Hanoi-based LCC VietJet, which has grown its fleet from three aircraft when it launched in 2011 to 103 Airbus narrowbodies and widebodies now, is looking to further extend its long-haul network, potentially even going to California if it can acquire the right aircraft.
VietJet board member Chu Viet Cuong, a panelist at the CAPA Asia Aviation Summit in Kuala Lumpur Nov. 2-3, said the privately owned carrier needed at least three or four more Airbus A330s on top of the seven it operates and would particularly like to have A330neos, but acknowledged “it’s not easy to find them” in the current lease market.
“You could reach California with the A330neo. That would be a good future market for VietJet if we had that long-haul aircraft,” Cuong said.
VietJet also operates 94 Airbus A320 family aircraft—a mix of A320 and A321ceos and A321neos—and has more on order, including 30 A321XLR extended range narrowbodies. The airline also has 200 Boeing 737 MAXs on order, the first 50 of which will be delivered to Thai VietJet.
Cuong noted that VietJet, which posted 2023 third quarter revenue of VND14.235 trillion ($579.07 million) and a net profit of VND55 billion, has no problems with financing aircraft.
Cuong said that while bringing in more widebodies adds challenges for an LCC, with flights of eight or nine hr. changing the requirements for pilots, flight attendants and even the ancillary revenue model, it also enables the carrier to enter growth markets. “The most important thing is you can make money, make a profit,” Cuong said.
“We need more and more and more aircraft to grow and to replace older aircraft. VietJet was a small budget carrier; it’s now a big carrier serving 125 cities, including 80 international destinations.” Cuong said growth markets of particular focus included Eastern and Western Europe and Russia, with Frankfurt, Kazakhstan, Moscow and Paris the priorities.
When the China market closed because of the pandemic, VietJet pivoted to India, where it now serves 13 cities, and Australia, where it serves the country’s five largest cities. “That is very good business,” Cuong said.
VietJet recently announced new international routes from Hanoi and Ho Chi Minh City to Cambodia, Indonesia and China that will start in December. Domestically, VietJet will introduce direct service from Ho Chi Minh City to Dien Bien on Dec. 2.
Related Content
