|Passengers check in at a Vietjet counter. — Photo courtesy of Vietjet|
HÀ NỘI — A fast-growing international network has become the highlight of Vietjet as the multinational airline constantly reaches new global destinations. The expansion has fueled a boom in trade, tourism and cultural exchange everywhere it flies.
Vietjet’s success in the international market has earned the airline the reputation of an “air ambassador”, always striving to lead and connect Việt Nam and other Southeast Asian countries to nearly 100 destinations worldwide.
Air transport leader
Vietjet has reported a remarkable increase in international passengers, at 3.5 million, in the first half of 2023, accounting for more than 50 per cent of the total 6.9 million international passengers to and from Việt Nam this year. It has become a bridge for global trade, investment, tourism, and cultural exchange.
In the second quarter of 2023, the airline opened 11 new international routes to Australia, Indonesia, and India, expanding its flight network to 120 routes (of which 75 are international and 45 domestic).
This has made air travel the most convenient, cost-effective means of transport for individuals and businesses between Việt Nam and the Southeast Asian region and major international markets such as Australia, India, Kazakhstan, Northeast Asia, and beyond.
Vietjet has aggressively expanded its network to India which is home to over 1.4 billion people, operating seven routes connecting Hà Nội and HCM City with the four major Indian cities of Mumbai, New Delhi, Ahmedabad, and Kochi.
Vietjet’s entry into the market has increased the total number of passengers travelling between Việt Nam and India in the first six months of 2023 to over 300,000, nearly five times higher than the 70,000 passengers recorded in the same period last year.
Vietjet since mid-April has also opened three direct routes in a row from HCM City Việt Nam’s economic, cultural, and tourism metropolis – to Sydney, Melbourne, and Brisbane.
|Vietjet has safely operated 65,900 flights, transporting over 12.1 million passengers – a year-on-year increase of 30 per cent. — Photo courtesy of Vietjet|
According to the airline’s data, the number of international passengers on the Việt Nam-Australia route averaged 500,000 last year.
Since Vietjet launched its new routes in April, however, the number of weekly passengers has doubled, giving way to the projection of over one million passengers by the end of the year. Meanwhile, the fourth route to Australia, connecting HCM City with Perth, is set ready to launch this November.
In the Northeast Asian market, Vietjet has been for years operating the largest network between Việt Nam and South Korea (14 routes), Taiwan (eight routes), and Japan (seven routes), and has expanded to over 50 destinations in mainland China. This further solidifies Vietjet’s position as a multinational airline and an air ambassador in the global aviation industry.
Vietjet’s international routes, with reasonable fares and high-quality services, have contributed to connecting cultures, bridging the geographical distance between Việt Nam and Asian-Pacific countries and bringing people in the region closer.
They have also promoted tourism and strengthened bilateral investment and trade, further facilitating the economic recovery and development of the countries.
Embracing the strategy of back-to-back innovation and constantly introducing premium products and services, Vietjet in the first half of 2023 has launched its business class option with countless privileges for passengers, and the SkyJoy loyalty program which has attracted over eight million members.
The airline has also put into operation the modern and environmental-friendly A330 aircraft fleet for flights to Australia, India, Kazakhstan, Japan, and South Korea.
Vietjet has actively contributed to the community by providing free flights and maintaining cheap tickets for the people and tourists in the region, living up to the airline’s philosophy that everyone can fly in a world where economies and cultures are brought closer than ever.
In the first six months of 2023, Vietjet’s consolidated revenue was VNĐ29.77 trillion (about US$1.25 billion), soaring by 87 per cent year-on-year and representing 120 per cent of the H1 target.
Ancillary revenue maintained a high growth rate, reaching VNĐ9 trillion ($378.68 million) – a two-fold increase year-on-year and accounting for 40 per cent of the total revenue. Consolidated after-tax profit was recorded at VNĐ387 billion ($16.3 million).
Vietjet has safely operated 65,900 flights, transporting over 12.1 million passengers – a year-on-year increase of 30 per cent. The airline has been the market leader in terms of passenger numbers, both on domestic and international routes.
|Planes in the Vietjet fleet. — Photo courtesy of Vietjet|
The average seat utilisation rate was over 85 per cent while the technical reliability rate stood at 99.63 per cent. Vietjet’s fleet consists of 103 aircraft, including 7 wide-body planes. Vietjet also operates a new fleet of aircraft and had large orders with Airbus and Boeing, gaining advantages in operational efficiency and financial performance.
Vietjet has been focusing on sustainable aviation development to fly passengers on green flights that are fuel-efficient while reducing CO2 emissions. This is hoped to inspire more actions towards a green future, mitigating the impact of natural disasters and pandemics while bringing better values to the world.
The airline has used eco-friendly materials such as meal trays made from local bamboo and areca palm leaves. Vietjet has also accelerated the application of technology and digital transformation, moving towards paperless operations and streamlining processes to improve efficiency and minimise unintended environmental impacts.
As of June 30, 2023, Vietjet’s total assets reached over VNĐ71.5 trillion ($3.01 billion) while the debt/equity ratio and the liquidity ratio was 1.2 and 1.5 respectively, which were all within good range of the aviation industry.
Vietjet has received a BB+ credit rating with a Stable outlook (VnBB+) from Saigon Ratings. It highly regarded Vietjet’s financial capabilities with solid capital structure, low debt ratio, and resourceful liquidity. Additionally, commercial advantage and diversified business platform helped Vietjet maintain its shareholder capital after the COVID-19 pandemic.
Being the largest passenger transporter of all airlines in Việt Nam, particularly on international routes, Vietjet, based on its positive business performance in the first half of the year, is expected to achieve and even exceed its 2023 plan, continuing to contribute to the recovery and growth of tourism, investment, and the economy in general.