Vietjet considers going public

Vietjet last week received the first among 100 planes from Airbus

Luu Duc Khanh, managing director of Vietjet, revealed last week in Toulouse, France, where the carrier was receiving the first of its order of 100 Airbus A320s and A321s, that the carrier was planning to make its IPO sometime “between 2015 and 2016.”

“The IPO is a major step in our development strategy, and a pivotal part of our plan to form an international aviation alliance,” said Khanh.

Vietjet will be the second airline to implement an IPO in Vietnam, following Vietnam Airlines’ IPO last month where it sold 49 million shares, equivalent to a 3.48 per cent stake.

“The equitisation of Vietnam Airlines is certainly a positive sign of a healthy, open, and transparent aviation market, and it is also a progressive step against monopolisation. Once an investing system is established and the market is operational, investors and customers will be the ultimate beneficiaries,” Khanh said.

With its current fleet of 18 Airbus A320 aircraft, Vietjet now operates 150 flights per day, and has transported eight million passengers in total to date. The airline covers 28 local and international routes across the country and the region.

After three years in operation, Vietjet has rapidly grown and according to the Centre for Aviation – a leading provider of independent aviation market intelligence – Vietjet now holds a 31 per cent market share.

Khanh said Vietjet was not only expanding locally but also internationally.

“Vietjet has fully covered Vietnam, and now the airline is actively expanding its network across the Asia Pacific region. We have successfully established routes from Vietnam to Thailand, Singapore, South Korea, and Taiwan, while preparing to open routes to Cambodia, China, Russia and Japan,” said Khanh.

In order to expand its international network, Vietjet must first expand its fleet. According to Vietjet, the delivery of the first Airbus A320 aircraft last week “marked a major milestone in the development of Vietjet”.

“Receiving this plane highlights how far we have come in three years of operations but it also marks the beginning of the next phase of our development,” said Khanh. “With a solid business plan and a strong fleet, we can better control operational costs and offer even better fares and more flying opportunities to our customers so everyone can ‘Enjoy Flying’.”

The carrier revealed that it will receive two or three planes from Airbus this year, and from 2015 onwards Airbus will deliver 6 to 12 planes annually until the order of 100 planes is complete.

John Leahy, CEO in charge of customers at Airbus claimed that the delivery of the first plane in the deal “signals the start of an exciting expansion plan that will see the carrier acquire up to 100 new A320 Family aircraft in the coming years.”

“Vietjet is a rising star in the Southeast Asian low cost market,” said Leahy.