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VIETJET AVIATION JOINT STOCK COMPANY

VIETJET AVIATION JOINT STOCK COMPANY


Project Description

OVERVIEW

Vietjet Aviation Joint Stock Company (Vietjet Air) is Vietnam’s first private airline established in 2007 with three main shareholders: T&C Group, Sovico Holdings and HD Bank. The Company has its core business in air transport services. Vietjet Air has become the airline firm with the largest domestic marketshare at 43% in Vietnam at the end of 2017. Vietjet Air is operating 51 aeroplanes, including 24 A320 aircrafts and 27 A321 aircrafts with 38 domestic flight routes and 44 international routes. Vietjet Air has been listed and traded on Hochiminh Stock Exchange (HOSE) since February 2017.

MAIN BUSINESS

  • Air transportation, air-cargo transportation;
  • Ground services including passenger service, tourism, food, souvenirs;
  • Aircraft technical support, periodic maintenance, non-periodic maintenance, spare parts, fuel-filling, sales and marketing services;
  • Training pilots, technicians and manpower in other fields;

MARKET POSITION

  • In 2017, Vietjet Air has executed 98,805 flights, transported over 16.3 million passengers and maintained an average seat usage rate at 88.05%. Vietjet Air has become the airline firm with the largest domestic marketshare at 43% in Vietnam at the end of 2017.
  • Vietjet Air is operating 51 aeroplanes, including 24 A320 aircrafts and 27 A321 aircrafts with 38 domestic flight routes and 44 international routes.

GROWTH STRATEGY

  • Maintaining the leading position in the marketshare of domestic airline transport in Vietnam;
  • Developing aeroplanes team to aim at the ownership of over 200 aeroplanes until 2023;
  • Increasing the number of international domestic and international flight routes;
  • Expanding international and domestic low-cost marketshare;
  • Promoting the growth of revenue from other services such as food, souvenirs and other commodities;

PROSPECTIVES

  • With strategically geographic advantages in the region and potentials in tourism, the International Air Transport Association (IATA) considers Vietnam as one of the most growing market in near future;
  • Vietjet Air plans to own 200 aeroplanes in 2023. Vietjet Air has set its objective to transport 15 million passengers to become the favorite Airline in Vietnam and the Region;

RISK

  • The integration and open policies of Vietnam economy creates favorable conditions for private and joint venture carriers to develop in Vietnam market. Furthermore, the attractions of Asia Aviation market and Asean open sky policy appeal Asian Carriers and others such as the Middle East to take part in Vietnam market, which leads to rising competitiveness;