New LCC VietJet closing in on double-digit market share in fast growing Vietnamese domestic market

VietJet Air, an LCC that launched operations in Vietnam in Dec-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, now the LCC of Vietnam Airlines, plans to expand its fleet later this year. Jetstar Pacific currently only operates five Boeing 737-400s and two Airbus A320s but will expand to an all-A320 fleet of 15 within a "few" years, possibly placing it on par with the 15 aircraft VietJet plans to have by the end of 2014.

VietJet 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. VietJet currently has a fleet of three A320s although its current schedule - three roundtrips between Hanoi and Ho Chi Minh - could easily be operated with just one aircraft. VietJet's additional routes will fully or nearly fully utilise its current available capacity, allowing it to increase its market share from 3% to 9%.