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

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

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

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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