VietJet aims to fly high on IPO boost

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VietJet staffVietnam’s only privately-owned airline, VietJet, wants nothing less than to become the “Emirates of Asia” after its stock listing planned for the second quarter this year. Up to 30 per cent of the shares could possibly be sold to foreign partners, the maximum level permitted by the Vietnamese government.

The budget carrier, known for its sexy ads with bikini-clad flight attendants, plans to build a global route network and challenge AirAsia as top budget airline in Asia. As for the proceeds, Bloomberg reports the airline is seeking a valuation of at least $1 billion for the initial stock sale. That would make VietJet a more valuable company than AirAsia, Garuda Indonesia or Thai Airways.

VietJet’s CEO Nguyen Thi Phuong Thao expressed her vision to transform the airline into ‘Emirates of Asia,'”, referring to Emirates airlines which was launched in 1985 in Dubai with $10 million in start-up capital and since has grown to one of the world’s largest long-haul airlines flying to more than 150 destinations on five continents.

VietJet photo shooting
Shooting for the famous VietJet calendar…

VietJet, founded in 2007 by Thao, currently has 42 aircraft in operation and serves 23 domestic and 10 international destinations. It mainly competes with national carrier Vietnam Airlines its regional unit Vietnam Air Services, or Vasco, and wants to add international routes to cities in South Korea, Malaysia, China and Japan this year.

For its expansion, VietJet plans to add a dozen planes annually to its fleet of 42 planes at year-end to reach a fleet size of around 100 by 2020. The airline carried 9.3 million passengers in 2015, an increase of 66 per cent over the previous year. Revenue more than tripled last year to $488 million while net income rose to almost $45 million, according to the company. The airline expects revenue to double this year and passenger capacity to reach 15 million.

VietJet’s current major shareholders are Sovico Holdings, a private conglomerate which has investment projects in many different business areas, from finance, real estate, transport, tourism and energy, as well as Ho Chi Minh Development Bank, or HDBank, one of the largest commercial banks in Vietnam.

VietJet calendar
…and the outcome.
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Reading Time: 2 minutes

Vietnam’s only privately-owned airline, VietJet, wants nothing less than to become the “Emirates of Asia” after its stock listing planned for the second quarter this year. Up to 30 per cent of the shares could possibly be sold to foreign partners, the maximum level permitted by the Vietnamese government.

Reading Time: 2 minutes

VietJet staffVietnam’s only privately-owned airline, VietJet, wants nothing less than to become the “Emirates of Asia” after its stock listing planned for the second quarter this year. Up to 30 per cent of the shares could possibly be sold to foreign partners, the maximum level permitted by the Vietnamese government.

The budget carrier, known for its sexy ads with bikini-clad flight attendants, plans to build a global route network and challenge AirAsia as top budget airline in Asia. As for the proceeds, Bloomberg reports the airline is seeking a valuation of at least $1 billion for the initial stock sale. That would make VietJet a more valuable company than AirAsia, Garuda Indonesia or Thai Airways.

VietJet’s CEO Nguyen Thi Phuong Thao expressed her vision to transform the airline into ‘Emirates of Asia,'”, referring to Emirates airlines which was launched in 1985 in Dubai with $10 million in start-up capital and since has grown to one of the world’s largest long-haul airlines flying to more than 150 destinations on five continents.

VietJet photo shooting
Shooting for the famous VietJet calendar…

VietJet, founded in 2007 by Thao, currently has 42 aircraft in operation and serves 23 domestic and 10 international destinations. It mainly competes with national carrier Vietnam Airlines its regional unit Vietnam Air Services, or Vasco, and wants to add international routes to cities in South Korea, Malaysia, China and Japan this year.

For its expansion, VietJet plans to add a dozen planes annually to its fleet of 42 planes at year-end to reach a fleet size of around 100 by 2020. The airline carried 9.3 million passengers in 2015, an increase of 66 per cent over the previous year. Revenue more than tripled last year to $488 million while net income rose to almost $45 million, according to the company. The airline expects revenue to double this year and passenger capacity to reach 15 million.

VietJet’s current major shareholders are Sovico Holdings, a private conglomerate which has investment projects in many different business areas, from finance, real estate, transport, tourism and energy, as well as Ho Chi Minh Development Bank, or HDBank, one of the largest commercial banks in Vietnam.

VietJet calendar
…and the outcome.
Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid