Monday, June 26, 2017

The Rise And Rise Of Vietnam's Vietjet

25 Jun 2017
Vietnams favourite low cost airline has grown in size more than most predicted benefiting not only Vietnamese citizens but the tourism and business sector as well.
>Vietjet pilot and cabin crew in their unique and 'fun' uniforms .
>Vietjet aircraft take off and land at Ho Chi Minh.
>Receiving the IOSA certification of safety excellence in 2015.
>Vietjet’s technical reliability ratio for 2017’s first quarter is also recorded at an impressive 99.59%
>With a fleet of 45 aircraft it is not uncommon to see rows of aircraft in airports around Vietnam and Asia.
When the airline first launched 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 airline has quickly grown its fleet and subsequently its number of destinations opening up affordable travel to all including those that perhaps couldn't afford air travel before.
The airline to date has flown 40 million passengers, and been awarded 32 domestic and nine international accolades such as being named one of the Top 500 Brands in Asia 2016 and “The Best Asian Low Cost Carrier 2015” at the TTG Travel Awards 2015.
Today Vietjet has five main bases: Ho Chi Minh City, Hanoi, Da Nang, Nha Trang, and Hai Phong, the airline operates a fleet of 45 aircraft, including A320s and A321s, and operates over 300 flights per day. It currently operates 63 routes (37 domestic and 26 international) in Vietnam and across the region to international destinations such as Hong Kong, Thailand, Singapore, South Korea, Taiwan, Malaysia, Cambodia, China and Myanmar.
Vietjet Key Milestones
2007:
- Obtained its Air Operator’s Certificate (AOC)
2011:
- On December 25 the first commercial flight flew from Ho Chi Minh City to Hanoi
2013:
- Flew its first international flight between Ho Chi Minh City and Bangkok, Thailand-
- By the end of the year the airline had gained 20% of the domestic market share
2014:
- By the end of 2014, with a fleet of 19 aircraft, Vietjet had secured 29.6% of domestic market share
2015:
- Obtained the IATA Operational Safety Audit certificate (IOSA) from International Air         Transport Association (IATA)
 - Inaugurated the Vietjet Training Center (VTC)
 - Flew its 10 millionth passenger
 - By the end of the year had gained 37.1% domestic market share with a fleet of 30 A320 aircraft
2016:
- Received a Certificate of Merit from the Prime Minister of Vietnam for achievements in production and business, actively contributing to the economic and social development of the city, contributing to the cause of national construction and defence
- Vietjet officially became a full member of IATA
- Held a ceremony to celebrate flying its nineteen-millionth passenger
- 44.7 million shares were offered to 24 international institutional investors. Vietjet is the first Vietnamese company to have completed an IPO that meets international standards and practices
Aviation in Vietnam
Vietnam has the fastest economic growth rate and urbanization rate within the ASEAN region. From 2000 to 2015, Vietnam’s GDP per capita grew at a rate of 5.3%, which was one of the highest in the region. Vietnam is expected to maintain a strong GDP growth rate of over 6% over the period of 2016-2021. Considering its large and young population of 91 million people plus a booming tourism sector (11% growth year on year) air travel penetration in Vietnam is very low. With vast distances and large areas lacking in effective road and rail connectivity, air travel service is an area that still has much room to grow. The Vietnamese government has reported its plan to invest US$10.5bn to develop airport infrastructure across the country meaning nothing but growth opportunities for Vietjet.

Safety
There is a perception, particularly in western countries that low cost Asian carriers compromise on safety but Vietjet scores a very respectable 6/7 on AirlineRatings.com’s safety rating system, the equal highest rating in Vietnam. In 2015 Vietjet received its IATA Operational Safety Audit (IOSA) certificate from the International Air Transportation Association (IATA) for its outstanding operational standards.  IOSA certification is a confirmation of the commitment of an airline to deliver safe operations based on the principles stated in the IOSA Standards Manual. Vietjet’s technical reliability ratio for 2017’s first quarter is also recorded at 99.59%, an increase of 0.02% against 2016’s, a highly impressive rate.
The airline today operates a fleet of 45 A320 and A321 aircraft with an average age of only 3.28 years.
Making moves in Training
In October 2015, the Vietjet Training Centre (VTC) was approved as an Approved Training Organization (ATO) to provide professional training for Pilots, Cabin crew, Technical staff, Ground Operation Staff and Dispatchers. In 2016, Vietjet and Airbus inked an agreement to provide flight and maintenance training services in Ho Chi Minh City. With this agreement, VTC will conduct training for pilots, engineers, technicians, dispatchers and instructors complying with Airbus and EASA’s standards from the first quarter of 2018
Financial Status
Vietjet Aviation Joint Stock Company is a fully-listed entity on the Ho Chi Minh City Stock Exchange (HOSE: VJC). The airline is the first Vietnamese company to have completed an IPO that meets international standards and practices (Reg S). BNP Paribas, Deutsche Bank, JP Morgan are the IPO's foreign joint global consultants. Twenty-four international investors subscribed to Vietjet's offering, including Singapore sovereign fund GIC, Wellington, Morgan Stanley, Dragon Capital, VinaCapital, and many more.
Vietjet’s revenue in 2016 was VND27,532 billion (USD1.21 billion) with a net profit of VND2,394 billion,  (USD105 million) with an earnings per share of  VND8,762.
Core Values
One of the things you can’t help but love about Vietjet is their core values
To be ‘SAFE, FUN, AFFORDABLE and PUNCTUAL’
And really, what else could you want.
KUALA LUMPUR: Three memorandums of understanding (MOUs) and one letter of intent (LOI) were signed during the International Paris Air Show 2017, said the Ministry of International Trade and Industry (Miti).
In a statement today, Miti said, the week-long air show, which ends today, brought together aerospace players from the world over to network, exhibit and converge new product ideas, knowledge transfer and training capabilities, among others.
The major highlights included Malaysia Airport Holdings Bhd's (MAHB) signing agreements with two companies – Gyeongnam Techno Park from South Korea on manufacturing (aero structures, components, tools & jigs) and maintenance, repair & overhaul (MRO) for aero-engine and components; and, Denmark-based Skyways Technics on the expansion plan within the MAHB's aerospace ecosystem, it said.
Miti said another notable event was the signing of an MOU between the Malaysia Aerospace Industry Association (Maia) with the Taiwan Aerospace Industry Association (Taia) on aerospace development, particularly in the areas of human capital development, aerospace capabilities and business opportunities between Malaysia and Taiwan.
"This collaboration is timely as various original equipment manufacturers' strategies pivot towards the high-growth regions such as Asia-Pacific which aims to capture 40% of new commercial aircraft fleet growth," it said.
It said the LOI, signed by Aerospace Malaysia Innovation Centre, and the French Government's Ministry of National Education will look into developing new innovative methods of training for aerospace engineers and blue-collar workers in Malaysia.
Taiwan's aerospace industry development has been recording a healthy 15% growth per year since 1992, prompting MAIA to form this collaboration as part of its effort in positioning Malaysia as a capable and competitive manufacturing, MRO and services base that is able to supplement and integrate with the Taiwanese and regional aerospace sectors, it said.
Miti said the Malaysian Government will continue to promote the aerospace ecosystem to accelerate local supply chain development as well as to bring in cutting-edge technology to the country.
"This is in line with Malaysia's Industry 4.0 initiative to enhance Malaysia's competitiveness at the global arena. The export promotion of aerospace services will remain an important activity to promote Malaysia as the regional aerospace hub in South-East Asia," it said.
Meanwhile, Miti said, the Malaysian small medium enterprises (SMEs) recorded an achievement of US$17.2 million (RM73.7 million) of potential sales from their participation at the International Paris Air Show 2017.
The 10 SMEs are from the Entry Point Project 8 (EPP8): Developing SMEs in the Global Aerospace Manufacturing Industry Programme under SME Corporation Malaysia. — Bernama

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