VietJet Air

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VietJetAir
VietJet Air logo.png
IATA
VJ
ICAO
VJC
Callsign
VIETJET
Founded 2007
Commenced operations 25 December 2011
Hubs
Subsidiaries Thai Vietjet Air
Fleet size 15
Destinations 15
Company slogan Bay là thích ngay! - Enjoy flying
Parent company Sovico Holdings
Headquarters Ho Chi Minh City (SGN), Vietnam
Key people Lưu Đức Khánh (CEO)
Website www.vietjetair.com

VietJet Aviation Joint Stock Company (Vietnamese: Công ty Cổ phần Hàng không VietJet), trading as VietJet Air, is a low-cost airline[1] in Vietnam. It was the first privately owned airline to be established in Vietnam, being granted its initial approval to operate by the Vietnamese Minister of Finance in November 2007.[2] 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.

The carrier's launch was beset by long delays attributed to various causes, such as a global economic slowdown and regulatory issues. Although 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2010 that it planned to purchase a 30% stake in the airline through a joint venture agreement, the carrier later rescinded its plans, citing "a failure to obtain Vietnamese regulatory approvals".[3][4] Despite the setbacks, VietJet Air's first flight was operated on 25 December 2011, flying from Ho Chi Minh City to Hanoi.[5][6] As of 27 February 2012, the carrier has operated 360 flights and carried over 40,000 passengers.[7]

VietJet Air is owned by Sovico Holdings.[8]

Overview[edit]

VietJet airplane in Bournemouth

The airline has its head office on the eighth floor of CT plaza in Tan Binh District, Ho Chi Minh City, with a branch in Hanoi on the HD bank Building,[9] It was the first privately owned airline to be established in Vietnam,[2] 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[nb 1] to offer civil domestic flights, after Vietnam Airlines, Jetstar Pacific Airlines, Air Mekong and the Vietnam Air Service Company (VASCO).[1] 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 countries, such as Singapore, China, Thailand, Korea, and Japan.[10] The airline appointed Brian Presbury as its Chief Executive Officer in May 2008.[11]

Launch delays[edit]

Initially, VietJet had shown the intention to commence flights in late 2008 or early 2009.[10] Throughout the next few years, the expected launch date was repeatedly pushed back, first to late 2009, then mid-2010.[12] Airline officials gave different reasons for the delays, including increased fuel prices and other financial problems. Later news reports from the state-controlled Vietnam News Agency echoed these initial reports, stating that "the airline's four-year delay in takeoff was due to the global economic crisis", referring to the late-2000s global financial crisis.[6]

In February 2010, Southeast Asian low-cost carrier AirAsia announced that it had purchased a 30% stake in the airline.[13] By mid-2010, a date of October 2010 was being given for the maiden flight, with officials stating the additional delay was due to unresolved branding conflicts with the Civil Aviation Administration of Vietnam (CAAV).[14]

By February 2011, VietJet was said to be "completing final stages" prior to launch before its operation license expired in June.[15] In March, AirAsia reportedly indicated it might withdraw funding from VietJet if the airline was unable resolve its branding issues before the June deadline.[16] Indeed, in October 2011, AirAsia announced it was calling off its plans to form a joint venture with VietJet, citing "a failure to obtain Vietnamese regulatory approvals", including the permission to use the AirAsia brand in the airline's commercial operations.[3] Despite the collapse of the AirAsia joint venture, VietJet announced in November that its launch plans would proceed. The airline's maiden flight was eventually launched on 25 December 2011, flying from Ho Chi Minh City to Hanoi.[6]

On 9 February 2013, the airline launch its first international flight between Ho Chi Minh City and Bangkok becoming the first Vietnamese private airline to enter the international market.

In-flight bikini show[edit]

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.[17]

Refleeting[edit]

On 11 February 2014, at the opening of Singapore Air Show, the airline firmed up orders with Airbus for 63 A320 at list price of $6.4 billion.[18] Previously, the airline signed a Memorandum of Understanding with Airbus for 92 planes in the A320 family.[19]

Destinations[edit]

In the initial stages of its operation, VietJet intends to offer services to the following destinations:[1]

Domestic

International

 Thailand
 Republic of Korea
 Singapore

Fleet[edit]

As of June 2014, the VietJet fleet includes the following aircraft:

VietJet Air fleet
Aircraft Total Order Passengers Notes
Airbus A320-200 15 39 180 Leased from ALAFCO, GECAS, Ansett Worldwide Aviation Services (AWAS), CIT
Airbus A320neo 0 42[20] TBA
Airbus A320ceo 0 14[20]
Airbus A321ceo 0 7[20]
Total 15 103

Notes and references[edit]

Notes[edit]

  1. ^ Not counting Indochina Airlines, which ceased operations in November 2009.

References[edit]

  1. ^ a b c "Hàng không giá rẻ VietJet Air bay dịp tết". Tuổi Trẻ Online. 2011-11-30. 
  2. ^ a b "Vietnamese government approves country's first privately owned airline". Forbes. 30 November 2007. 
  3. ^ a b "AirAsia calls off Vietnam joint venture". Agence France-Presse. 2011-10-12. 
  4. ^ http://www.mb.com.ph/articles/252058/vietjet-air-airasia-launch-lowcost-airline
  5. ^ "Kinh tế 24h VietJet Air chính thức cất cánh từ 25/12". Vietnam Economic Forum. 2011-11-29. 
  6. ^ a b c "VietJet Air to take off next month". Vietnam News Service. 2011-11-30. Retrieved 2011-11-30. 
  7. ^ "VietJet Air mở đường bay mới". Tuổi Trẻ Online. Retrieved 28 February 2012. 
  8. ^ "Air Mekong thuộc về ai?". Gafin.vn. 5 January 2013. Retrieved 6 January 2013. 
  9. ^ "Home." "Head Office A 4th Floor, Flower Mansion, 14 Thuy Khue Street, Tay Ho District, Hanoi, Vietnam" and "HCM Office A 9th Floor, Hai Au Building, 39B Truong Son Street, Tan Binh District, Ho Chi Minh City, Vietnam" Addresses in Vietnamese: "Trụ sở chính A Tầng 4, Tòa nhà Flower Mansion, 14 Thụy Khuê, Tây Hồ, Hà Nội, Việt Nam" and "Văn phòng tại TP.HCM A Tầng 9, Tòa nhà Hải Âu, 39B Trường Sơn, Quận Tân Bình, HCM, Việt Nam"
  10. ^ a b "VietJet website: FAQ". Archived from the original on 2007-11-07. 
  11. ^ "Foreign boss leads Vietnam’s first private airline". 
  12. ^ VIETJET AIR to launch the first flight in Quarter IV. March 10, 2009. VietJet Air.
  13. ^ Leithen Francis (2010-02-11). "AirAsia buying 30% of VietJet". Flightglobal. Air Transport Intelligence news. Retrieved 2010-05-28. 
  14. ^ VietJet Air seeks to delay launch for 5th time. June 16, 2010. Tuoi Tre.
  15. ^ Vietjet Air prepare to launch the first flight
  16. ^ AirAsia muốn rút vốn khỏi Vietjet. VNExpress.net. March 31, 2011. (Vietnamese)
  17. ^ "Vietnam Airline Fined for In-Flight Bikini Show". August 9, 2012. 
  18. ^ http://www.mb.com.ph/vietjetair-orders-63-airbus-a320s-for-major-fleet-expansion/
  19. ^ http://www.mb.com.ph/vietjetair-acquiring-up-to-100-new-a320s/
  20. ^ a b c http://www.airbus.com/newsevents/news-events-single/detail/vietjetair-finalises-major-a320-family-order/

External links[edit]