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flee

VietJet Air 2016 outlook: overtakes Vietnam Airlines in domestic market as IPO planned for 1H2016

By flee, in General Aviation

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flee    5

flee
Posted
800x600_1380090063_A320_Vietjet_Air.jpg


25 SEPTEMBER 2013

Vietnam’s VietJetAir has signed a Memorandum of Understanding for up to 92 A320 Family aircraft and will lease eight more from third party lessors. The agreement signed with Airbus today covers for 42 A320neo, 14 A320ceo and six A321ceo, plus 30 purchase rights for the A320 Family.


VietJetAir is an existing A320 operator, with eight leased aircraft already in service. The carrier took delivery this week of its ninth A320, delivered new from Airbus via the US leasing company AWAS.


“The A320 has proven to be extremely efficient in service with VietJetAir and is a favourite with our passengers, said Mr. Luu Duc Khanh - Managing Director of VietJetAir. “Based on this experience, we look forward to developing our business with the most economic and comfortable aircraft available today.”


"We are pleased to welcome VietJetAir as a new customer of Airbus,” said John Leahy, Airbus Chief Operating Officer, Customers. “This important agreement underscores the A320 Family's position as the preferred choice in the single aisle segment in the fast-growing South East Asian market. We look forward to working with VietJetAir as it builds on its success to date and contributes to ever more affordable travel in this important region of the world.”


Founded in 2007, took off the inaugural flight on 24 December 2011, VietJetAir is the first private airline in Vietnam to operate domestic and international flights. Today the airline’s network covers 11 destinations within Vietnam, plus international services to Bangkok.


With more than 9,800 aircraft ordered and over 5,700 delivered to 385 customers and operators worldwide, the A320 Family is the world's best-selling single-aisle aircraft product line.


Source: Airbus

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flee    5

flee
Posted
Vietnam’s VietJet Air has become the latest Asian low-cost carrier group to announce a major aircraft order in support of an ambition to build a portfolio of LCC affiliates.


VietJet’s commitment to buy 62 A320 family aircraft may be small in comparison to the massive orders placed by AirAsia and Lion in recent years. But it is significant in that it shows VietJet is serious in becoming a pan-Asia player, following the model of AirAsia, Jetstar, Lion and Tigerair.


AirAsia, Lion, Tigerair and Jetstar operate across Asia-Pacific and dominate the Southeast Asian LCC market, accounting for about 77% of LCC seat capacity and 75% of the ASEAN-based LCC fleet. While Southeast Asia is a large and fast-growing market, five is a potentially unsustainable number of LCC groups, particularly when taking into account some of the countries also have very strong independent LCCs.



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flee    5

flee
Posted
Four flight dispatchers and the crew of a plane that landed at the wrong airport in Vietnam last week have been suspended.


The VietJet Air flight carrying nearly 200 passengers flew to Cam Ranh airport, near the beach town Nha Trang on Thursday, instead of its scheduled destination of Da Lat, a popular tourist destination in the highlands about 130 kilometres away.


A VietJet spokesman told The Nation that the error was due to a miscommunication between the crew and the dispatchers.


The Civil Aviation Authority said the licences of the VietJet crew and dispatchers had been temporarily withdrawn over the weekend "for failing to work in accordance with standard flight operations".



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Waiping    12

Waiping
Posted (edited)

NICE!!! Always of the opinion that the winglet fits better on the A321 than A320. On the A320 it seems like the wings is longer than the fuselage.

Edited by Waiping

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flee    5

flee
Posted

It will look even better on the NEO - right now the engines look a little too small!

 

AK should really consider using A321neos sometime in the future. CASK on the A321 will be better and this aircraft can be used on their more popular routes.

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Adrian M    0

Adrian M
Posted

Interesting enough, this aircraft is not a new aircraft. MSN 5295's first flight was in Oct 2012 and then become Airbus Test Aircraft. It is also spot a minor chevron nacelle design on the engines. It should be having a bargain price tag for Vietjet to bag a Test Aircraft home.

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flee    5

flee
Posted

Vietjet to expand its fleet with order for 30 additional A321s

 

800x600_1447143684_A321_VIETJET_01.jpg

 

A320 Family confirmed as aircraft of choice for growing Vietnamese carrier
10 NOVEMBER 2015 PRESS RELEASE
Vietnamese carrier Vietjet has placed a firm order with Airbus for the purchase of 30 more A321s (9 A321ceo and 21 A321neo). The order was signed at the Dubai Airshow by Vietjet President and CEO, Nguyen Thi Phuong Thao, and John Leahy, Airbus Chief Operating Officer, Customers.
“Today’s order for additional A321s responds to our growth strategy and to the need for additional seat capacity on both domestic and international routes,” said Nguyen Thi Phuong Thao, Vietjet President and CEO “Our aim is to be Vietnam and Asia’s new age carrier, known for quality, efficiency and comfort and our A320 fleet has earned us this reputation.”
“This additional order from the fast growing airline Vietjet confirms the success of the A320 Family as the preferred choice for airlines in the single aisle market”, said John Leahy. “We are delighted Vietjet once again selected the A321, our largest single aisle and the perfect partner for the airline’s continued impressive growth.”
Vietjet first took to the skies at the end of 2011 and now operates a fleet of 29 A320 Family aircraft including three A321s, on a network covering Vietnam and a growing number of destinations across Asia. Following today’s announcement the airline has placed firm orders with Airbus for a total of 99 A320 Family aircraft.
The A321 is the largest member of the best-selling single aisle A320 Family. To date, the A320 Family has won more than 12,200 orders and over 6,700 aircraft have been delivered to more than 300 operators worldwide.
Incorporating new engines and the latest technologies, the A320neo Family will bring a step-change reduction in fuel consumption of over 15 per cent from day 1 and 20 per cent by 2020, longer range capability and reduced maintenance costs, as well significantly reduced carbon emissions. With over 4,300 orders received from more than 75 customers since its launch in 2010, the A320neo Family has captured some 60 percent share of the market.

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flee    5

flee
Posted

web.jpg

 

With an IPO expected in 1H2016, Vietnamese privately owned low cost carrier VietJet Air is planning more rapid expansion for 2016. This will result in further domestic market share gains and a larger international network. VietJet has quickly captured a 40% share of Vietnam’s domestic market, and will likely surpass Vietnam Airlines in 2016 as Vietnam’s largest domestic carrier.
International expansion has been modest in VietJet’s initial four years, as the LCC has recognised that there are bigger and less risky opportunities domestically. Nevertheless, VietJet will continue to build up its international operation gradually in 2016, including the Feb-2016 launch of Hanoi-Taipei, which will become its eighth scheduled international route.
Faster international expansion is expected in the medium to long term, possibly using widebody aircraft, as the domestic market will eventually become saturated. A new reservation system that VietJet plans to decide on in 2016 will enable the LCC to start pursuing transit traffic, providing an important new source of international traffic as VietJet steps up marketing activities overseas.
VietJet carried 10 million passengers in 2015, targets 15 million for 2016
VietJet currently operates 28 domestic routes and seven international routes. It has quickly expanded since first operations in Dec-2011, capturing a 40% share of Vietnam’s domestic market only four years after its launch.
About 10 million passengers were carried in 2015, with an average load factor of nearly 90%. Vietnam Airlines carried 17.4 million passengers in 2015, but only slightly more domestic passengers than VietJet.
VietJet passenger traffic was up approximately 70% in 2015, compared with the nearly 6 million passengers carried in 2014. VietJet tells CAPA it projects 50% passenger growth in 2016, to 15 million, as the group adds another 12 aircraft for a total of 42.
VietJet added nine aircraft in 2015
VietJet announced on 18-Dec-2015 that it had reached the 30 aircraft milestone, with the delivery of the eleventh aircraft from its Airbus commitment.
According to the CAPA Fleet Database, VietJet Air currently has 24 A320s and three A321s under its operating certificate, while its Thailand-based joint venture Thai VietJet operates one A320. The 30 aircraft figure includes two wet-leased aircraft that VietJet has been using for some time to provide supplemental capacity in the fast growing domestic market.
VietJet Air added nine aircraft in 2015, including three A321s and six A320s. All nine aircraft were from its commitments with Airbus.
VietJet Air had also added nine aircraft in 2014, including the first two aircraft from the Airbus commitments and seven aircraft direct from leasing companies. (The group added 10 aircraft in total in 2014, as one aircraft was placed at Thai VietJet.)

 

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Kris Kim    0

Kris Kim
Posted

^ How was Jetstar's actions in Vietnam "dirty"? They brought a stake in a struggling carrier, but since VN was brought in, things are looking much better for the airline. QF management underestimated how business is conducted in Vietnam, I believe AK itself has also found out on several occasions too but the market has too much potential to give up on.

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Kris Kim    0

Kris Kim
Posted

Arent jetstar and vietnam airline opposed the setting of vietjet/airasia venture before. And before that airasia/vinashin jv

I'm not too sure regarding Vina Shin JV (would have been the first blue AirAsia too!), even then Jetstar wasn't involved. The VietJet/AirAsia JV resulted in the Vietnamese governments policy of using foreign brands on local airlines. AirAsia wanted it's Vietnamese venture to use its AirAsia brand but the Vietnamese Government wouldn't allow them therefore AirAsia pulled out of the company. Jetstar Pacific also had troubles using the Jetstar brand, though they later sorted it out (kind of), they were flying logo less planes, although they are allowed to wear a full livery now, the Jetstar Logo on the tail was faded on the request of the government.

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Amirul Mazlan    0

Amirul Mazlan
Posted

If that's the case like one said before, the one that really got away. Tony should just accept INITIALLY whatever conditions set by the gov/vinashin/vietjet then slowly convince them to turn red.

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flee    5

flee
Posted

I think he learnt that lesson and is now doing exactly that with Airasia India - now, they are trying to convince the Indian govt. to abolish the 5/20 rule.

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JuliusWong    0

JuliusWong
Posted

To quote fellow forum members at airliners.net

 

"The ASEAN market is about to become a bloodbath and I'm quite excited to see how it will go. For reference here are the order books for the largest LCC's in the region.
Lion Air (Indonesia): Batik Air (Indonesia), Wings Air (Indonesia), Malindo Air (Malaysia), Thai Lion Air (Thailand)
-Currently hold the largest percentage of the Indonesian domestic market
-469 Aircraft on order: 201 737MAX, 43 737NG, 38 A320CEO, 183 A320/1NEO, 10 A330 (Batik Air), 9 ATR72 (Wings Air)
Air Asia (Malaysia): Thailand, Indonesia, India, Japan, Philippines, Air Asia X (Malaysia), Thai Air Asia X, Indonesia Air Asia X
-Currently the largest LCC in Asia
-417 Aircraft on order: 108 A320CEO (for all subsidiaries), 341 A320NEO, 66 A330NEO, 10 A350
Vietjet (Vietnam)
-Largest private Vietnamese carrier
-284 Aircraft on Order: 104 A320/1 CEO, 90 A320NEO, 100 737MAX
Citilink (Indonesia)
-LCC of Garuda
-58 Aircraft on Order: 13 A320CEO, 35 A320NEO, 10 A330CEO
Cebu Pacific (Philippines)
-49 Aircraft on Order: 2 A320CEO, 30 A321NEO, 1 A330CEO, 16 ATR72
Tigerair (Singapore)
-37 A320NEO on Order
Jetstar (SE Asian Carriers): JetStar Pacific (Vietnam), JetStar Asia (Singapore)
-15 A320 CEO on order (JetStar Pacific)
NokAir (Thailand)
-LCC of Thai
-13 Aircraft on Order: 8 737MAX, 5 737NG
Scoot (Singapore)
-9 787 on Order
Golden Myanmar Airlines (Myanmar)
- LCC of Myanmar
- 4 Active aircraft
Malindo Air (Malaysia)
- High-end LCC of Malaysia
- 57 Active aircraft
- JV between Lion Air and Malaysia Defence Department
Cambodia Bayon Airlines (Cambodia)
- Parent Company: Joy Air
- 3 active aircraft
- 9x A320 on order, 16x MA60 on order
Not to mention there are also non-ASEAN LCC close to southeast Asia that will be indirectly competing with the ASEAN carriers:
HK Express (Hong Kong)
- LCC of Hong Kong
- Memeber of HNA
- 13 Active aircraft
- 4 A320neo and 2 A321neo to be delivered this year, with 8 more A320neo to be delivered by 2018; 12 Airbus A320neo to be leased from Arctic Aviation Assets Ltd
- Member of the U-fly alliance, allowing interlink between members.
Lucky Air (China)
- Based in KMG
- Member of HNA
- Planning to start 20 routes to ASEAN countries in the next 3 years
- Member of the U-fly alliance, allowing interlink between members.
- 26 Active aircraft

 

How are all these airlines going to find manpower is a one million dollar question. Not forgetting the infrastructure to support....

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