Vietnam Airlines spokesperson stated that plans for an IPO “was relaunched at the start of the year with government agreement but its implementation is not certain this year" as there are still "many formalities" to be completed (AFP, 01-Mar-2011). It has not been revealed how much of a stake it expects to offer for sale.
Vietnam Airlines yet to reveal timing for IPO
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Jetstar Pacific 2017 outlook: third consecutive year of 40% growth as 10 A320ceos are delivered
Vietnam’s Jetstar Pacific is planning more rapid expansion in 2017 as it takes delivery of 10 A320ceos that were ordered in 2016. The Vietnam Airlines-Qantas joint venture intends to use the 10 aircraft for a mix of growth and replacements for wet leased aircraft.
The LCC has grown rapidly since its two shareholders decided to accelerate expansion in 2014, a strategically critical move for the Vietnam Airlines Group given the rapid growth of the Vietnamese privately owned LCC VietJet. Jetstar Pacific achieved passenger growth of approximately 40% in 2015 and 2016 – and expects similar growth in 2017.
Jetstar Pacific is mainly a domestic airline but has started to focus more on the more profitable international market. Further international expansion is expected in 2017, with several new scheduled and charter flights using the additional A320s. Meanwhile new Australia-Ho Chi Minh flights from sister LCC Jetstar Airways will provide an opportunity to further grow interline and codeshare traffic.
Vietnam Airlines 2017 outlook: slower growth and smaller profits as competition intensifies
Vietnam Airlines has grown rapidly and profitably over the last two years, despite intensifying from its fast-growing local rival VietJet Air. Vietnam Airlines is now only one of four airlines in Southeast Asia with more than 20 million annual passengers.
Passenger traffic has grown by more than 50% since VietJet’s launch at the end of 2011, while the flag carrier has accumulated approximately USD150 million in pre-tax profits. In 2016 Vietnam Airlines achieved 19% growth and record profitability.
However Vietnam Airlines plans to grow at a much slower rate in 2017, and intensifying competition will likely impact profitability. Opportunities for further domestic expansion are becoming more limited as the market becomes more saturated, while international expansion poses more challenges and risks.