VietJet flies high amid economic downturn

• Published Dec 8, 2015 9:14 PM KST
• Updated Dec 8, 2015 9:14 PM KST

This year has been a struggle for the aviation industry with incessantly-occurring accidents such as aircraft crashes and MERS outbreak, as well as the prolonged economic recession. Despite the challenging conditions, VietJet Air, the first privately owned new-age airline based in Vietnam, has achieved exceptional growth since it first route connected Incheon to Hanoi in July 2014. The airline has continuously made investments in its fleet and route expansion this year to become Asia’s representative low cost carrier.

Massive introduction of new aircrafts

Currently, VietJet boasts a fleet of 29 aircraft, including A320s and A321s, and operates 190 flights each day. This number shows that VietJet has been expanding its fleet faster than any other low cost carrier globally. VietJet has also partnered with diverse companies this year to introduce more aircrafts to keep up with developing demand. The airline signed MOU with Boeing last July, paving the way for the potential acquisition of Boeing aircrafts, and signed MOU with various global finance corporations including Mitsubishi UFJ Lease & Finance, BNP Paribas, and JP Morgan Chase to finance its leasing and acquisition of new aircrafts.

Recently, VietJet also inked a deal with Airbus to purchase 30 more A321 jets (nine A321ceo and 21 A321neo), worth a total of $3.6 billion. The newly ordered aircrafts whose advanced design helps reduce fuel costs, CO2 emissions are expected to boost the carrier’s efficiency and protect environment as well. They will be delivered from late 2016 until 2020 to meet the airline’s operation expansion to Asian countries. VietJet plans to receive from eight to 12 new aircrafts every year.

Aggressive route expansion through dual hub strategy

VietJet remains bullish on its expansion plans within the Asia-Pacific region and intends to launch more joint ventures with other regional airline partners as well. It has already opened 38 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, South Korea, Taiwan, China and Myanmar. In terms of network expansion, VietJet has a dual hub strategy, with Hanoi mainly focused on destinations to the north, especially north-east Asia and Ho Chi Minh City concentrating more on south-east Asia.

Last month, VietJet also announced the opening of its new route linking South Korea's capital Seoul with Ho Chi Minh City with a frequency of seven return flights per week. With this new route, VietJet now operates daily flights connecting Seoul to Hanoi and Ho Chi Minh City, where passengers can find it easy to fly to other Vietnam tourist-attraction destinations such as Da Nang, Nha Trang and Phu Quoc Island with the most affordable prices.

For more visit www.vietjetair.com.