Vietjet gains great profits from ancillary revenue

September 23, 2019 | 10:39
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The privately-owned new age airline in Vietnam is looking to become one of the top carriers for ancillary revenue.
vietjet gains great profits from ancillary revenue
The popular new-age airline Vietjet gained major achievements in its ancillary revenue

Vietjet has gained major successes in its ancillary (revenue from non-ticket sources) business thus far, ranking among the top dozen airlines in the world. Revenue of passenger transport in the first half of 2019 stood at VND1.89 trillion ($82.1 million), an increase of 17 per cent on-year. Alongside that, ancillary revenue of passenger transport reached VND5.43 trillion ($230 million), an

increase of 43 per cent on-year, mainly thanks to the growth of international passenger transportation. The proportion of ancillary revenue in total air transport revenue was 27 per cent.

The 2019 CarTrawler Ancillary Revenue Yearbook, which comprises statistics from more than 100 airlines’ audited financial statements, revealed that Vietjet is ranked 12th in terms of ancillary revenue to total air transport revenue ratio.

According to the sustainable development model of low-cost carriers, ancillary revenue is a decisive factor in the success of a carrier when its profit margin reaches over 90 per cent.

Aiming to expand its service ecosystem and continue on a path of sustainable development, Vietjet has planned to provide ground services for itself at Noi Bai International Airport in Hanoi from next year. It also uses the latest e-commerce technologies to offer various products and services for consumers. These will bring benefits to both customers and the airline, including improvement of service quality and ancillary revenue.

Currently, Vietjet operates around 400 flights daily, carrying more than 80 million passengers to date, with 129 routes covering destinations across Vietnam and international destinations such as Japan, Hong Kong, Singapore, South Korea, China, Thailand, Malaysia, Indonesia, and India.

Vietjet is a fully-fledged member of International Air Transport Association, with an IATA Operational Safety Audit certificate. The carrier was named Best Ultra Low-Cost Airline 2018-2019 and awarded the highest ranking for safety in 2018 and 2019 by the world’s only safety and product rating website, AirlineRatings. Vietjet was also listed as one of the globe’s 50 best airlines for healthy financing and operations by Airfinance Journal in 2018.

Besides bringing the dream of flying to millions of customers, Vietjet vows to continue paying special attention to the community in the form of meaningful charity, cultural, sporting, and entertainment activities, which bring better values for all.

By Duc Hanh

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