DALLAS — Today, in 2011, Vietnamese low-cost carrier (LCC) VietJet Air (VJ) finally commenced operations.

The launch date had been pushed back several times, citing various reasons, including weak travel demand and branding issues. Its maiden flight departed Ho Chi Minh City (SGN) bound for Hanoi (HAN).

The airline can trace its history back to November 2007, when it became the first privately owned airline to be approved in the country. Based in HAN with a secondary base in SGN, VJ planned to commence operations in 2008/2009 on domestic routes using either Boeing 737-700s or Airbus A320s. VJ chose the latter to launch flights.

AirAsia Tie-up

A group of local businessmen led by entrepreneur Nguyen Thanh Cong provided the financial backing. The AirAsia Group also announced its intention to purchase a 30% share of VJ in 2010 and planned to brand the carrier VietJet AirAsia.

However, the deal was dropped in October 2011 after the Vietnamese government delayed approving the AirAsia brand's use.

International services were launched in February 2013 between SGN and Bangkok (BKK). Around this time, the airline announced it would create a new joint venture in Thailand. Known as Thai VietJet Air (VZ), operations commenced in March 2015.

Fleet Growth

VJ placed an order for up to 100 Airbus A320-family aircraft in September 2013. The deal covered firm orders for 42 A320neo aircraft plus 14 A320ceos and six A321ceos, plus purchase rights for 30 more. Since then, the airline has ordered additional A320 family aircraft, including the A321XLR.

In May 2016, VJ signed a deal for 100 Boeing 737 MAXs, including the -8, -10, and -200 variants, valued at US$11.3 billion at list prices. The airline ordered a further 100 of the type at the 2018 Farnborough Air Show. The additional deal would make VJ the largest -10 customer in Asia.

On December 25, 2021, VJ's tenth anniversary, the airline received its first Airbus A330 (VN-A811). Its first wide-bodied jet was utilized on the carrier's gradually resuming international network following the COVID-19 pandemic.

A further two -300s joined the fleet, with another four on order.

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Vietjet Air Post Pandemic

VietJet Air has shown strong post-pandemic recovery and expansion, demonstrating significant growth in revenue, passenger numbers, and route network. The airline has focused on international expansion while maintaining a strong domestic presence.

VietJet reported positive financial, operational results in the post-pandemic period:

• Q1 2023: Air transport revenue reached VND12,880 billion, with after-tax profit of VND168 billion, increasing 286% and 320% year-over-year respectively.
• Q3 2023: Separate and consolidated revenues reached approximately $551.38 million and $579.34 million.
• In Q1 2023, VietJet operated 31,300 flights and transported nearly 5.4 million passengers, growing by 57% and 75% year-over-year.
• Q3 2023 saw 36,000 flights and 6.8 million passengers, including 2.3 million international travelers.
• The airline expanded its fleet to 103 aircraft and maintained high seat utilization and technical reliability rates.

VietJet has expanded its route network post-pandemic:

• Launched 10 new routes in Q1 2023 (4 domestic and 6 international).
• Added new international routes to India, Kazakhstan, and Australia.
• Expanded services to Japan, South Korea, and Thailand.
• By Q3 2023, the total route network reached 125, including flights to five major Australian cities.

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