Loading profile info

VietJet boldly starts to build pan-Asia low-cost portfolio, starting with new JV in Thailand

Analysis

Vietnam's VietJet Air has started to pursue a pan-Asia LCC group strategy, initially establishing a joint venture affiliate in Thailand. If successful, VietJet could climb up the rankings in the dynamic Southeast Asian LCC market, where it now accounts for a tiny 2% of capacity. But the risks are high as the Southeast Asian LCC market is already highly competitive, with 22 carriers and several more in the works.

The planned launch of Thai VietJet and the pursuit of joint ventures in other ASEAN countries represent an ambitious move given that VietJet is only 18 months old. VietJet has quickly established itself in Vietnam but its brand is an unknown in other parts of Asia, which will make it a challenge to overcome the first mover advantages of AirAsia, Jetstar, Lion and Tiger.

In its first venture, in Thailand, VietJet will face stiff competition from two well-established LCCs, Thai AirAsia and Thai Airways affiliate Nok Air. Lion also plans to launch a joint venture in Thailand, a market which is growing but is unlikely able to support so many LCCs.

Read More

This CAPA Analysis Report is 2,313 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More