VietJet Air, a Vietnamese start-up carrier, and Sukhoi Civil Aircraft Company signed (22-Oct-2009) a protocol confirming the readiness of the Vietnamese airline to consider the Sukhoi Superjet 100 regional aircraft. The agreement was signed within the framework of the 13th regular session of the Russia-Vietnam intergovernmental commission on commercial, technical and scientific cooperation. [more]
Sukhoi Civil Aircraft Company welcomes new Sukhoi Superjet 100 potential customer
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AirAsia initiates third attempt to launch Vietnamese JV; Vietnam maybe overburdened with LCCs
The AirAsia Group has forged a new joint venture in Vietnam, marking its third attempt to establish a Vietnamese affiliate. AirAsia was initially partnered with VietJet Air but the partnership was dissolved prior to VietJet commencing operations in late 2011.
The market has since more than doubled in size, and Vietnam has emerged as Southeast Asia’s fastest growing market. While there is further growth potential, the LCC incumbents VietJet and Jetstar Pacific have first mover advantage, and infrastructure constraints could make it difficult for any new entrant to establish a significant presence. AirAsia will also need to overcome regulatory hurdles.
Vietnam is the second largest market in Southeast Asia without an AirAsia affiliate - after Singapore, where the group has been able to develop a sizeable presence with a virtual hub. Vietnam is a market AirAsia strategically cannot avoid, but the group is late to the party and faces some of the same obstacles that have impacted its performance in the Philippines.
VietJet Air 2017 outlook: IPO to fund accelerated international expansion as competition intensifies
VietJet Air is poised for another year of milestones and rapid growth in 2017. The Vietnam based airline group’s fleet will reach 50 aircraft and should surpass 20 million annual passengers in 2017 – remarkable achievements for a company that is only six years old.
VietJet also plans to complete an initial public offering in Feb-2017 with a listing on the Ho Chi Minh Stock Exchange. The IPO raises capital to help finance a massive order book of nearly 200 additional aircraft.
However, the airline faces challenges in 2017 as the group accelerates expansion in a highly competitive international marketplace. VietJet, which turned five years old on 25-Dec-2016, has focused mainly on domestic services in Vietnam but is banking on its JV in Thailand and a much larger international operation to drive its next phase of growth.