com. Retrieved 30 July 2024.
  31. ^ "Yearly profit after tax of Vietjet Air". Statista. Retrieved 4 November 2023.
  32. ^ a b c d e f g "Vietjet Annual Report 2022" (PDF). Vietjet. Retrieved 4 November 2023.
  33. ^ a b "Vietjet Annual Report 2023" (PDF). 31 March 2024.
  34. ^ "Yearly number of aircraft in operation of Vietjet Air". Statista. Retrieved 4 November 2023.
  35. ^ "Annual Report 2017" (PDF). Vietjet. Retrieved 4 November 2023.
  36. ^ "Vietjet announces its audited financial statement of 2018: Core business continues to increase 49%, international revenue surpassed domestic ones". www.vietjetair.com. Retrieved 4 November 2023.
  37. ^ "Route map VietJet". Flightconnections. 1 September 2024.
  38. ^ "VietJet Online Booking". Vietjet. 1 September 2024.
  39. ^ "Japan Airlines and Vietjet to commence codeshare flights" (Press release). VietJet Air. Retrieved 19 October 2018.
  40. ^ "Lao Airlines / VietJet Air Begins Reciprocal Codeshare Partnership in 4Q24".
  41. ^ Airbus Orders and Deliveries (XLS), monthly updated, accessed via "Orders & deliveries". Airbus. Airbus SAS.
  42. ^ "vietjet-receives-the-worlds-first-ever-230seat-a321ceo-with-sharklets - news - VietJetAir.com - Enjoy Flying!". www.vietjetair.com. Retrieved 3 January 2021.
  43. ^ "VietJet receives first A321neo aircraft". en.nhandan.org.vn. Retrieved 3 January 2021.
  44. ^ "Vietnamese carriers ground aircraft over P&W engine issues". Ch-Aviation. Retrieved 11 March 2024.
  45. ^ "PICTURES: VietJet receives first 240-seat 'Cabin Flex' A321neo". Flightglobal. Retrieved 26 September 2019.
  46. ^ "Vietjet orders A321XLR and signs Airbus training services agreement". Airbus. 28 October 2021.
  47. ^ "Vietjet Receives Sixth Airbus A330". VietJet Air. Retrieved 1 April 2022.
  48. ^ VnExpress. "Vietnam, France sign billion-dollar agreements during PM Chinh's visit - VnExpress International". VnExpress International – Latest news, business, travel and analysis from Vietnam. Retrieved 4 November 2021.
  49. ^ "Updated: Vietjet Air is preparing for A330 operation - Airliners.net". www.airliners.net. Retrieved 4 November 2021.
  50. ^ "Vietjet to order 20 A330neo widebodies". Airbus. 22 February 2024.
  51. ^ Doran, Michael (22 February 2024). "VietjetAir inks MOU for twenty A330-900Ns". Ch-Aviation. Retrieved 22 February 2024.
  52. ^ "Vietjet to order 20 A330neo widebodies" (Press release). Airbus. 22 February 2024.
  53. ^ a b c d "VietJetAir now expects B737 MAX deliveries from 2024". ch-aviation. Retrieved 15 September 2022.
  54. ^ VTV, BAO DIEN TU (23 May 2016). "Vietjet Air đặt mua 100 máy bay Boeing trị giá 11,3 tỷ USD". BAO DIEN TU VTV (in Vietnamese). Retrieved 29 December 2023.
  55. ^ baochinhphu.vn (22 July 2022). "Vietjet và Boeing tiếp tục hợp đồng mua bán 200 tàu bay". baochinhphu.vn (in Vietnamese). Retrieved 29 December 2023.
  56. ^ "Boeing và Vietjet đạt thoả thuận về hợp đồng 200 tàu bay". qdnd.vn. Retrieved 29 December 2023.
  57. ^ "Thoả thuận đặt hàng máy bay qua 3 đời Tổng thống". baodautu (in Vietnamese). Retrieved 29 December 2023.
  58. ^ NLD.COM.VN. "Vietjet và Carlyle thỏa thuận tài trợ 550 triệu USD mua máy bay Boeing 737 Max". Báo Người Lao Động Online (in Vietnamese). Retrieved 29 December 2023.
  59. ^ "Hình ảnh đầu tiên về Boeing 737 MAX 8 của Vietjet Air". Znews.vn (in Vietnamese). 17 December 2019. Retrieved 29 December 2023.
  60. ^ "Chưa về Việt Nam, Boeing 737 MAX 8 của Vietjet Air đã 'lộ hàng'". Báo điện tử VTC News (in Vietnamese). 17 December 2019. Retrieved 29 December 2023.
  61. ^ "Những hình ảnh đầu tiên về Boeing 737 Max 8 của Vietjet, chưa rõ ngày bàn giao vì đang bị cấm bay". vovgiaothong.vn (in Vietnamese). Retrieved 29 December 2023.
  62. ^ "VietJet Air Firms Airbus A330neo Order". aviationweek.com. 24 July 2024. Retrieved 25 July 2024.
  63. ^ "Vietjet mua 20 máy bay thân rộng thế hệ mới A330neo của Airbus". 22 February 2024.
  64. ^ "skyboss". www.vietjetair.com. Retrieved 27 August 2019.
  65. ^ "VietJet receives first A321neo aircraft". en.nhandan.org.vn. Retrieved 27 August 2019.
  66. ^ "Máy bay VietJetAir hạ cánh sai đường băng" [VietJet airplane landed on wrong runway]. Vietnam Net (in Vietnamese). 23 October 2014.
  67. ^ "ASN Wikibase Occurrence # 180077". Aviation Safety Network. Retrieved 26 July 2017.
  68. ^ "Xem xét phạt Vietjet vụ người mẫu bikini trên chuyên cơ chở U23" [Fines considered for bikini model case on plane carrying U23] (in Vietnamese). 29 January 2018.
  69. ^ Nguyen, Quy (12 September 2018). "Máy bay Vietjet bị mưa đá làm nứt kính buồng lái" [VietJet aircraft was hit by hail and cracked the cockpit window]. Kinh Te & do thi (in Vietnamese). Retrieved 4 August 2019.
  70. ^ "VietJet plane makes troubled landing, minor injuries to some passengers". Reuters. 30 November 2018. Retrieved 4 December 2018.
  71. ^ "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] (in Vietnamese). Tuoi Tre. 12 July 2019. Retrieved 4 August 2019.
  72. ^ Cong, Huu (14 June 2020). "Aircraft skids off runway in HCMC amid heavy rains". VnExpress International. Retrieved 14 June 2020.
  73. ^ "Vietjet plane with 214 people aboard lands safely in Laoag after technical problem". Inquirer.net. 28 June 2023. Retrieved 29 July 2023.
  74. ^ "Aircraft diversion for technical check". VietJet Air. Retrieved 29 July 2023.
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