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VJE-2013-03 - UPDATE-A
VJE-2013-03 - UPDATE-B
VJE-2013-03 - UPDATE-C
VJE-2013-03 - UPDATE-D
VJE-2013-12 - EXPANSION
VJE-2014-07 - TO SEOUL
VJE-2014-12 - TO TAIPEI TAOYUAN-A
VJE-2014-12 - TO TAIPEI TAOYUAN-B
VJE-2014-12 - TO THANH HOA
VJE-CABIN ATTENDANTS - 2013-03
VJE-MD-83 - 2015-06.jpg
VJE-ROUTE MAP - 2013-03
VJE-VISIT DA NANG CITY
VJE-VISIT DA NANG MO STREAM
VJE-VISIT HANOI CITY
VJE-VISIT HO CHI MINH CITY
VJE-VISIT NHA TRANG
Formed and started operations in 2011. Domestic, regional, & international, scheduled & charter, passenger & cargo jet airplane services.
125 Truc Bach, Truc Bach Ward
VIETNAM (THE SOCIALISTIC REPUBLIC OF VIETNAM) WAS ESTABLISHED IN 1945, IT COVERS AN AREA OF 331,689 SQ KM, ITS POPULATION IS 75 MILLION, ITS CAPITAL CITY IS HANOI, AND ITS OFFICIAL LANGUAGE IS VIETNAMESE.
Destinations: Visit Da Nang City: Visitors can imagine that it is a beautiful city on the Han River and on the East Sea coast with unparalleled charm in other cities by the sea. Da Nang, which is blessed by nature, is located between 3 world cultural heritages: the Imperial City of Hue, the Old Town of Hoi An, and the My Son Holy Land. This key position has highlighted the role of Da Nang City in the region: reception, service, customer transition. Da Nang is not only the heart of three world heritages but also has many wonderful landscapes that tourists can hardly forget after visiting this city.
In Da Nang, Hai Van Pass, which is steep and dangerous, was dubbed “the first galaxy of imposing scene”. Son Tra Peninsula is an ideal place for tourists. Rock Stream, Bai But, Bai Rang, Bai Bac, Bai Nom, which are under the foot of Son Tra, make guests feel interesting when immersed in the splendor of sunrise and the silence of sunset of charming mountain and water. Many people compare Ba Na – Mo Stream Eco-resort as Da Lat, Sa Pa of the Central of Viet Nam. Marble Moutains (Ngu Hanh Son) is the legendary with the name “Nam Thien landscape”.
When talking about Da Nang, we cannot forget poetic Han River and the Han River bridge (the 1st rotation bridge in Viet Nam) the pride of the citizens. Han River Bridge, which is a symbol of new life, an aspiration of the citizens, was built by contributions from all local people. It seems that all poetic beauty of Han River is only revealed most perfectly in the windy and cool space of the Han River bridge. The Han River Bridge is not only more convenient for transportation, tourism and stimulated economic potential of a large area in the east of the city but also is a cultural imprint of Da Nang today for eternal generations into the future.
Besides its clean and beautiful beaches, Da Nang port is one of “the hit” ports in Viet Nam. Da Nang, the city on the Han River, is a poetic coastal city and has the hospitality of its citizens, that has made this place became a frequent destination of domestic and foreign tourists.
A nearby attraction to visit is the Mo Stream which is located in An Son Hamlet, Hoa Ninh Commune, Hoa Vang District, Da Nang City. The way to Mo Stream is from Da Nang along the National Highway 1A to the north, toward Hoa Khanh, Lien Chieu District, where 1 has to turn left.
In summer, this place attracts a large of number of tourists coming here to bathe and enjoy cool and fresh air. Here is Toc Tien, a 9-storey waterfall. This waterfall is called Toc Tien because it looks like a fairy’s hair if visitors looked up from the foot of waterfall.
Harmonization between vast mountains and white, cool cascades of landscape helps us forget the fatigues of daily life to enjoy the magical moments of relaxation.
* Bo Bo Hill
Bo Bo is a cluster of 4 contiguous small hills. In the last war, Bo Bo was an important strategic position. In 1939, France chose Bo Bo to make a defense base of Da Nang. Many battles between the French army and Quang Nam people took place in Bo Bo Hill. On July 19, 1954 of Quang Nam people fought the last major battle before signing the Geneva Agreement (July 20, 1954) to ended the Indochinese war.
Bo Bo Hill is located in 2 communes of Dien Tho and Tien Dien, Dien Ban District. It is far away (15 km) from Da Nang on the SW. Map: Go along the 2/9 road (National Highway 1A) over the Red Bridge, and go >200 m, then turn right to go to Dien Tien commune and go straight, you'll see monuments of the Bo Bo battle on the right side. Bo Bo Hill has romantic landscapes with green pine forests, smooth lakes and cool, fresh air year by year. Looking from the hilltop to the south, the landscape of villages, countryside, rivers appears as a vivid and charming picture. Nowadays, Bo Bo has been developed and construction carried out to encourage eco-tourism with many categories: motels, campgrounds, restaurants, entertainment services, and zoos.
* Luong Stream
The Luong Stream is located in Hoa Hiep Ward, Lien Chieu District, Da Nang. It is far away (1 km) from Nam tunnel of Hai Van Pass to the south and 15 km from city center to the north. The Luong Stream is nestled at the foot of Hai Van Pass, surrounded by harmonious and green space of immense mountains with singing birds and crying gibbons. All of them create a pristine, rustic and quiet scene. Therefore, Luong Stream also was known as the name "Green Hai Van". When visiting the Luong Stream, tourists immerse in cool and clear water between a green space, listen to murmurous flowing streams, fluttering mountain sound. They give us a peaceful and serene sense.
Currently, Luong Stream converges the full culture of all three domains to become an ideal resort, a pure Vietnamese cultural space. Restaurants are designed in Cham architecture with basic and unique pattern lines; strange things of the Cham, house styles of the ethnic minorities, such as the floor of the Muong, Tay, K 'tu, Dao, Nung. They will make a pleasant surprise for visitors. The heart of the resort is the Luong Stream with clean water and turtles, elephants which are carved from rocks on streams by artisans of Non Nuoc stone village (Da Nang). They look very beautiful. A large and majestic water treadmill, a small hesitant suspension bridge connecting two banks of Luong River are focal points which make this place more and more lively. Besides, small motels along streams, villas on the hill, bars, coffee shops, etc, bring to visitors fresh feeling and satisfaction. The night is also a nice time, when guests hold hands happily together and sing around a flickering campfire or just watch the moon at Vong Nguyet motel, lift cups of Hong Dao wine, listen to love song melodiously. Humans have built Luong Stream as a pure Vietnamese cultural space, an open and quiet space, an attractive destination for near and far visitors.
* Han River
The Han River, or Han Giang, is a name of a part of the river flowing in Da Nang city, from the confluence of Cam Le, Hai Chau and Ngu Hanh Son District to Da Nang Bay, on the border of Hai Chau and Son Tra District. The Han River flows quietly day by day. If we look from a distance, it looks like a blue ribbon crossing the city. The softness of it has created a strange charm to Da Nang. The part connecting two banks of Hai Chau and Son Tra is the most beautiful part of Han River. Currently, there are six bridges across Han River and each bridge has its own beauty. The Han River Bridge is the only rotation bridge in Viet Nam. If you have an opportunity to travel to Da Nang, you should not forget to visit it (the pride of people here). Since the bridge has been present, the Han River becomes more graceful, more charming and more special. All of them make an own mark for Da Nang city.
* Cu De River
2 main tributaries of the Cu De River is North River and South River deriving from Truong Son mountains. Cu De River was created by combination of 2 main tributaries at Hoa Bac Commune, Hoa Vang District. The Cu De River flows from west to east, through Hoa Vang District and Lien Chieu District, then flows into the East Sea. The
full length of the river from Hoa Bac Commune to the sea is 38 km. >30 km is in the territory of Hoa An. The Cu De River has also received a number of small tributaries on the right bank in the territory of Lien Chieu District. The Cu De River (also known as the Truong Dinh River) is a river in northern of Da Nang city. The upstream area is in Hoa Bac Commune, Hoa Vang District, and the downstream 1 is in Nam O estuary, Hoa Hiep Bac Ward, Lien Chieu District. You can use a bike or car (maximum of 16 seats) to go along the route from Da Nang to Hoa Bac Commune to see Cu De River from above 7 - 10 m height. You can also use a boat to go from downstream area in Hoa Hiep Bac Ward to upstream one of the river for visiting. Sap Bridge is the "confluence" of South River and North River forming Cu De River. Bot Pool in confluence looks like a miniature Ha Long Bay. If you choose North River to start a journey, nature will open up wild scenes with many strange names: Gieng Hole, Up Lo Coi, Down Lo Coi, Xep Fall, Na Mun, Bo Stone, Khe Mun, Root Fall, Trang Trao Trang Trot, Khe Giao, Vung Tau, Hai Yard, Up Ta Lang, Mit Garden, Con Do Bay. Each name always associated with other beauties. Therefore, they have their own history. However, when they "connect" on overall length of over 20 km of river and hundreds of hectares of primary forests, they are invaluable.
Currently, Hoa Bac Eco-tourism is 1 of interesting places on the journey to visit Cu De River. After passing from Nam O by river way or from Da Nang by road way, the 1st place of visitors is the scene of Ruong traditional buildings in Pho Nam Rural, near the office of People's Committee of Hoa Bac Commune. The 2nd one is Khe Tri (Nam My Rural) with an area of >4.000 m2, with swimming pool, fish pond, motel and other services. The 3rd one is a Guol traditional house of Co Tu people in Ta Lang village.
* Marble Mountains
The main area of interest is the way from Han River Bridge (Ngo Quyen Road on the side of SE), Marble Mountains Road, Le Van Hien Road to Huyen Tran Cong Chua Road; then, go about 1.5 km from the beginning of Huyen Tran Cong Chua Road. Marble Mountain is located on white sand area from Non Nuoc Sea extending to Tien Sa Peninsula. According to geology, it is said that Marble Mountains were previously islands near the coast due to tidal effect and covering alluvia. These islands connect with the mainland. Mountains were affected by the erosion action of rain water and a climate that created caves and bizarre shapes, and made mountains have particular nuances. Mountains at Marble Mountains are not high. They are limestone mountains transferring into marble (from 360 to 410 million years ago). Other herbs such as: Thien Tue trees have luxuriant foliage wrapping itself round mountains; Thach Truong Sanh trees grow on wet rocks. Cung Nhan Thao (Amaryllis) White Jasmine, Canh Thien (Crassule), Moc Te, Chuong Nao, and Thu Ly with scientific name of M Vyridiflora have essential oils which can be used to plaster small boats. The root of the Tu Quy tree is used to be a tonic drug soaking, filtering blood and digestion. Beautiful forest flowers have many colors and scents. Roots of orchids grow as a loose hair; their flowers are so gorgeous and vines wrap round slopes softly. The Doc Hien monkey is 1 of animals here with smooth surface, gray ash hair. In addition, there are many other kinds of bats, and salanganes. It seems that anyone who ever went to Da Nang knew to visit the Marble Mountains. It is very famous for many people to see it as a symbol of this land. Magical and romantic space, temples and caves, trees and temple bells, waves and the thousands of identical laundry is not far from city central. Marble Mountains has been truly a celestial realm for visitors long time ago.
The legend of Marble Mountains has said that: "Long time ago, this place was a desolate coast, and a 1 and only old man lived alone in a torn hut. One day, when storm emerged, a giant aquatic serpent appeared, struggled on the sand and dropped a huge egg and then disappeared in the sea. After that, a golden turtle appeared, named Kim Quy God, digged sand to bury the egg and gave the old man a claw with the mission of protecting blood of Long Quan. The egg was increasingly large and large; eggshell lighted up many colors such as sparkling green, red, white, yellow, purple. Until 1 day, the eggs hatched out a beautiful girl and eggshell separated 5 pieces into 5 tops: Metal, Wood, Water, Fire, and Earth. Nearly 200 years ago, King Minh Mang came here. He had himself named mountains, caves, temples with other names such as Ngu Hanh Son (Marble Mountains), Huyen Khong, Hoa Nghiem, Lang Hu, Tang Chan, Van Nguyet, Thien Long. The cultural and historical marks are shown in bold on each temple, tower of the beginning of century XIX, on each Cham sculptures of century XIV, XV. Marble Mountains has not only poetic writings of King Le, King Tran which imprinted on the moss rock in caves but also historical relics of revolutionary struggles such as: Chong Rock Mountain Tunnel, Ba Tho Grotto, Kim Son Mountain, Sheol Grotto.
Kim Son is the most modest mountain of 5 mountains stretching from east to west. It was located nearly Truong River extending to Han River. Ben Ngu traces of Nguyen dynasty rulers in scenic excursions Non Nuoc were still here. Nowadays, Ancient River has been partially filled into fields and ponds.
Quan Am ancient temple with Quan Am mysterious cave, which is seen as a magical natural masterpiece lain back on Kim Son Mountain. Visitors are very surprisingly interesting in front of Buddhist imageries created by stalactites when they visit Quan The Am Cave at the top of Kim Son Mountain. Statues of stalactites are also more lively due to a layer of sparkling stalactites as a strip of lame wrapping from the shoulder to the heel of statues. Below, a dragon was rolling in waves. Especially, a smaller statue that looks like Thien Tai pupil is behind the Bodhisattva and a peacock spreading its wide wings over the ceiling is on the left. This is a beautiful bas-relief that nature has given to Kim Son. Moc Son is located in southeast paralleling with Thuy Son. Although it called Moc Son but there are very few trees, the mountain also has a few small caves. Besides, there is a white plaster stone as a human. Thuy Son is the largest and the most beautiful mountain in landscapes of Marble Mountains. It is also major interest of visitors. The top of Thuy Son includes three tops on 3 storeys which look like 3 stars of Tam Thai. Therefore, it called Tam Thai Mountain. Tourists can see vast fields of Da Nang, Quang Nam and Truong Giang River, Cam Le River surrounded when standing on Vong Giang Dai if they come to visit Thuy Son. Visitors have even a panoramic look over a boundless land with bustling activities of boats. Moreover, tourists can see Cu Lao Cham island station when standing on Vong Hai Dai. The mountains themselves had many other legends as other places. Poetic space of landscape painting with romantic fairy tales brought to Marble Mountains the meaning that it was hard for other places to reach. The "road to heaven" with Van Thong Cave is the 1st convent place of the great master, Hue Dai Minh. The stone stela called "Ngu Uan Son" or "the way down hell" with Sheol Cave is now also stored here. It is said that if you put a shell of grapefruit engraved with your name into the cave; you could see it drift out to sea a few days later. The scene of the cave is extremely spectacular. Sunlight creeps through the corner of stone, and stalactites create numerous different shapes. Tourists can feel by their own experience, their own discoveries.
The mountain toward the SW of steep mountains and caves are dangerously quiet. Relics of towers of the Champa were still existed here. Especially, Princess Ngoc Lan (Minh Mang’s younger sister had come to mew in Da Son temple on this mountain). Da Son temple had remained autographs of King Minh Mang during a visit to his younger sister. Tho Son is the lowest of five mountains in the middle of Marble Mountains. Its square-shaped edges are not equal. Although Tho Son has mixed clay and rock without beautiful scenery, but it is rumored that Tho Son was the garrison of Champa. You can find sculpture pictures of them on stone when you visit here. Marble Mountains is not only famous for shimmering beauty of caves but also a spiritual space for ancient temples with a hundreds of years of history and considered the national characteristic relics of Buddha. In which, 2 biggest and oldest temples are Tam Thai and Linh Ung. You can buy souvenirs of stone carved by the skilled hand of artisans of Non Nuoc stone village when visiting Marble Mountains.
February 2010: AirAsia (ASW) purchased a 30% share in "VietJet Air (VJE)," a proposed Hanoi-based start-up that henceforth will be known as "VietJet AirAsia." (VJE) originally planned to begin flying in the 2009 4th quarter with either 737-800s or A320s, according to its website. The privately held carrier was launched with VND600 billion/$32.2 million in capital and is majority held by Sovico Holdings. (ASW) said the airline plans to operate both domestic and international flights and is "currently finalizing" a route network and launch plans. (ASW) also has airlines based in Malaysia, Thailand and Indonesia. It forged an alliance with Qantas subsidiary Jetstar Airways (IMU) last month. "The birth of VietJet AirAsia contributes to the diversification of the aviation market in Vietnam, providing more options to meet the air travel needs of people in Vietnam and in the region," (VJE) said."
December 2011: Vietjet Air (VJE) began commercial jet airplane services on December 25 between Ho Chi Minh City and Hanoi with a former Wataniya Airways (Kuwait), 180Y seat A320-214 (VN-A666), leased from Aviation Lease & Finance Company (ALAFCO) (AVF).
(VJE) was formed by private investors in 2007 as Vietjet Aviation and was to have operated as Vietjet AirAsia, but the Malaysian low cost carrier (LCC) AirAsia (ASW) withdrew in October 2011, citing lack of regulatory approvals.
(IATA) Code: VD. (ICAO) Code: VJC - (Callsign - "VIETJETAIR").
Company slogan: "Save more, Fly more."
1 A320-214 (VN-A666 - - SEE PHOTO - - "VJE-A320-214 - 2011-12"), ex-Wataniya Airways, (ALAFCO) (AVF) leased.
March 2012: VietJet Air (VJE), a Low Cost Carrier (LCC) that launched operations in Vietnam in December 2011, is expanding its schedule and in May 2012 will capture an estimated 9% of the domestic market. The growth honeymoon, however, will soon slow down and become competitive as Jetstar Pacific (PAH), now the (LCC) of Vietnam Airlines (VIE), plans to expand its fleet later this year. (PAH) currently only operates 5 737-400s and 2 A320s but will expand to an all-A320 fleet of 15 within a "few" years, possibly placing it on par with the 15 airplanes (VJE) plans to have by the end of 2014.
(VJE) will use some of its A320s on international routes, possibly starting late this year, but aims to capture about 20% of the domestic Vietnamese market. (VJE) currently has a fleet of 3 A320s although its current schedule (3 round trips between Hanoi and Ho Chi Minh) could easily be operated with just 1 airplane. (VJE)'s additional routes will fully or nearly fully utilize its current available capacity, allowing it to increase its market share from 3% to 9%.
VietJet (VJE)'s growing presence is also increasing the (LCC) penetration rate in Vietnam. In October 2011, (LCC)s accounted for approximately 16% of capacity, but in May 2012 will account for 22%. (LCC)s continue to have the lowest penetration rate in Vietnam amongst all major (ASEAN) countries.
(VJE)'s current schedule comprises only 3x-daily flights between Hanoi and Ho Chi Minh, the largest cities in the country's north and south, respectively. The route is by the largest in the country, accounting for about 30% of total domestic capacity in Vietnam. From April 27 2012, (VJE) will add 5x-daily return trips, bringing its frequency to 8x-daily services.
Last month, (VJE)'s plans were to more than double capacity between Hanoi and Ho Chi Minh. In announcing the increase to 8x-daily flights, (VJE) cited it had an average load factor above 90% LF in its 1st 2 months of operating the route.
All (VJE) services are operated by 180-seat A320s, bringing its weekly one-way seats on Hanoi - Ho Chi Minh to 10,080 (slightly exceeding Jetstar Pacific (PAH) with approximately 10,000 seats). Vietnam Airlines (VIE) now has 31,000 seats per week between Hanoi and Ho Chi Minh, while Air Mekong (MKE), a private carrier operating Bombardier (BMB) CRJ-900s primarily on regional routes, has 1,350 1-way seats per week on the route.
(VJE) also has confirmed it will launch 2x-daily services in late April between Ho Chi Minh and Da Nang, the largest city in central Vietnam and a hub for tourism. Ho Chi Minh - Da Nang is the country's 2nd-largest domestic route, but a duopoly between Vietnam Airlines (VIE), with approximately 15,000 weekly one-way seats and Jetstar Pacific (PAH) with 3,500 weekly seats. (VJE) will enter with 2,500 weekly seats and hopes to stimulate demand with fares -20% to -30% lower than Vietnam Airlines (VIE), according to (VJE) Managing Director Luu Duc Khanh.
(VJE)’s second route, Ho Chi Minh - Danang, is now the 2nd largest domestic route in Vietnam and the 2nd largest at Jetstar Pacific (PAH). (PAH) now operates 3x-daily flights on the route, giving it 20% of capacity on the route compared to 80% for Vietnam Airlines (VIE). Mr Luu says (VJE) fares are priced on average about -20% to -30% lower than (VIE). (PAH) also typically undercuts (VIE) with fares on the Ho Chi Minh - Hanoi route starting at only about USD50 one-way, including taxes.
(VJE) also has announced it will launch on May 19 2012 a daily flight on the country's 10th-largest route, Hanoi - Nha Trang. The route is the only 1 VietJet (VJE) will not face competition from Jetstar Pacific (PAH). (PAH) withdrew from the Hanoi - Nha Trang market in September 2011 after launching services only 3 months prior. Vietnam Airlines (VIE) is currently the only carrier at Nha Trang and offers 3,800 weekly one-way seats on the Nha Tran - Hanoi route (it also links Nha Trang with Da Nang and Ho Chi Minh).
(VJE)'s entrance to the Ho Chi Minh - Da Nang market and expansion on Hanoi - Ho Chi Minh is unsurprising. (VJE) in October 2011, speaking after the AirAsia (ASW) Group pulled out of a co-branding strategy, said it would launch without the AirAsia (ASW) branding and would focus on Ho Chi Minh to Hanoi and Danang, as well as Hanoi - Danang, the country's 3rd largest route.
May 2012: VietJet Air (VJE) now flies from Hanoi, Vietnam’s capital, to Nha Trang. The low-cost carrier (LCC) competes with Vietnam Airlines (VIE) and Jetstar Pacific (PAH). (VJE) started flying to Da Nang from Ho Chi Minh City.
October 2012: VietJet Air (VJE) has announced a major network expansion that will make it Vietnam’s largest low-cost carrier (LCC), overtaking Jetstar Pacific (PAH) by the end of 2012. (VJE) is also poised to beat rival (PAH) in becoming the 1st Vietnamese (LCC) to operate international services. (VJE), which will expand its domestic network from 5 to 9 destinations in November/December 2012, is looking at launching its 1st international route (possibly Ho Chi Minh - Bangkok) in late 2012 or early 2013.
(PAH) has been focusing this year on fleet renewal rather than expansion but is planning to resume expansion in 2013, ending a hiatus of 4 years in which growth was paused due partially to internal uncertainty. (PAH) began a more promising new chapter earlier this year after a 70% stake was transferred to Vietnam Airlines (VIE), which previously had been looking at launching its own (LCC) subsidiary. Jetstar (IMU) owns the remaining 30% stake in Jetstar Pacific (PAH)). But (PAH) may struggle to keep up with much newer (VJE), which is likely to continue expanding at a faster pace than (PAH).
VietJet Air (VJE) launched daily, Ho Chi Minh City (SGN) - Hai Phong A320 service. (VJE) continued expanding its domestic network. On October 28, (VJE) began operating on the route between the country capital Hanoi (HAN) in the north of the country and Da Nang (DAD), gateway to Central Vietnam and a center of the country’s booming coastal tourism industry. (VJE), which already serves Da Nang from Ho Chi Minh City, now operates the new route 2x-daily with its 180-seat A320s. Competition comes from Vietnam Airlines (VIE)’s 59x-weekly flights.
(VJE) will also launch (SGN) service to Hue (November 22), Vinh (November 15), Phu Quoc (December 20), and Hanoi - Dalat (December 7).
November 2012: VietJet Air (VJE) launched operations on another domestic route on 15 November. The Vietnamese low-cost carrier (LCC) now flies daily with its 180Y-seat A320s from Ho Chi Minh City (SGN) to Vinh (VII) airport in the north of the country. Competition comes from Vietnam Airlines (VIE)’s 17 and fellow (LCC) Jetstar Pacific (PAH)’s 14x-weekly flights. “We’re delighted to open this flight connecting Vinh city and Nghe An province to Vietnam’s largest business and tourism hub,” said Pritam Singh, Deputy General Manager of (VJE). “We believe our service will help meet the significant demand for travel between these 2 cities.”
VietJet Air (VJE) inaugurated operations on its 7th domestic route from Ho Chi Minh City (SGN) to Hue (HUI), located around 1,100 km to the north, on November 22. A320s will be deployed to operate the daily schedule. (VJE) competes on the route against Vietnam Airlines (VIE)’s 4x-daily frequencies. (VJE) generally6 competes with Jetstar Pacific (PAH), a joint venture between state-owned Vietnam Airlines (VIE) and Qantas (QAN).
December 2012: VietJet Air (VJE) inaugurated a new route from Hanoi (HAN) to the popular Vietnamese resort of Da Lat (DLI) on December 7. Known as “the flower of Vietnam,” Da Lat is considered as 1 of the country’s most enchanting destinations; (VJE) will operate the route on a daily basis using A320s in competition with Air Mekong (MKE) and Vietnam Airlines (VIE), which also each provide daily departures.
(VJE) inaugurated services on the domestic route from Ho Chi Minh City (SGN) to Phu Quoc (PQC), serving Vietnam’s largest island in the Gulf of Thailand. (VJE) will operate 2x-daily frequencies on the route using A320s. Competition on the route comes from Vietnam Airline (VIE)’s 42x- and Air Mekong (MKE)’s 12x-weekly flights.
February 2013: VietJet Air (VJE) went international as it launched daily flights on the 700 km route from Ho Chi Minh City (SGN) to Bangkok (BKK) on February 10. All flights to the Thai capital, which is VietJet Air (VJE)’s 1st destination outside of Vietnam, are operated with A320s. (VJE)’s Business Development Director, Desmond Lin, commented: “Our business plan for the 1st year of operation has been beyond our expectations. We now plan to spread our wings across the (APAC) region.” Significant competition is provided by Vietnam Airlines (VIE) (18x-weekly), Thai Airways (TII) (14x-), Turkish Airlines (THY) (7x-), Lufthansa (DLH) (3x-), and Qatar Airways (QTA) (2x-).
September 2013: VietJet (VJE) is pursuing further network expansion over the next few months as (VJE) looks to cement its position as the leading low-cost carrier (LCC) in the Vietnamese market. (VJE) is adding +3 more domestic routes for a total of 14 and is also preparing to launch services to Seoul, which would be its 2nd international destination after Bangkok.
VietJet (VJE) overtook Jetstar Pacific (PAH) as Vietnam’s largest (LCC) <1 year after its December 25th 2011 launch. By its 2nd-year anniversary at the end of 2013, (VJE) will account for >25% of capacity in the domestic market and have a fleet of 10 A320s: – on both counts, double the size of Jetstar Pacific (PAH).
But (PAH) is finally preparing a response as the Jetstar Group affiliate plans to launch international services by the end of 2013 and pursue domestic expansion. Jetstar Pacific (PAH) and its majority owner Vietnam Airlines (VIE) have done little so far to try to combat VietJet (VJE)’s rapid ascent. If (VJE) continues to expand quickly, a response is inevitable although (VJE) could try to avoid a potential conflict by focusing more on expanding planned joint ventures in other Asian markets.
Airbus began the 1st day of the Aviation Expo China 2013 securing commitments and orders from several Asia Pacific region carriers for up to 168 A320 family airplanes worth $15.3 billion based on current list prices.
The largest order came from Vietnam carrier, VietJetAir (VJE) signing a Memorandum of Understanding (MOU) for up to 92 A320 family airplanes, with a commitment of lease for +8 additional A320s from 3rd party leasing firms. (VJE)'s order includes 42 A320 new engine option (neo), 14 A320 current engine option (ceo), 6 A321ceo and purchase rights for +30 additional A320 family airplanes.
June 2013: 2 A320-213s (4475, VN-A680; 4512, VN-A681), ex-(RP-C8389 & RP-C8391), (GEF) leased.
October 2013: VietJet Air (VJE), the ambitious Vietnamese low cost carrier (LCC) that recently announced an order for >60 Airbus (EDS) narrow body airplanes (14 A320s, 42 A320neos and 6 A321s), has broadened its domestic network by launching daily flights on October 15th from Hanoi (HAN) to both Hue (HUI) and Buon Me Thuot (BMV) using its growing fleet of A320s. Competition on both routes will be provided by Vietnam Airlines (VIE), who offer 18 weekly flights on the 550 km Hue route, and daily flights on the 970 km Buon Me Thuot route. VietJet Air (VJE) currently has just >20% of the Vietnamese domestic market behind Vietnam Airlines (VIE) (67%), but ahead of Jetstar Pacific Airlines (PAH) (12%).
(KfW) (IPEX)-Bank and (AWAS) Aviation Capital (AWW) have closed the 5th financing under their 8 airplane Export Credit Agency-supported financing facility. The A320 airplane (5822) was delivered new to VietJet Air (VJE) and will be on a long-term operating lease to the carrier. The transaction closed October 28. The remaining airplanes are scheduled for delivery in the coming months.
November 2013: VietJet Air (VJE) has added another domestic connection from Ho Chi Minh City (SGN), with the introduction of daily flights to Qui Nhon (UIH) on November 1st. The coastal town of Qui Nhon in Central Vietnam has seen a growth in its tourism industry in recent years. VietJet Air (VJE) will be competing with Vietnam Airlines (VIE), who offer 2x-daily flights, on the 430 km route. (VJE), which will celebrate its 2nd anniversary in mid-December, now operates a network of 14 domestic routes, plus 2 routes to Bangkok.
December 2013: VietJet Air (VJE) is planning more ambitious expansion for 2014, including several new domestic and international destinations, as it looks to leverage its position as the largest low-cost carrier (LCC) in Vietnam. The privately-owned group also aims to launch at least 2 overseas joint ventures (JV)s in 2014.
SEE ATTACHED - - "VJE-2013-12 - EXPANSION."
VietJet (VJE), which turns 2 years old on December 25th, 2013, already accounts for about 25% of Vietnam’s domestic market. It aims to capture a 45% to 50% share of the domestic market by the end of 2015 as it grows its domestic network to an expected 20 destinations, up from 11 currently.
In the international market VietJet (VJE) only currently serves Bangkok. But (VJE) aims to launch services to Cambodia, Hong Kong, Indonesia, Korea, Japan, Singapore, and Taiwan by the end of 2014.
February 2014: VietJetAir (VJE) has finalized a deal for up to 101 Airbus A320 family airplanes.
The deal was completed at the Singapore Airshow at a signing ceremony with Airbus (EDS) President & (CEO) Fabrice Bregier and (VJE) Vice Chairwoman & (CEO) Nguyen Thi Phuong Thao. It covers firm orders for 42 A320neos, 14 ceos and 7 A321ceos plus 30 options and leases for +8t more A320s. Deliveries will start at the end of this year.
(VJE) has selected (CFM) International (CFM56-5B) engines to power 14 Airbus A320ceos and 7 A321ceos. The agreement, which follows the announcement that the Ho Chi Minh City-based airline finalized a deal for up to 101 Airbus A320 family airplanes, is valued at >$800 million at list prices.
The engine order was signed at the Singapore Airshow. VietJetAir (VJE) noted it has been a (CFM) customer since it launched operations in late 2011 with leased (CFM56-5B)-powered A320s.
(VJE) was launched 2 years ago and currently operates a fleet of 11 airplanes. It holds a 26% market share in Vietnam and has load factors of >90% LF.
March 2014: VietJet Air (VJE) will open new 7x-weekly A320 Ho Chi Minh - Changi service from May 23. (VIE) operates 23 domestic and international routes with >600 flights per week and has plans to expand operations to Taipei, South Korea, and Japan.
The opening of the Singapore route will add more regional capacity, as well as (LCC) competition, to existing carriers such as Silk Air (SLK), Jetstar (IMU), Lion (MLI), and Tigerair (TGR) (all of which are keen to enter the relatively untapped domestic and regional Vietnamese tourism market).
VietJet Air (VJE) has launched daily flights on the domestic route between Ho Chi Minh City (SGN) and Da Lat (DLI). Service on the short 214 km route began on Saturday March 22nd, and will be operated by the airline’s A320s. Competition will be provided by Vietnam Airlines (VIE), who operate the route 2x-daily. (VJE) already serves Da Lat from Hanoi with daily flights, a service it launched back in December 2012, and from Vinh, a route it launched in December 2013. (VJE) recently acquired its 12th A320, (VN-A678) complete with sharklets. This summer, (VJE) will operate 23 domestic and international routes, offering >10,000 seats per week.
April 2014: VietJet Air (VJE) plans to add >25,000 seats per weeks to its established routes over the summer peak period, including the launch of a new 7x-weekly, Hanoi - Phu Quoc Island service on May 28.
(VJE) Director Business Development, Desmond Lin said (VJE) plans to boost its overall capacity to 140x-weekly from Tan Son Nhat International Airport. “So as to meet demands of passengers in summer season, (VJE) is not only opening more new routes inbound and outbound, but is also increasing the frequency,” he said. The new destination launches just days after its new Singapore route begins May 23.
The move marks VietJet (VJE)’s increasingly ambitious expansion plans, based on what (VJE) sees as a highly undeveloped potential domestic market. It said it aims to attract Vietnam’s rising middle class and large Vietnamese diaspora as well as trans-regional Asian business travelers. “With the new routes launched, (VIE) continues to prove its expansion commitment and development on a larger scale in the Asia-Pacific region,” Lin said.
(VJE) has hinted it would be looking at an Initial Public Offering (IPO) next year following a $6.1 billion February order for 42 Airbus A320neos, 14 A320ceos and 7 A321ceos.
May 2014: VietJetAir (VJE) on May 23rd began its 1st service from Ho Chi Minh City (SGN) to Singapore (SIN). (VJE) will operate the 1,090 km route with daily A320 flights and faces intense competition. There are 5 carriers already serving the market; Tigerair Singapore (TGR) (23x-weekly), Jetstar Asia (JSA) (21x-), Vietnam Airlines (VIE) (21x-), Singapore Airlines (SIA) (14x-), Lion Air (MLI) (7x-). This is (VJE)’s 2nd international service from Ho Chi Minh City after starting daily flights to Bangkok in February 2013.
On July 22nd, VietJetAir (VJE) commenced a new domestic route from Da Nang (DAD) to Can Tho (VCA). The 715 km route will be served 3x-weekly (Tuesdays, Thursdays, Saturdays) using (VJE)’s A320s and faces no competition. On July 24th (VJE) also launched a new international route from Hanoi (HAN) to Seoul Incheon (ICN). The 2,720 km route will be served daily and faces competition from Asiana Airlines (AAR) (2x-daily), Vietnam Airlines (VIE) (2x-daily) and Korean Air (KAL) (11x-).
(VJE)’s fleet currently comprises 12 A320s, with orders for >60 of the type placed with Airbus (EDS).
August 2014: (IATA) (ITA) is calling for Vietnamese authorities to ensure there are appropriate regulatory structures in place to oversee an expected wave of airport construction and privatization.
(IATA) welcomes Vietnam’s efforts to improve its aviation infrastructure, (IATA)’s Director General & (CEO) Tony Tyler said during a speech in Hanoi. To accommodate projected traffic increases, the government has drafted an aviation master plan that includes a goal of having 26 airports by 2020. Expansion is being undertaken at the major Hanoi and Ho Chi Minh City airports, and there are also plans for a new, much larger, international airport near Ho Chi Minh City to be completed by 2020.
However, Tyler stressed there should be “careful planning and industry consultation leading to a well-thought-out regulatory structure in advance of any change to the current structure and ownership of Vietnam’s airports.” In particular, (IATA) is recommending the establishment of an “effective independent economic regulator.” Such a step would help ensure “fair charging schemes aligned with (ICAO) policies.”
According to (IATA), Vietnam has signaled its intention to open its airports to foreign investment and management, and to privatize the Airports Corporation of Vietnam. While privatization would provide access to much-needed investment, Tyler said (IATA) has “seen enough spectacular examples of unintended negative consequences to urge caution.” Having a strong economic regulator would help “balance the market power of privatized airports.”
September 2014: VietJet Air (VJE) has flagged the next step in its expansion plans on the back of recent figures showing +182% increase in passenger numbers over the previous 12 months. (VJE) said it is looking to extend its roster of international flights, currently restricted to Asian destinations, starting with Russia.
So far, these include Bangkok, Singapore, and Seoul, but earlier this month (VJE), which currently operates 15 Airbus A320s, signed a memorandum of understanding with Vladivostok International Airport to set up direct flights from Vietnam to Vladivostok. It has also said it intends to link to the tourist destination at Cambodia’s Siem Reap.
“Our objective is to be a multinational airline with a global product,” (VJE) (CEO) Luu Duc Kanh said. “Our mission is and has been to always expand our network,” he said. What airplane will be used for these flights is as yet unclear.
VietJet (VJE), which carried 3 million passengers in the 1st 6 months of 2014, has seen rapid growth since its 1st flights late in 2011. In 2013 (VJE) accounted for 26% of Vietnamese market share, but this was almost entirely on domestic routes. To break out of the relatively fresh local market, (VJE) will need to compete with other Asian low-cost carriers (LCC) including AirAsia (ASW), Tigerair (TGR), Nok Air (NKA), Thai Smile (TSM), and more.
This means a move into the relatively untapped Russia - Asia (LCC) sector makes sense, given (VJE)’s good links to other onward tourist destinations in SE Asia in Thailand, Cambodia, Singapore, and Korea.
However, (VJE) has seen some road bumps recently with a demand from the Civil Aviation Authority (CAA) of Vietnam to explain why it was taking longer (and cheaper in terms of airspace charges) routes over the S China Sea instead of more direct and fuel-efficient overland routes.
Nonetheless, (VJE) is still optimistic it can continue its expansion, and underscored its confidence with 1 of Airbus (EDS)’ biggest Asian orders in February this year, signing for 42 A320neos, 14 A320ceos and 7 A321ceos, along with an agreement to lease +7 more airplanes as part of the deal. It also signed for options on +30 more A320s.
VietJet (VJE) has also taken a broad-based sales approach, tapping into a nationwide network of cash-capable sales agents and ticket-enabled (ATM)s to boost sales, as well as offering travel agent incentives and special deals to hundreds of thousands of Vietnamese students.
Kanh said that part of the company’s rapid expansion is due to this sales model, tailored for a developing country’s relatively unbanked and unconnected population. “And we are receiving more brand new airplanes and will configure them according to the market need in line with future business expansion plans,” VietJet Business Development Director Desmond Lin said.
October 2014: Vietnamese low-cost carrier (LCC) Vietjet Air (VJE) is looking to introduce a raft of code shares with “major airlines” next year, Managing Director Luu Duc Khanh said.
November 2014: VietJetAir (VJE)’s 1st Airbus A320 has completed its 1st flight in Toulouse, France, entering the final acceptance phase prior to delivery, by the end of 2014.
The A320 is the 1st of up to 100 A320s to be acquired by (VJE).
The deal was finalized at the Singapore Airshow in February. According to Airbus (EDS), the acquisition plan covers firm orders for 63 airplanes, plus 30 purchase rights. In addition (VJE) will lease +7 more airplanes from 3rd party lessors.
The new airplanes will join an existing fleet of 16 leased A320s at the fast-growing carrier and will be operated on (VJE)’s expanding network of domestic and regional services.
December 2014: News Item A-1: VietJet Air (VJE) has made Thanh Hoa (THD) the latest airport on its growing network. (VJE) on November 25th began daily flights on the 1,104 km route to Ho Chi Minh City (SGN) using its A320s. This raises to 11 the number of domestic destinations served by (VJE) from the country’s largest city. The route is already served by Jetstar Pacific Airlines (PAH) and Vietnam Airlines (VIE), who also both operate daily flights. As part of (VJE)’s promotional campaign, 2,000 seats were given away free (excluding (VAT), airport fees and other surcharges). Also (VJE) received its 1st factory-fresh A320 from Toulouse, the 1st of an order of 100 airplanes that was finalized at the Singapore Air Show in February 2014. In a busy week for (VJE), it also announced on November 24th that it plans to start flights from various Vietnamese destinations to Vladivostok in Russia.
(VJE) has commenced its latest new route, this time from Ho Chi Minh City (SGN) to Taipei Taoyuan (TPE) (its 3rd international destination from the Vietnamese city). The 2,205 km sector began on December 12th and will be flown 5x-weekly by (VJE)’s 180-seat A320s. Competition will be intense, with 5x-daily flights offered by the incumbents ((EVA) Air (2x-daily), China Airlines (BEJ) (2x-daily), and Vietnam Airlines (VIE) (daily).
News Item A-2: VietJetAir (VJE) will begin its expansion in Russia with 3x-weekly, Airbus A320 Hanoi - Vladivostok service in May 2015. (VJE) plans to carry at least 40,000 passengers between Russia and Vietnam in 2015.
There has been no direct service between Vladivostok and Hamoi since Russia’s Vladivostok Avia left the market in August.
(VJE) will increase the number of routes to Vladivostok, establishing flights from Ho Chi Minh, Phu Quoc, Da Nang, Hue, and Nha Trang. Vladivostok Airport gained the "Open Skies" status in June 2012.
(VJE) is also interested in the other destinations in Russia such as Yekaterinburg and Novosibirsk.
News Item A-3: VietJet Air (VJE) has taken its 1st steps toward international expansion with the 1st flights of its new Thai VietJet Air subsidiary.
Since obtaining an air operator’s certificate (AOC) from the Thai Department of Civil Aviation, the new carrier (a joint venture (JV) between the Hanoi-based VietJet parent company and Chang Mai-based Kannithi Aviation) has conducted trials with a leased A320-200.
The new start-up hoped to launch scheduled domestic flights between Bangkok’s Suvarnabhumi International Airport and tourist destinations Phuket and Chiang Mai early this month.
However, the new subsidiary has failed to receive the go-ahead for its initial schedules, and has instead deployed the A320 on religious charter flight work to Gaya, India from Bangkok’s secondary Don Mueang International Airport.
The A320 will be used for Buddhist pilgrimage passengers and will fly the route on a weekly schedule. As yet, no information is available on when Thai VietJet will start its planned schedule.
Thai VietJet seeks to expand on VietJet (VJE)’s rapid expansion in the domestic Vietnamese market, which has seen (VJE) enter profitable operation in <3 years and place a major 100-airplane order with Airbus (EDS) last year. It took delivery of its 1st fully owned A320 in November, and expects to take delivery of 8 airplanes a year up to 2024 as part of its expansion plans.
News Item A-4: VietJet Air (VJE) and (CFM) International have signed a 12-year Rate Per Flight Hour agreement to support (VJE)’s fleet of 21 Airbus A320ceo airplanes powered by (CFM56-5B) engines.
News Item A-5: Delivery of 1st new A320-214 (6341, VN-A612).
March 2015: News Item A-1: Several low-cost carriers (LCCs) (including Cebu Pacific (CEB), Tigerair Taiwan (TTW) and Vietjet Air (VJE)) are pulling back from the region’s previous network expansion, concentrating instead on maximizing traffic on profitable routes.
Cebu Pacific (CEB) will introduce its 4th route to the Arab states with a 2x-weekly flight from Manila to Doha, Qatar. The 436Y all-economy A330-300 flights will start from June 4, and add to (CEB)’s existing Gulf States coverage to Dubai (UAE), Riyadh (Saudi Arabia), and Kuwait International. “It is [our] priority to maintain a strong presence in [established] regions, where we are able to reach a large population of Filipino communities,” (CEB) VP Commercial Planning & General Manager Long-Haul Alex Reyes said.
Meanwhile, Tigerair Taiwan (TTW) plans to extend its existing N Asia coverage (which currently includes Macau and Kaohsiung) with a new route to Tokyo Narita. The service, which will use A320s is set to launch in April. (TTW) has promised “definitely below market average” prices in a bid to boost load factors on the route.
(VJE) is also reinforcing its current network with increased frequency on its services to Singapore. Beginning May 30, (VJE) will launch a 2nd Ho Chi Minh City to its Singapore schedule. This will give (VJE) 2 return flights a day between the 2 cities, using A320s, and boost (VJE)’s route capacity to >5,000 seats a week.
News Item A-2: Airbus (EDS) has celebrated the delivery of its 9,000th airplane at a ceremony in Hamburg, Germany on March 20. The airplane is the 1st A321 to be delivered to (VJE) and will join (VJE)’s all-Airbus A320 family fleet flying on its fast-growing Asia to Pacific network.
News Item A-3: Vietnamese low-cost carrier (LCC) VietJet Air (VJE)’s 1st subsidiary, Thai VietJet Air (TVJ), will begin operations with a Bangkok to Phuket, Thailand schedule on March 29 using an A320-200. (VJE) originally planned to launch with flights from Bangkok’s Suvarnabhumi International, but it has opted instead for the cheaper Don Mueang (LCC) airport.
Using 4 A320-200s, the new subsidiary plans to extend services to Krabi and Udon Thani in Thailand, and Hanoi and Ho Chi Minh in Vietnam later this year.
The new venture recently saw key Thai investor Somphong Sooksanguan, President of Thai regional carrier, Kan Air, sell out of some 41% of his holding in the carrier. Somphong cited differences of opinion with the VietJet parent’s policies as the reason for diluting his holding to 10%, with the possibility of selling out completely. Unnamed Thai investors have bought his equity.
(TVJ) plans to expand its operations to China, India, Malaysia, Myanmar, Singapore, and South Korea, pending approvals from the Thai Department of Civil Aviation (DCA). Although (TVJ) was granted a Thai air operator’s certificate (AOC) last November, it has taken several months to gain route approvals from the relevant authorities.
VietJet Air (VJE), which currently operates an all-Airbus fleet of 22 A320-200s across SE Asia, also took delivery in Vietnam of its 1st of 7 Airbus A321s, marking Airbus’s 9,000th delivery.
April 2015: VietJet Air (VJE) is looking to expand its N Asian reach using alliances and joint ventures (JVs) with other airlines, rather than extend its existing route network.
(VJE) said it initially wants to establish (JV)s with other carriers in South Korea, Japan, and Taiwan. "N Asian is relatively less competitive; although SE Asia is still on our [expansion] radar, it is a little bit crowded,” (VJE) Managing Director Luu Duc Khanh said.
He added that the 5-year-old airline’s strategy is to establish local and regional markets and then establish a secondary market on regional and international routes. (VJE) is 1 of the fastest growing carriers in the region with >90 new airplanes on order from Airbus (EDS).
May 2015: News Item A-1: Vietjet Air (VJE) will open a new domestic route from Da Nang to Hai Phong from June 1, designed to connect with the (VJE)'s increased frequency of its Singapore to Ho Chi Minh City service.
News Item A-2: See video "Visit Ho Chi Minh City (very quickly)" - -
See video "Visit Da Nang + Fireworks show (very quickly)"
See video "VJE-Visit Hoi An (very quickly)" - -
A320-214 (6584, VN-A656), ex-(F-WWDT) delivery.
June 2015: News Item A-1: VietJet (VJE) has launched daily, Ho Chi Minh City to Dong Hoi Airbus A320 service.
Vietjet (VJE) will increase Ho Chi Minh City to Taipei service to daily from 5x-weekly and its Ho Chi Minh City to Seoul service to daily on November 7 with Airbus A320s.
News Item A-2: The Vietnamese government has approved plans to build a new $18 billion airport near Ho Chi Minh City that will offer a projected 100 million passenger capacity to replace the congested Tan Son Nhat International Airport.
The proposal for the new airport, to be named "Long Thanh International," was voted through the country's national Assembly with a near-90% majority. The airport, due to be built on a Greenfield site some 25 miles outside Ho Chi Minh City, is scheduled to start operations in 7 years.
Construction is slated to begin next year, and will be carried out in 3 phases, supervising engineers Japan Airports Consultants said. The 1st phase, which costs $7.8 billion, will see the 1st runway, passenger terminals, air traffic control (ATC) tower, and support service buildings completed and ready for use by 2023.
Initial capacity is set for 17 million passengers per year, but that will rise to 100 million passengers and 5 million tonnes of cargo a year by 2050.
The existing maximum capacity at Tan Son Nhat is around 25 million passengers, and projections indicate it will hit that in 2 years. It currently handles 20 million passengers a year, but Vietnam has seen dramatic expansion of both full service and low-cost airline schedules in recent years, causing delays and chronic congestion at several airports.
Once completed, the new airport would give Vietnam 1 of the largest passenger capabilities in SE Asia.
July 2015: News Item A-1: VietJet Air (VJE) announced its intention to collaborate and expand (VJE)’s future fleet with Boeing airplanes. The Memo of Collaboration (MoC) signing event was hosted by the USA Chamber of Commerce and witnessed by H E Nguyen Phu Trong General Secretary of the Vietnam Communist Party, along with other Vietnamese and USA government officials.
News Item A-2: Vietjet (VJE) has taken delivery of the 1st 230-seat Airbus A321, which offers an increased payload and a better passenger experience. The A321 comes equipped with Sharklets.
(VJE) Managing Director Luu Duc Khanh said (VJE) is committed to operating brand new airplanes in future to “bring our passengers greater comfort and maximum convenience.”
(VJE) placed an order for 6 A321ceo airplanes in June, bringing its order book with Airbus to 69 aircraft, with purchase rights for another 30.
The new A321 will join (VJE)’s all-Airbus fleet of 26 A320s and A321s and will be used to expand (VJE)’s network of 150 flights a day to regional Vietnamese and international destinations including Myanmar, Thailand, Singapore, South Korea, Taiwan, Cambodia, and China.
August 2015: Vietjet (VJE) launched a new Airbus A320 Vietnam - Myanmar route using A320 aircraft. The scheduled 5x-week service will fly from Ho Chi Minh City to Yangon from October, although charter trials have already begun.
October 2015: News Item A-1: Vietjet Air (VJE) began 5x-weekly, Ho Chi Minh City to Yangon Airbus A320 service.
News Item A-2: Avolon (AZV) delivered 1 A320-200 to VietJet Air (VJE). This is the Irish-based lessor’s 1st aircraft on lease to VietJet Air (VJE). Also note that Avolon (AZV) is in the process of being acquired by Bohai Leasing of China.
November 2015: "Dubai Air Show: Vietjet Air (VJE) Orders +30 More Airbus A321s" by (ATW) Editor Karen Walker, November 10, 2015.
Vietjet Air (VJE) signed a firm order for 30 Airbus A321s, including 21 A321neos, bringing its total firm orders for A320 family airplanes to 99.
The order was signed by (VJE) Vice-Chairwoman, President & (CEO) Ms Nguyen Thi Phuong Thao and Airbus (EDS) (COO) Customers John Leahy at the show, which has been a far slower event in terms of new airliner sales compared with the past two shows.
Boeing (TBC) on November 9 announced an order for 75 737 MAXs with India-based carrier Jet Airways (JPL), but the order was not new (it had been previously logged and attributed to an undisclosed customer).
(CFM) International later announced that its (CFM56-5B) engine would power the Vietjet (VJE) A321ceos in a deal valued at >$700 million at list prices, including spare engines and a long-term service agreement. No announcement was made on an engine choice for the neos, for which the (CFM) (LEAP) engine competes with the Pratt & Whitney (PRW) (GTF).
(VJE) also signed a 12-year rate-per-flight-hour agreement under which (CFMI) will guarantee maintenance costs for the all (CFM56-5B) engines on a dollar-per-engine flight-hour basis.
(VJE) has been a (CFM) customer since it launched operations in late 2011 with leased (CFM56-5B)-powered A320s.
(VJE) operates a fleet of 29 A320 family aircraft, including 3 A321s, on a network covering Vietnam and a growing number of destinations across Asia.
December 2015: Vietjet Air (VJE) began 7x-weekly, Ho Chi Minh City to Seoul (ICN) A320 service.
January 2016: "SE Asian Low Cost Carriers (LCC)s Add Thousands of Seats for Chinese New Year" by (ATW) Jeremy Torr, January 13, 2016.
SE Asian low-cost carriers (LCCs) are introducing many new schedules to handle thousands of extra travelers during the upcoming Chinese New Year peak travel period, slated for February 8 to 9.
A spokesperson for (JSA) said (JSA) would add 29 extra schedules from its base in Singapore over the holiday period, on destinations including Kuala Lumpur, Penang, Hong Kong, Shantou, Haikou, and Hangzhou. This will add >5,000 seats to its existing roster.
Singapore’s Tigerair (TGR) will also add +14 extra flights with >2,500 seats to 5 key Chinese New Year destinations at Ipoh, Kuala Lumpur, Penang, Guilin, and Ningbo during the 2nd week of February. Tigerair Taiwan (TTW) is to launch 2 new routes for the Lunar New Year with Taoyuan - Fukuoka and Taoyuan - Nagoya starting operations late January.
Vietnamese (LCC) Vietjet Air (VJE) is adding +800 extra flights to its normal schedules over the Tet (Vietnamese Lunar New Year) holiday between January 20 and February 20. (VJE) estimates this will see some +150,000 tickets added to its normal sales schedule.
(VJE) will also introduce 3 new domestic routes at the end of January. These are a 4x-weekly, Pleiku - Hai Phong service, a 3x-weekly, Pleiku - Vinh flight and a daily, Ho Chi Minh City - Tuy Hoa service, all to coincide with the holiday season.
A spokesperson for Singapore’s Changi Airport said the period would normally push Singapore passenger traffic up by +5% in the month that sees Chinese New Year travel.
February 2016: News Item A-1: Vietjet Air (VJE) began 3x-weekly, Hanoi - Taipei Airbus A320 service on February 1.
News Item A-2: "Airbus Extends Support Footprint in SE Asia"
by (ATW) Jeremy Torr, February 17, 2016.
Airbus (EDS) has signed significant support agreements with (SIA) Engineering Company (SIAEC) and Vietnam-based low-cost carrier (LCC) Vietjet Air (VJE) to further extend its technical reach in Southeast Asia.
The agreement with (SIAEC) will see the formation of a Singapore-based joint venture (JV) that will offer airframe and heavy maintenance services but will also provide cabin upgrades and modifications on Airbus A330, A350 and A380 aircraft.
The agreement with (VJE) will see Airbus collaborate with the carrier to provide flight and Maintenance Repair & Overhaul (MRO) training for (VJE) aircrew and engineers (MT). Based in Hi Chi Minh City, the training center will feature a flight simulator for A320 training, as well as “bringing Airbus’ and (EASA)’s standards to Vietjet (VJE),” the company said.
(VJE) VP, Dinh Viet Phuong said the collaboration “marks a new milestone for both [companies].” He added, “Investment in an aviation institute is one of the most important goals in (VJE)’s sustainable growth strategies.”
(SIAEC) (CEO) Png Kim Chiang said the new Singapore maintenance facility will lease 2 hangar bays from (SIAEC) for initial operations, with plans to add another 2 hangar bays over the next 6 years.
(SIAEC) said the new (JV) will provide an Asian Center of Excellence for heavy maintenance of the Airbus A380 and A350, and will offer its services to third party carriers from across the region.
The new deals build on Airbus (EDS)’ existing deal signed 2 years ago with Lion Air (MLI) to provide support and training to Indonesian aircrew, and a preliminary deal in 2015 to work on training services by the 2 companies.
Airbus (EDS) (CEO) Fabrice Brégier said (EDS) sees the Asia-Pacific region as a key market for [Airbus] wide body aircraft and setting up the Singapore facility reflects its strategy to “develop a full range of support services near to [operators] home bases.”
News Item A-3: SR Technics (SWS) has signed a 6-year component support contract with Vietjet Air (VJE) for A320s and A321s. (SWS) will provide the services in Ho Chi Minh City from March 2016.
May 2016: News Item A-1: Vietjet Air (VJE) finalized an order for 100 Boeing 737 MAX 200 narrow bodies, a deal worth some $11.3 billion at list prices.
Boeing (TBC) said the order, finalized during a visit to Vietnam by USA President, Barack Obama, was the biggest single commercial airplane deal made in Vietnam.
Vietjet (VJE) (CEO) Nguyen Thi Phuong Thao said the deal would “accommodate [(VJE)’s] strategy of growing its international route network, including long-haul flights.” The airplanes will be delivered from 2019 through to 2023, supporting (VJE)’s growth target of >200 airplanes by the end of 2023.
The 737 MAX 200 airplanes, which will be powered by (CFM) (LEAP-1B) engines, will boost Vietjet Air (VJE)’s existing order book for a total of 99 Airbus A320s, including a recent order for 30 A321neo aircraft at the end of 2015. In February 2016, (VJE) also signed a $3 billion-plus deal with Pratt & Whitney (PRW) for (GTF) engines for the new A320neos.
To date, (VJE) has flown an exclusively Airbus (EDS) fleet, and it recently signed an agreement to set up a joint Vietjet (VJE) - Airbus (EDS) flight and maintenance training center at Ho Chi Minh City.
(VJE) flies 34 A320 and A321s to 250 destinations, >50 routes within Vietnam, and to regional and international destinations such as Thailand, Singapore, S Korea, Taiwan, China, Myanmar, and Malaysia.
The major purchase agreements Vietjet signed in Hanoi on May 23 represent very good news for 2 engine manufacturers as well as Boeing (TBC).
(VJE)’s May 23 order for 100 Boeing 737 MAX 200 airplanes and the signed deal being witnessed by Tran Dai Quang, the President of the Socialist Republic of Vietnam, grabbed most aviation media attention.
Boeing valued the order at about $11.3 billion at 2016 list price, suggesting that today’s list price for the 737 MAX 200 (a 200-seat version of the 737 MAX 8) is around $113 million. However, (VJE) is very unlikely to be paying anywhere near that much for its airplanes. This is partly because the order represents a big breakthrough for Boeing (TBC) at what has been until now an all-Airbus (EDS) customer, partly because (VJE)’s 737 MAX 200 order is for so many airplanes and partly because industry observers reckon both (TBC) and (EDS) routinely discount the prices of most of their single-aisle aircraft by -50% or more.
Much less noticed in the blaze of publicity surrounding Vietjet’s Boeing (TBC) order are the two large purchase agreements (VJE) also signed on May 23 for engines to power many of the aircraft it has on order. Pride of place among the two engine deals was (VJE)’s order for 215 (CFM) International (LEAP-1B)s to power its new Boeing 737 MAX 200s, of which the airplanes will take delivery from 2019 to 2023.
(VJE)’s (LEAP-1B) order includes 200 installed engines on the airplanes, plus 15 spare engines. (CFM) values the engine order at $3 billion at list price, suggesting that (CFM)’s 2016 list price for the (LEAP-1B) is <$14 million per engine. As with the 2 previous generations of 737s, both of which only are available with (CFM) International engines (the (CFM56-3) in the case of the 737-300/-400/-500, and the (CFM56-7B) in the case of the 737-600/-700/-800/-900), a (CFM) engine (in this case the (LEAP-1B)) is the sole engine choice available when ordering any member of the 737 MAX family.
However, that is not the case for the main rivals of the 737NG and 737 MAX families, the A320 and A320neo families. Until May 23, (VJE), which has only been flying since December 25, 2011, was a customer only for A320-family aircraft. Today, the young carrier’s fleet consists of 27 A320s, 17 of which it has leased, and 5 A321s (these latter aircraft ordered by (VJE) directly from Airbus (EDS)). (VJE) also holds outstanding orders with Airbus for 2 A320s and 19 A321s.
All of the current-generation A320-family aircraft (VJE) now operates and has on order are powered by (CFM56-5B) engines, so by placing its order for 100 Boeing 737 MAX jets, (VJE) is likely by 2023 to have at least 150 (CFM)-powered aircraft in service. This number will include both (EDS) and (TBC) models and any additional leased current-generation A320-family jets and Boeing 737 MAXs (VJE) decides to lease.
However, (VJE) is also a substantial customer for the (EDS) A320neo family, having to date, placed firm orders for 42 A320neos and 21 A321neos. For these aircraft, (VJE) has chosen to break away from using (CFM) power. On May 23, in a deal not quite as large as its (CFM) (LEAP-1B) purchase agreement, but still very substantial in its own right, (VJE) signed a firm order for Pratt & Whitney (PRW) (PW1100G-JM) Geared Turbofan (GTF) engines to power all 63 A320neo-family aircraft it has ordered to date. In announcing the deal, (PRW) didn’t indicate either the list-price value it put on the (GTF) order, or how many spare engines (VJE) may have decided to order. But it is likely the deal does include some spare engines.
It is possible (VJE) may have ordered up to 9 spare (PW1100G-JM)s, this number being in similar proportion to the number of engines (VJE) ordered from (CFM) as spares for the 200 installed engines it ordered. 1 would assume the list price of the (GTF) is probably a little higher than that of the (LEAP-1B). This is because the (PW1100G-JM) engine is capable of substantially more maximum take-off thrust than the (LEAP-1B), which offers up to 28,000lb/124.55kN of take-off thrust. (In addition to having a smaller fan diameter than the (LEAP-1A) and (LEAP-1C), whose fan diameters and turbomachinery are identical, the (LEAP-1B) has a slightly smaller core diameter than the other 2 (LEAP) models and 2 fewer low-pressure turbine stages
The (PW1100G-JM)’s greater thrust output is particularly required for the A321neo, which requires 33,000lb - 35,000lb/146.8kN - 155.7kN of maximum take-off thrust at maximum take-off weight on a long sector, depending on the altitude of the runway from which the A321neo is departing. Assuming that the list price for the (PW1100G-JM) is a little <$15 million and that (VJE) has ordered 135 examples of the engine (126 of them installed and another 9 being spares), then 1 can derive a rough list-price value of about $2 billion for (VJE)’s May 23 order for (PW1100G-JM)s.
The possibility exists that Vietjet isn’t paying list price for its (LEAP-1B) and (PW1100G-JM) engines. Even so, dollar amounts of the magnitude of those in (VJE)’s (CFM) and (PRW) orders show that both manufacturers have every reason to feel pleased about the Vietnamese carrier’s latest business. Now planning the locations of their spare-engine pools for their respective new engine families, as well as beginning to focus on which (MRO) facilities they should partner with to provide truly global coverage for unplanned and future scheduled performance-restoration shop visits, the two engine (OEM)s should be more incentivised than ever to look at locations in SE Asia.
News Item A-2: A320-214 (6378, HS-VKB), leased to Thai VietJet Air ((IATA) Code: VZ, (ICAO) Code: TVJ), ex-(VN-A659).
October 2016: See video: "VJE - A321-214SL."
January 2017: 2 A320-214 (888, ES-SAK; 1896, ES-SAM), SmartLynx Airlines Estonia leased to VietJet Air (VJE). 2 A320-214 (4207, /10 TC-FBH; 5096, /10 TC-FBO) wet-leased to (VJE), ex-Freebird Airlines .
May 2017: 1 A320-214 (3025, TC-FHB), ex-(D-AAAP), Freebird Airlines leased, 3 A321-211 (7658, VN-A640; 7675, VN-A631; 7684, VN-A641), ex-(D-AVYM; D-AVAS; & D-AVYV) delivery.
November 2017: "VietJet (VJE) May Buy 787s or A350s as (VJE) Weighs USA Routes" by Bloomberg News, Nov. 13, 2017
VietJet (VJE) plans to expand its fleet to include wide body jets as (VJE) considers California as its 1st USA destination starting about 2019. (VJE), Vietnam's biggest private airline would use the larger airplanes to begin the route after the USA Federal Aviation Administration (FAA) grants Vietnam Airlines (VJE) permission to fly to the USA, said Nguyen Thi Phuong Thao, VietJet's Founder and Chairwoman.
The 1st flights could link the SE Asian nation with the Norman Y Mineta San Jose International Airport, located near a large Vietnamese community, and would also be close enough to serve San Francisco, she said. "We aim to expand international flights in the next few years" Thao said in an interview. "We want to make international flights 60% of our total flights. We are also studying the possibility of using wide body airplanes for other long-haul flights, when market conditions are favorable."
VietJet (VJE), known for a publicity stunt involving bikini-clad flight attendants (CA) is expanding rapidly as it goes head on with Vietnam Airlines Corp. for a larger slice of an air-passenger market that the International Air Transport Association estimates will be among the world's 5 fastest-growing in the next 20 years. (VJE) (CEO) Duong Tri Thanh said that the state-controlled (VJE) is considering a route to Los Angeles by late 2019 or early 2020.
(VJE) (which currently only operates single aisle aircraft) signed a US$600 million deal on November 12 to acquire Pratt & Whitney (PRW) engines to outfit 10 narrow body jets during a ceremony with USA President Donald Trump in Hanoi. Prsident Trump visited the nation's capital after attending the Asia-Pacific Economic Cooperation (APEC) leaders' meeting in Danang. The latest deal is separate from a US$3.6 billion contract signed earlier this year for 215 engines.
(VJE)'s international capacity has soared by >150% in the past year.,
"The domestic market has had this great growth in the last 5 years, tripling in size, but there is a limit to that," he said. "A lot of these people who have become 1st-time fliers in the last 5 years will be able to travel overseas as they build their discretionary income."
(VJE) has ordered 230 Airbus and Boeing airplanes since 2014. (VJE) and national carrier Vietnam Airlines (VIE) each had a 42% share of the domestic aviation market last year, though VietJet (VJE)'s 2017 share is probably less, as it focuses on overseas expansion.
Last year, (VJE) the budget carrier ordered 100 Boeing 737 Max 200 airplanes with a list price of US$11.3 billion. It agreed to buy 30 A320neos valued at US$3.6 billion in 2015, adding to an order for as many as 100 Airbus planes a year earlier.
VietJet (VJE), which began operations in December of 2011, expects to serve 17 million passengers this year, after carrying about 15 million travelers last year. (VJE) expects its 2017 profit to rise +10% from its target for the year, according to Thao.
VietJet (VJE)'s international expansion has focused entirely on Asia, with >400 weekly overseas flights scheduled by the end of this year, up from just 130 a year ago in October, Sobie said. Flying to the USA will be a much tougher challenge for (VJE) as it goes up against entrenched carriers, Sobie said. "The competition is very fierce," Sobie said. "When you fly >12 hours, it becomes more expensive. There are huge costs initially. The prospect of making money on this route is bleak."
VietJet (VJE) will be able to differentiate its service to offset those headwinds, such as offering service to regional airports in San Jose and Orange County, California, which also has a large Vietnamese population, Thao said. "We are looking at airports where there is a demand but not many airlines flying there," she said.
Click below for photos:
VJE-737 MAX 200 - 2016-05.jpg
VJE-A320 WITH SHARKLETS - 2013-09
VJE-A320-200 - 2014-10
VJE-A320-214 - 2011-12
VJE-A321-200 - 2015-03.jpg
VJE-A321-200 - 2015-07.jpg
VJE-A321-211 - 2015-02.jpg
VJE-MD-83 - 2015-06.jpg
100 ORDERS (2019-02) 737 MAX 200 (CFM) (LEAP-1B):
99 ORDERS A320 FAMILY AIRPLANES + 8 ADDITIONAL A320'S FROM 3RD PARTY LEASING FIRMS, THE TOTAL INCLUDING 14 A320ceo (CURRENT ENGINE OPTION), 42 A320neo (NEW ENGINE OPTION), 6 A321ceo & PURCHASE RIGHTS FOR +30 ADDITIONAL A320 FAMILY AIRPLANES:
3 A320-200 (CM56-5B4), 162Y.
2 A320-214 (888, ES-SAK; 1896, ES-SAM), SMARTLYNX AIRLINES ESTONIA LEASED 2017-01. 162Y.
3 A320-214 (CFM56-5B4) (3739, /08 VN-A666, 2011-12 - - SEE PHOTO - - "VJE-A320-214 - 2011-12;" 3791, /09 VN-A668, 4049, /09 VN-A669), ALAFCO (AVF) LSD, EX-WATANIYA AIRWAYS (WYA). 26F, 96Y.
3 A320-214 (CFM56-5B4) (2712, /06 VN-A688; 4190, //10 VN-A689; 4193, /10 VN-A699), 162Y.
1 A320-214 (CFM56-5B4) (4207, /10 TC-FBH), AERDRAGON LSD 2010-02 WET-LEASED TO VIETJET AIR (VJE) 2017-01. 180Y.
1 A320-214 (CFM546-5B4) (5096, /10 TC-FBO), WET-LEASED TO VIETJET AIR (VJE) 2017-01. 180Y.
2 A320-214 (CFM56-5B4) (4475, VN-A680; 4512, VN-A681), EX-(RP-C8389 & RP-C8391), (GEF) LSD 2013-06. 162Y.
1 A320-214 (CFM56-5B4) (6341, VN-A612), EX-(F-WWBP), 1ST NEW AIRPLANE. 2014-12. 162Y.
1 A320-214 (CFM56-5B4) (6584, VN-A656), EX-(F-WWDT), 2015-05. 162Y.
1 A320-214 (CFM56-5B4) (3025, TC-FHB), EX-(D-AAP), FREEBIRD AIRLINES LEASED 2017-05. 162Y.
1 A320-214 (CFM56-5B4) (5822), (AWW) LSD 2013-10. 162Y.
4 +2 ORDERS A321-211ceo (CFM56-5B) (7658, VN-A640; 7675, VN-A631; 7684, VN-A641; 7689, VN-A660), 2015-03, 2015-07, 2017-05 AND 2017-06, WITH SHARKLETS. 230Y.
1 A321-211 (6852, VN-A665), EX-(D-AVXK) (AWAS) (AWW) LSD 2015-11.
30 ORDERS A321neo (PRW) (GTF):
Click below for photos:
VJE-2-NGUYEN THI PHUONG THAO - 2014-02
MS NGUYEN THI PHUONG THAO, FOUNDER & VICE CHAIRWOMAN, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO).
LUU DUC KHANH, MANAGING DIRECTOR.
DUONG TRI THANH, CHIEF EXECUTIVE OFFICER (CEO).
MS NGUYEN THI THUY BINH, VP COMMERCIAL & SERVICE.
DINH VIET PHUONG, VICE PRESIDENT.
DESMOND LIN, DIRECTOR BUSINESS DEVELOPMENT.
VU QUOC, HEAD OF MARKETING & PUBLIC RELATIONS (PR).