return icon Vietnamnet.vn

Are Vietjet’s recent troubles the result of scorching-hot development?

From a small airline with only three aircraft in 2011, Vietjet Air has become a big low-cost air carrier (LCC) with annual revenue of VND50 trillion.

VietNamNet Bridge - From a small airline with only three aircraft in 2011, Vietjet Air has become a big low-cost air carrier (LCC) with annual revenue of VND50 trillion.


{keywords}




Vietjet owner Nguyen Thi Phuong Thao’s development of the biggest LCC in Vietnam has been used as an example of emerging market development in classes at Harvard’s business school. 

Vietjet Air has made big leaps in the last seven years. The first images of Vietjet Air, with stewardesses in bikinis, once stirred controversy and raised curiosity in the international press. This gave a push for the first private Vietnamese airline to take off.

Vietjet Air’s revenue began soaring in 2014, reaching VND8.699 trillion, a growth rate of 129 percent compared to 2013. The high growth rate was repeated once again in 2015 with impressive revenue of VND19.845 trillion.

In 2016 and 2017, its revenue growth rates were 38.5 and 53.8 percent, respectively. The big achievements gave Vietjet Air reasons to set a revenue target of VND50.97 trillion in 2018.

There are no official statistics about air carriers’ market share. However, some financial institutions believe that Vietjet outstripped the national flag air carrier Vietnam Airline in market share in 2018. 

There are no official statistics about air carriers’ market share. However, some financial institutions believe that Vietjet outstripped the national flag air carrier Vietnam Airline in market share in 2018. 

According to Bao Viet Securities, Vietjet now holds 42 percent of market share, and the figure is still rising.

Before Vietjet joined the market, only 1 percent of Vietnamese could approach air travel, while air tickets were expensive and reserved only for the well-off. 

To serve the hot development, Vietjet has ordered hundreds of aircraft, both Airbus and Boeing. It has 61 A320s and A321s, both chartered and owned, a high number for a young airline, according to Planespotter. 

The number of airplanes increased from 3 in 2011 to 61 in 2018.

While Vietjet flies in full swing, it has met with troubles recently. The Ministry of Transport (MOT) has given a ‘strong warning’ to Vietjet for multiple incidents that have threatened flight safety. 

In the last three months, Vietjet had seven incidents, including five technical problems.

Zing.vn quoted Nguyen Thanh Trung, a veteran pilot, as saying that the air carrier is ‘obviously meeting problems’. He said Vietjet needs to examine the quality of pilots, technical systems, and monitoring.

However, Nguyen Thien Tong, an aviation expert, believes there is no link between incidents and hot development. 

“An air carrier with no hot development still has similar troubles,” he said. “It is wrong to think that once development cools down, incidents won’t occur.”


RELATED NEWS

Vietjet flight crew suspended following landing nightmare

Vietjet flight encounters landing problem at Buon Ma Thuot airport


Kim Chi

MORE NEWS

Colorful crabs raised as pets by animal lover

Dogs as pets, sure. Cats, absolutely. Birds and rabbits, of course. But crabs? Really? It turns out that one man in Hanoi is so crazy for crabs he has dozens upon dozens of them as pets.

Vietnamese GDP set to rank third in ASEAN by 2027

Vietnam’s gross domestic product (GDP) in ASEAN is expected to expand considerably over the next five years, with its rankings rising from sixth this year to third by 2027, according to the latest forecast made by the IMF.

Attractive sites in HCM City vandalised with graffiti

Multiple sites in HCM City, including bus stops, metro trains and the newly opened Thu Thiem 2 Bridge, have been vandalised with graffiti.

FDI poured into real estate sector doubles

Real estate sector attracted 3.5 billion USD in foreign direct investment (FDI) the first nine months of this year, accounting for mearly 19% of total FDI that the country lured in the period, coming second among sectors in terms of FDI attraction.

Gia Lai province has new Chairman

The Government has confirmed Mr. Truong Hai Long as new Chairman of the Gia Lai provincial People's Committee.

Investors dump shares in panic, VN-Index drops nearly 46 points

The VN-Index officially lost the 1,110-point mark, retreating to the bottom made in February 2021 in the first trading session of October on October 3.

First Vietnam monkeypox case returns from Dubai

The Ministry of Health confirmed on October 3 that a woman returning from Dubai has infected with the monkeypox virus, the first case recorded in Vietnam so far.

Coca-Cola injects US$136 million into Long An plant

Coca-Cola Beverages Vietnam Co., Ltd is poised to start development on a beverage factory with total investment capital exceeding US$136 million in Phu An Thanh Industrial Park of Ben Luc district in the southern province of Long An.

List of 48 websites showing signs of law violation announced

The Ministry of Information and Communications (MIC)’ Authority of Broadcasting and Electronic Information has announced a list of 48 websites showing signs of law violations as of the end of the third quarter.

Secretary of Hai Duong Provincial Party Committee expelled from Party

The Party Central Committee decided to expel Secretary of the Hai Duong Provincial Party Committee and Chairman of the provincial People’s Council Pham Xuan Thang from the Party during the first working day of its sixth plenum in Hanoi on October 3.

VIETNAM NEWS HEADLINES OCTOBER 3

Hanoi seeks UNESCO's recognition for Mo Muong

Seven must-visit destinations in Vietnam for coffee connoisseur

From the 19th century until now, coffee has taken a journey to become an irreplaceable part of Vietnamese culture and life.

Petrol prices fall to over a year record low of VND21,000/litre

Petrol prices tumbled to the lowest level in more than a year in the latest adjustments made on October 3 by the Ministries of Industry and Trade and the Ministry of Finance.

Foreign ODA and concessional loans reach 15.5% of target

Disbursement of foreign official development assistance (ODA) and concessional loans has been slow, achieving only 15.48% of the target, the Ministry of Finance reported.

More foreign visitors to HCMC signals thriving tourist season

Roughly 100 French, American, German tourists traveled to Ho Chi Minh City on French Le Laperouse yacht of Ponant after the last visit in mid-November 2019 signaling a thriving tourist season.
back_to_top