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VietJet Air plans ambitious expansion including Vietnam’s first long-haul low-cost operation

Analysis

VietJet Air plans to pursue significant expansion of its international network over the next few years as the carrier rapidly expands its A320 fleet and looks to launch a widebody operation.

Singapore will in May-2014 become VietJet's second scheduled international destination after Bangkok. Several more international destinations in Southeast and North Asia are expected to be added by the end of 2014. The airline also aims to begin serving Australia, Europe and the Americas within three years using a new fleet of widebody aircraft.

In addition VietJet is pursuing ambitious growth outside its home market: its first overseas joint venture, Thai VietJet, is preparing to launch services in Sep-2014. Thai VietJet will initially operate three A320s while in the Vietnamese market VietJet will add seven A320s in 2014 for a total of 17 aircraft. Both airlines will use the additional capacity to launch a relatively even mix of new domestic and international routes.

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