VietNamNet Bridge - Offering a cheap airfare policy and well-crafted branding, VietJet is growing rapidly, becoming a popular choice as a regional and domestic carrier.

VietJet marked a milestone on its development when the carrier welcomed its ten millionth passenger on January 31 last year. This landmark figure was even more impressive given the fact it took the trailblazing newcomer only three years after it first took flight in December 2011.

“Three years ago, VietJet’s success was just a dream, but today, VietJet is a symbol of Vietnam’s outstanding innovation,” said Minister of Transport  Dinh La Thang, at the landmark ceremony held by the carrier at Vinh International Airport.

“I’m glad to see VietJet’s investment  has seen great development, while ensuring better security and aviation safety, and maintaining passenger service quality,” Thang added.

Friendly carrier

The minister’s comments underlined the efforts made by Vietnam’s first private air carrier. VietJet now operates 21 aircrafts and runs 150 flights daily on 28 domestic and international air routes.

“VietJet has been investing and developing a sustainable development plan. Our expectation is that everybody can fly,” said Nguyen Thanh Ha, chairman of VietJet.

As part of its efforts to open up air travel as widely as possible, the carrier regularly organises cheap or even free flights. Vietjet last month offered major discounts on its new Hanoi - Quy Nhon and Ho Chi Minh City - Dong Hoi flights.

The airline gave away thousands of free air tickets from midday to 2pm every day over the course of a week. For this promotion, lucky passengers could book flights on the Hanoi - Quy Nhon route and Ho Chi Minh City - Dong Hoi route during  a period between April and October.

However, VietJet Air is not just about low-cost options; it also has an innovative approach to company branding that helps portray VietJetAir as a dynamic and young airline through an exciting collaboration with Disney.

Besides cartoon characters on the side of its plane, the carrier is also well-known  for its creative entertainment in-flight programmes. VietJet Air holds an award  for its Cultural Creative and Entertainment in-flight Programmes from the Asian Record Organisation. Spend & Use Advisory Magazine also declared VietJet as “the most friendly transportation and best promoted Airline in Vietnam.”

Passengers on the Ho Chi Minh City-Bangkok flight on Valentine’s Day were also surprised when they were unexpectedly made to participate in the wedding party of Tang Ai Linh and her partner, Pham Thi Thanh Phuong.

Linh and Phuong went to meet representatives of VietJet asking to hold their wedding party on one of its flights and they were so happy to receive more than a positive response. The airline sponsored all the wedding costs and also gifted them a honeymoon trip to Thailand, the region’s most gay-friendly country.

Ambitious expansion plan     

 VietJet has achieved remarkable progress in the past three years underlining its dynamic position in Vietnam’s emerging and competitive aviation market. However, VietJet also aspires to be one of the largest low-cost carriers in Southeast Asia and it has already implemented its plan by expanding business to Thailand, Taiwan, South Korea and Singapore.

The carrier is planning to follow national flag carrier Vietnam Airlines with an initial public offering (IPO) that will allow it to enhance its competitiveness and further expand its international network.

Luu Duc Khanh, managing director of VietJetAir, late last year announced the plans for the imminent IPO in Toulouse, France, when the carrier received the first Airbus A320 aircraft from its order for 100 planes.

“The IPO is a major step in our development strategy and also part of our plans to form an international aviation alliance,” said Khanh.

If things go according to plan, VietJet will be the second Vietnamese airline to have carried out an IPO, following Vietnam Airlines last year which sold a modest 3.48 per cent stake.

“The equitisation of Vietnam Airlines was certainly a positive sign of a healthy, open and transparent aviation market and also a progressive step against monopolisation. Once an environment to attract investment is founded and the market is operational, investors and customers will be the ultimate beneficiaries,” Khanh said, conveying his optimism about the future success of VietJet’s IPO.

Although VietJet following in Vietnam Airlines’ footsteps, Khanh said the low-cost carrier’s business strategy was different.

“Each business has its own strategy and strengths which attract a unique set of investors, and Vietjet has its own. Being the first private airline in Vietnam, we are able to enjoy new opportunities for market share and growth, and the latest benefits for new airlines,” he said.

A part of the strategy is international expansion, which actually has already been implemented during the last two years.  

“VietJet has fully covered Vietnam by offering 110 flights a day and now the airline is actively expanding its network across the Asia-Pacific region. We have successfully established routes from Vietnam to Thailand, Singapore, South Korea, and Taiwan while preparing to open routes to Cambodia, China, Russia and Japan,” said Khanh.

As a part of its ambitious expansion, VietJet also wants to be involved into aviation infrastructure to contribute to the industry development. The Ministry of Transport has recently accepted in-principle to allow this carrier to operate Terminal T1 at Hanoi’s Noi Bai International Airport. This is the first time the Ministry of Transport has in principle accepted a private company to operate an airport terminal in Vietnam.