Vietnam's Government plans to construct two new international airports in Hai Phong and Dong Nai (Thanh Nien, 26-Nov-2010). The government has ordered the Ministry of Transport to study the affect the airports will have on the economy. Southern Airports Corp is expected to commence construction on the USD6.74 billion Long Thanh International Airport in Dong Nai Province in 2018. The first phase of the project is expected to complete by 2020. By 2035, the airport will be able to serve 80-100 million passengers and handle 3 million tons of cargo p/a.
Vietnam to construct two new airports
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VietJet Air Part 3: international expansion accelerates as IPO approaches and order book grows
Vietnamese LCC VietJet Air is accelerating international expansion with at least five new routes in 4Q2016. VietJet will end 2016 with at least 14 international routes, compared with only seven at the beginning of 2016.
The Vietnamese LCC turns five years old in Dec-2016 and is approaching a critical juncture as it starts to pursue faster international expansion and prepares for an initial public offering (IPO). VietJet has been very successful in the Vietnamese domestic market, driving rapid growth and quickly capturing a 40% share.
With international expansion come higher risks and more challenges. VietJet is betting it can succeed internationally after placing orders for another 120 aircraft in recent months, raising its order book to 200.
Thai VietJet Air Part 2: international expansion will be challenging for VietJet’s new JV
Thai VietJet Air has launched scheduled services with two domestic routes and flights to neighbouring Vietnam, the home market of its parent. The start-up, which is 49% owned by the VietJet Group, is considering the addition of several domestic and international routes in the coming months as it is allocated more A320s from VietJet’s 200 aircraft-strong order book.
However both domestic and international expansion will be challenging, given the already intense competition in Thailand’s short haul LCC sector. Virtually every market Thai VietJet is evaluating is already served by more established LCCs, and /or is also being targeted by other Thai LCCs.
This is the second half of an analysis report on Thai VietJet Air’s launch of scheduled services and outlook. The first part focused on the new LCC’s prospects in the domestic market. This part examines opportunities for Thai VietJet in Thailand’s international market.