VietJet Air surpasses Vietnam Airlines
One week after its stock market launch, the market capitalization of VietJet Air has surpassed that of the national market leader Vietnam Airlines.
The Vietnamese low-cost carrier has been founded in 2011, and is now worth $1.3 billion. Forecasts predict that its market share of domestic flights will soon outpace the established competitor Vietnam Airlines.
In various figures, the gap between the two competitors has almost closed. Initially, half of VietJet´s flights were delayed, while today this number decreased to 16 %, compared to 15% of Vietnam Airlines. In addition, 41% of Vietnamese domestic flights are being operated by VietJet Air, while Vietnam Airlines is in front by only 1%.
In the categories of customer satisfaction and price, VietJet Air is already one step ahead of Vietnam Airlines. For example, tickets from Hanoi to Ho Chi Minh City are sold for as low as 600,000 VND (about $26) in the cheapest fare. This is even cheaper than a train ticket on the same route. One of the important factors of the airline´s rocketing success are the innovative marketing campaigns led by the CEO Nguyen Thi Phuong Thao, the only Vietnamese on Forbes´ list of the world´s 100 most powerful women.
For the future of her airline, Ms. Thao has ambitious plans. VietJet Air aims to double its current 23 international connections within a few years. For this purpose, the airline has ordered 20 Airbus A321 and 100 Boeing planes. The total order value accounts for about $ 15 billion.
Sources: 1, 2