Hanoi Noibai Airport

VietJet to pursue more rapid expansion in 2013; Jetstar Pacific needs to respond – fast

VietJet Air is planning to add three new domestic and three new international routes in the coming months as Vietnam’s leading low-cost carrier continues to pursue rapid expansion. VietJet has already surpassed rival LCC Jetstar Pacific to become Vietnam’s second largest carrier after Vietnam Airlines with approximately a 15% share of the country’s fast-growing domestic market. The privately-owned carrier will see its share of capacity in Vietnam’s domestic market approach 20% by mid-2013 – an impressive achievement given it only launched services in Dec-2011.

VietJet now operates 10 routes, including one international route, with a fleet of six A320s. It plans to operate by the end of 2013 a fleet of 10 A320s on 16 routes – 12 domestic and four international.

VietJet starts to exploit huge potential of Vietnam’s international low-cost airline market

Vietnam’s largest low-cost carrier, VietJet Air, is preparing to quickly expand its international network, taking advantage of growing demand for budget travel to and from Vietnam. The carrier launched its first international route on 10-Feb-2013, Ho Chi Minh-Bangkok, and is looking at several additional potential international destinations in Southeast and North Asia.

Two more international routes as well as additional capacity domestically, where VietJet already has captured a 15% share of the market, are expected in 2013. Vietnam is poised for further LCC domestic and international growth as LCC penetration rates in the country’s domestic and international markets are the lowest among major Southeast Asian countries. VietJet is well positioned, along with a rejuvenated but still very small Jetstar Pacific, to cash in on Vietnam’s LCC boom.

VietJet overtakes Jetstar Pacific as largest Vietnamese low-cost carrier

VietJet Air has announced a major network expansion that will make it Vietnam’s largest low-cost carrier, overtaking Jetstar Pacific, by the end of 2012. VietJet is also poised to beat rival Jetstar Pacific in becoming the first Vietnamese LCC to operate international services. VietJet, which will expand its domestic network from five to nine destinations in Nov/Dec-2012, is looking at launching its first international route – possibly Ho Chi Minh-Bangkok – in late 2012 or early 2013.

Jetstar Pacific has been focusing this year on fleet renewal rather than expansion but is planning to resume expansion in 2013, ending a hiatus of four years in which growth was paused due partially to internal uncertainty. The carrier began a more promising new chapter earlier this year after a 70% stake was transferred to Vietnam Airlines, which previously had been looking at launching its own LCC subsidiary (Jetstar owns the remaining 30% stake in Jetstar Pacific). But Jetstar Pacific may struggle to keep up with much newer VietJet, which is likely to continue expanding at a faster pace than Jetstar Pacific.

VietJet launch not affected by AirAsia pullout

AirAsia’s decision last week to not go forward with its Vietnamese joint venture is a major setback for the AirAsia Group and Vietnam’s promising aviation market. But by no means does it spell an end or even a delay for AirAsia’s Vietnamese partner, VietJet Air, which is moving forward with plans to launch services in Dec-2011 without AirAsia.

Vietnam’s LCC market poised for explosive growth as VietJet AirAsia launches and Jetstar expands

The Vietnamese aviation market is poised for significant low-cost carrier growth as a new AirAsia affiliate launches services at the end of this year and the country’s first LCC, Jetstar Pacific, plans to finally implement long-delayed expansion plans. Meanwhile flag carrier Vietnam Airlines is preparing to launch its own LCC subsidiary or unit by 2014. Three LCCs may seem like too many for a market which last year consisted of only about 20 million passengers, but is reasonable when considering the rapid economic growth in the country and the small size of its LCC sector compared to other ASEAN countries.