Market value of Vietnam’s “bikini airline” VietJet overtakes main rival

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The market capitalisation of Vietnam’s budget airline VietJet surpassed that of state-owned Vietnam Airlines on March 6 only a week after it was listed. The carrier, which caught international attention with bikini-clad dancing flight attendants when it was launched in 2011, has become known in Vietnam as the “bikini airline” and female crew do still wear them, but only on selected flights.

VietJet’s market share is expected to overtake that of Vietnam Airlines this year, a feat it has achieved by tapping into a fast-growing economy and a young population starting to travel more.

At a share price of 137,400 dong ($6.03) each on March 6, VietJet is valued at $1.8 billion, ahead of Vietnam Airlines at $1.7 billion. On its first trading day, VietJet was valued at $1.4 billion and its rival, which listed in January, at $2.1 billion.

Brokers say the price of shares has been driven by growth in the Vietnamese market and a relatively small free-float in VietJet shares for retail investors.

Nguyen Van Dung, manager of the securities consulting department at Saigon Securities, said there is still much potential in VietJet shares.

“The VietJet story just begins so investors still have a lot of expectation on its shares,” he said.

The airline operates around 60 routes both domestically and internationally and hopes to have a fleet of 200 planes by 2023.

 

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Reading Time: 1 minute

The market capitalisation of Vietnam’s budget airline VietJet surpassed that of state-owned Vietnam Airlines on March 6 only a week after it was listed. The carrier, which caught international attention with bikini-clad dancing flight attendants when it was launched in 2011, has become known in Vietnam as the “bikini airline” and female crew do still wear them, but only on selected flights.

Reading Time: 1 minute

The market capitalisation of Vietnam’s budget airline VietJet surpassed that of state-owned Vietnam Airlines on March 6 only a week after it was listed. The carrier, which caught international attention with bikini-clad dancing flight attendants when it was launched in 2011, has become known in Vietnam as the “bikini airline” and female crew do still wear them, but only on selected flights.

VietJet’s market share is expected to overtake that of Vietnam Airlines this year, a feat it has achieved by tapping into a fast-growing economy and a young population starting to travel more.

At a share price of 137,400 dong ($6.03) each on March 6, VietJet is valued at $1.8 billion, ahead of Vietnam Airlines at $1.7 billion. On its first trading day, VietJet was valued at $1.4 billion and its rival, which listed in January, at $2.1 billion.

Brokers say the price of shares has been driven by growth in the Vietnamese market and a relatively small free-float in VietJet shares for retail investors.

Nguyen Van Dung, manager of the securities consulting department at Saigon Securities, said there is still much potential in VietJet shares.

“The VietJet story just begins so investors still have a lot of expectation on its shares,” he said.

The airline operates around 60 routes both domestically and internationally and hopes to have a fleet of 200 planes by 2023.

 

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