VietJet Air has established itself as Vietnam’s leading low-cost carrier, known for its distinctive red and yellow livery and commitment to making air travel accessible to all Vietnamese. From its initial concept to becoming a major player in Southeast Asian aviation, VietJet has transformed travel patterns across the region, connecting previously underserved markets while maintaining a relentless focus on operational efficiency and innovative marketing.
Entrepreneurial Beginnings: The History of VietJet Air
VietJet Aviation Joint Stock Company, commonly known as VietJet Air or simply VietJet, began as a pioneering concept in Vietnamese aviation. The airline was established in 2007, becoming the first privately owned airline to be granted approval to operate by the Vietnamese Ministry of Finance in November of that year. This marked a significant milestone in a market that had traditionally been dominated by state-owned carriers.
Though founded in 2007, VietJet’s journey to the skies was fraught with challenges and delays. Various factors, including the global financial crisis and regulatory hurdles, repeatedly pushed back the airline’s planned launch date from late 2008 to 2009, then to 2010, and finally to late 2011. One particularly notable setback occurred when Malaysian budget carrier AirAsia announced plans in February 2010 to purchase a 30% stake in VietJet through a joint venture agreement. However, this partnership fell through in October 2011 when AirAsia rescinded its plans, citing “a failure to obtain Vietnamese regulatory approvals.”
Despite these obstacles, VietJet persevered, and its maiden flight finally took off on December 25, 2011, connecting Ho Chi Minh City to Hanoi. This Christmas Day launch marked the beginning of what would become one of Southeast Asia’s aviation success stories. Initially operating with just three Airbus A320 aircraft, the airline began serving domestic routes between major Vietnamese cities including Ho Chi Minh City, Hanoi, and Da Nang.
VietJet’s early strategy focused on building a strong domestic network before expanding internationally. The carrier quickly gained traction in the Vietnamese market by offering competitive fares that made air travel accessible to a broader segment of the population, many of whom had previously relied on long-distance buses or trains for intercity travel.
A significant milestone in VietJet’s history came on February 9, 2013, when the airline launched its first international flight between Ho Chi Minh City and Bangkok. This expansion marked VietJet as the first Vietnamese private airline to enter the international market, setting the stage for its subsequent growth across Asia.
The airline continued to strengthen its position by placing substantial aircraft orders to support its ambitious growth plans. In February 2014, at the Singapore Airshow, VietJet firmed up orders with Airbus for 60 A320 aircraft at a list price of $6.4 billion. This followed a previously signed Memorandum of Understanding for 92 planes in the A320 family. Additional orders came in June 2015 at the Paris Air Show, when VietJet ordered six more Airbus A321 single-aisle jets worth $682 million at list prices, followed by a further 30 later that year at the Dubai Airshow.
In May 2016, during a state visit by U.S. President Barack Obama to Vietnam, VietJet announced a significant order for 200 Boeing 737 MAX aircraft, marking a major diversification of its fleet beyond Airbus products and signaling the carrier’s ambitious expansion plans. However, the global grounding of the 737 MAX fleet following two fatal crashes would later impact the timeline for these deliveries.
VietJet reached another milestone on February 28, 2017, when it completed its initial public offering (IPO) on the Ho Chi Minh City Stock Exchange (HOSE). The shares were offered at an initial price of ?90,000 (approximately US$4.02) per share and immediately rose by 20%, the maximum allowed for newly listed companies. The airline raised $167 million from the listing, making it the biggest IPO on the Vietnamese stock market at that time and accounting for 1.5% of HOSE’s capitalization.
In recent years, VietJet has continued its expansion strategy with a particular focus on widebody operations to support longer-haul flights. In July 2024, at the Farnborough International Airshow, VietJet finalized a deal worth $7.4 billion for 20 Airbus A330-900 aircraft, marking the airline’s first-ever widebody order. These aircraft will replace the carrier’s current fleet of seven leased Airbus A330-300 aircraft while providing capacity for network expansion to more distant destinations.
The airline has also announced significant network growth, with new routes to major Chinese cities planned for early 2025, including services between Ho Chi Minh City and Beijing Daxing, Hanoi and Guangzhou, and Ho Chi Minh City and Guangzhou, commencing on March 30, 2025. Further expansion will include a route between Hanoi and Beijing Daxing beginning on April 1, 2025, and an inaugural service to Auckland, New Zealand, starting in September 2025.
Throughout its history, VietJet has maintained a commitment to its low-cost model while progressively expanding its reach from a domestic Vietnamese carrier to a significant regional player with growing long-haul aspirations. The airline’s journey from concept to its current position has been characterized by resilience in the face of challenges, strategic fleet planning, and a focus on making air travel accessible to the growing Vietnamese middle class.
By the Numbers: VietJet Stats
VietJet’s position as Vietnam’s leading low-cost carrier is reflected in impressive operational statistics that demonstrate its scale and impact on regional aviation.
The airline serves approximately 13 countries with routes to 99 destinations as of late 2023. Its network encompasses domestic locations throughout Vietnam and international destinations across Asia, with recent expansion into Australia and plans for service to New Zealand.
VietJet operates a fleet of approximately 88 aircraft, primarily Airbus A320 family planes with the addition of seven Airbus A330-300s for long-haul operations. The fleet consists of 17 Airbus A320-200s, 36 Airbus A321-200s, 11 Airbus A321-200neos, 15 Airbus A321-200NXs, and the aforementioned seven A330-300s, with an average fleet age that varies by aircraft type from 2.3 years for the newest A321NXs to 11.7 years for the A330s.
The airline has substantial outstanding orders, including 20 Airbus A330-900neo widebody aircraft ordered in July 2024, supporting its long-haul expansion strategy. Additionally, VietJet has ordered Boeing 737 MAX aircraft, though delivery timelines have been affected by the global issues surrounding this aircraft type.
VietJet has been recognized for its safety standards, maintaining a seven-star safety rating (the highest possible) since 2018 and ranking seventh among the top 20 safest low-cost carriers globally. This recognition reflects the airline’s commitment to operational excellence despite its low-cost business model.
The carrier offers around 900 flights daily across its extensive network, serving millions of passengers annually. Its presence has significantly contributed to Vietnam’s position as one of the world’s fastest-growing aviation markets, with the International Air Transport Association previously projecting Vietnam to become the world’s third-fastest growing market for international passengers and freight.
VietJet has established itself as a successful public company since its 2017 IPO, which raised $167 million and was the largest on the Vietnamese stock market at that time. The airline’s financial performance has supported its continued fleet expansion and network growth.
Quick Facts About VietJet Air
VietJet Air is headquartered in Ho Chi Minh City, Vietnam, with its main operational bases at Tan Son Nhat International Airport (Ho Chi Minh City) and Noi Bai International Airport (Hanoi). The airline was founded in 2007 and commenced operations on December 25, 2011.
The carrier operates under the IATA code VJ and ICAO code VJC. VietJet was the first privately owned airline to be established in Vietnam, breaking the traditional state monopoly on air transportation in the country.
VietJet is owned by Sovico Holdings, HDBank, other organizational investors, and individual stakeholders. The airline’s CEO and President, Nguyen Thi Phuong Thao, has become one of Vietnam’s most prominent business leaders and one of Asia’s few female airline executives.
The airline’s slogan in Vietnamese is “Bay là thích ngay!” which translates approximately to “Fly is love it right away!” or more colloquially, “Love flying instantly!” This reflects the airline’s mission to make flying enjoyable and accessible to all.
VietJet has gained international attention for its distinctive marketing strategies, including controversial calendar photoshoots featuring models in bikinis, which generated both publicity and criticism. These campaigns aligned with the airline’s unconventional approach to promoting its services in a traditionally conservative market.
The carrier has established a subsidiary, Thai VietJet Air, which operates as a separate entity based in Thailand. Thai VietJet received its air operator’s certificate in November 2014 and commenced operations on March 29, 2015, from its base at Bangkok’s Suvarnabhumi Airport.
VietJet’s Flight Academy in Ho Chi Minh City has been recognized as an official training partner of the International Air Transport Association (IATA), providing aviation training throughout the region. This facility supports the airline’s growth while contributing to aviation workforce development in Southeast Asia.
The airline operates an MRO (Maintenance, Repair, and Overhaul) center in partnership with Lao Airlines at Wattay International Airport in Vientiane, Laos, enhancing its engineering capacity and bringing technical expertise to the developing region.
VietJet has partnered with various international airlines and expanded into joint ventures in other countries, reflecting its ambition to establish a broader regional presence beyond its Vietnamese home market.
Hub Cities: VietJet’s Major Operations
VietJet operates a dual-hub strategy centered on Vietnam’s two largest cities:
Tan Son Nhat International Airport (SGN) in Ho Chi Minh City serves as VietJet’s primary southern hub, handling a significant portion of both domestic and international traffic. As Vietnam’s busiest airport, Tan Son Nhat provides VietJet with access to the country’s commercial capital and most populous urban area.
Noi Bai International Airport (HAN) in Hanoi functions as the airline’s northern hub, offering connectivity throughout northern Vietnam and to international destinations. As the gateway to Vietnam’s capital city, Noi Bai provides VietJet with critical access to government and business travel.
These two main hubs allow VietJet to efficiently serve Vietnam’s elongated geography, which spans over 1,650 kilometers (1,025 miles) from north to south. This geographic characteristic creates natural demand for air travel given the significant distances between major population centers and the country’s limited road and rail infrastructure.
Beyond these primary hubs, VietJet has established focus cities at several other Vietnamese airports:
Da Nang International Airport (DAD) serves as a key tourism gateway in central Vietnam, allowing VietJet to capture leisure traffic to this popular coastal destination. Da Nang’s central location also makes it strategically important for connecting northern and southern Vietnam.
Phu Quoc International Airport (PQC) provides access to Vietnam’s largest island and growing tourism destination. VietJet operates various domestic services to this island, including routes utilizing its widebody A330 aircraft despite the relatively short flight distances.
The airline’s international expansion has focused on key Asian markets, with significant operations to Thailand, Singapore, South Korea, Taiwan, Japan, and more recently, Australia. The carrier has strategically targeted destinations with strong business connections to Vietnam as well as popular tourism routes.
VietJet’s Thai subsidiary, Thai VietJet Air, operates from Suvarnabhumi Airport (BKK) in Bangkok, extending the company’s brand and operational model into Thailand’s competitive aviation market. This subsidiary enhances VietJet’s regional presence and creates opportunities for connecting traffic.
The airline’s network development strategy has capitalized on Vietnam’s favorable geographic position within Asia, allowing it to connect destinations throughout Southeast Asia, Northeast Asia, and increasingly, to Australia and beyond. This network design supports the growing demand for both business and leisure travel within the region.
Fleet and Service
VietJet operates a modern and increasingly diverse fleet designed to serve various market segments while maintaining operational efficiency.
The backbone of VietJet’s fleet consists of Airbus A320 family aircraft:
- Airbus A320-200: 17 aircraft with an average age of 11.5 years
- Airbus A321-200: 36 aircraft with an average age of 7.5 years
- Airbus A321-200neo: 11 aircraft with an average age of 6.2 years
- Airbus A321-200NX: 15 aircraft with an average age of 2.3 years
For long-haul operations, the airline currently utilizes:
- Airbus A330-300: 7 aircraft with an average age of 11.7 years
These A330-300s are configured with 377 seats in two classes: 12 business class seats arranged in a 2-2-2 configuration and 365 economy class seats in a 3-3-3 layout. The business class features recliner seats rather than full-flat beds, reflecting the aircraft’s utilization primarily on medium-haul routes.
VietJet’s fleet is set to evolve significantly with outstanding orders including 20 Airbus A330-900neo aircraft, which will replace the current A330-300s and provide additional capacity for network expansion. The airline has also ordered Boeing 737 MAX aircraft, though deliveries have been affected by the global issues surrounding this aircraft type.
This fleet strategy allows VietJet to efficiently serve both short domestic routes and increasingly longer international services, with the A320 family providing coverage for flights within Southeast Asia and the A330s enabling service to more distant destinations including Australia and, in the future, New Zealand.
As a low-cost carrier, VietJet’s service model focuses on efficiency and unbundled fares:
- Base fares cover only transportation, with additional services available for purchase
- Carry-on bags, checked luggage, seat selection, meals, and other amenities available at extra cost
- Higher-density seating configurations compared to full-service carriers
- Quick turnaround times to maximize aircraft utilization
For longer routes operated by A330 aircraft, VietJet offers a more premium service option with its business class product, though this remains more limited than what might be found on traditional full-service carriers. This dual approach allows the airline to maintain its low-cost positioning while providing suitable options for medium and long-haul routes.
VietJet’s commitment to fleet modernization has enabled it to maintain low operating costs through fuel-efficient aircraft while reducing its environmental impact. The airline’s young fleet, particularly its neo-series Airbus aircraft, delivers improved fuel efficiency compared to older models, supporting both economic and environmental objectives.
Market Evolution and Social Impact
VietJet has played a transformative role in Vietnam’s transportation landscape, fundamentally changing how millions of people travel throughout the country and connecting Vietnam to the wider region.
When VietJet launched operations in 2011, air travel in Vietnam was primarily accessible to the affluent and business travelers, with the majority of the population relying on long-distance buses and trains for intercity transportation. VietJet’s introduction of the low-cost carrier model dramatically reduced airfares, making flying accessible to a much broader segment of the Vietnamese population.
The airline’s emergence coincided with strong economic growth in Vietnam, with millions of citizens entering the middle class and gaining disposable income for travel. VietJet capitalized on this demographic shift, converting many first-time flyers from bus passengers to air travelers by offering competitive fares and convenient schedules.
VietJet’s expansion has been particularly impactful given Vietnam’s challenging geography and infrastructure limitations. With a length of 1,650 kilometers (1,025 miles) from north to south, major cities and tourist destinations are far apart, and road and rail infrastructure is still developing. Air travel provides a vital alternative that significantly reduces journey times across this elongated country.
The airline has contributed significantly to Vietnam’s tourism development by improving accessibility to destinations throughout the country and bringing international visitors to various Vietnamese cities. This enhanced connectivity has supported economic growth in regions beyond the traditional entry points of Hanoi and Ho Chi Minh City.
VietJet’s business model has forced legacy carriers, particularly state-owned Vietnam Airlines, to become more efficient and competitive, ultimately benefiting Vietnamese consumers through lower fares and improved service options across the industry. This competitive pressure has been a key factor in the significant growth of Vietnam’s domestic aviation market.
The airline’s success has created thousands of direct jobs and many more indirect positions in airport services, tourism, and related industries. VietJet’s training programs and career development opportunities have contributed to the professionalization of Vietnam’s aviation workforce.
As a prominent Vietnamese company with international operations, VietJet has enhanced Vietnam’s global business profile and demonstrated the country’s growing economic capabilities. The airline serves as an ambassador for Vietnam’s economic development and increasing integration into regional and global markets.
Operational Excellence and Sustainability
VietJet has distinguished itself through operational initiatives aimed at enhancing efficiency, reliability, and safety despite its low-cost business model.
The airline maintains high safety standards, earning a seven-star safety rating (the highest possible) from AirlineRatings.com since 2018. In 2024, VietJet was ranked seventh among the top 20 safest low-cost carriers globally, demonstrating its commitment to operational excellence regardless of its budget positioning.
VietJet has invested significantly in training infrastructure, developing the VietJet Flight Academy in Ho Chi Minh City, which has been recognized as an official training partner of the International Air Transport Association (IATA). This facility provides comprehensive training for pilots, cabin crew, and engineering personnel, supporting the airline’s growth while contributing to aviation workforce development in Southeast Asia.
The carrier has established maintenance capabilities through partnerships, including an MRO center operated in conjunction with Lao Airlines at Wattay International Airport in Vientiane, Laos. This facility enhances VietJet’s engineering capacity while bringing technical expertise to the developing region, addressing the broader need for MRO services across Southeast Asia.
VietJet achieves high aircraft utilization rates through efficient scheduling and quick turnarounds, maximizing revenue-generating flight hours and spreading fixed costs across more flying time. This operational efficiency is a cornerstone of the airline’s ability to offer low fares while maintaining profitability.
Environmental sustainability has become an increasingly important focus area for VietJet, with initiatives including:
- Fleet modernization with fuel-efficient Airbus neo-series aircraft
- Operational procedures that minimize fuel consumption
- Weight reduction initiatives to improve efficiency
- Optimized flight planning for reduced emissions
The airline’s continuous fleet renewal, particularly the transition to newer generation aircraft, delivers environmental benefits through reduced fuel consumption and lower emissions. The A320neo and A321neo aircraft in VietJet’s fleet offer approximately 15% lower fuel burn compared to previous generation models, while the forthcoming A330-900neo will bring similar efficiency improvements to the carrier’s widebody operations.
Recent Developments and Future Plans
In recent years, VietJet has pursued strategic initiatives for long-term growth despite challenging global market conditions for aviation.
A milestone announcement came in July 2024 at the Farnborough International Airshow, where VietJet finalized a deal worth $7.4 billion for 20 Airbus A330-900 aircraft. This agreement, which followed a signed Memorandum of Understanding at the Singapore Airshow in February 2024, marked the airline’s first-ever order for new widebody aircraft. These A330-900s will replace VietJet’s current fleet of seven leased A330-300s while providing additional capacity for network expansion to more distant destinations.
VietJet continues to expand its network, with several new routes planned for early 2025. Starting March 30, 2025, the airline will add service between Ho Chi Minh City and Beijing Daxing, Hanoi and Guangzhou, and Ho Chi Minh City and Guangzhou. Additional expansion will include a route between Hanoi and Beijing Daxing beginning April 1, 2025. Further, the carrier has announced plans for its first flights to New Zealand, with service to Auckland scheduled to commence in September 2025.
The airline has strengthened its position in the Australian market, operating services to Sydney, Melbourne, and Brisbane from both Hanoi and Ho Chi Minh City. These routes utilize the airline’s A330 aircraft and represent a significant step in VietJet’s long-haul expansion strategy, targeting markets with strong Vietnamese diaspora populations and tourism potential.
VietJet has continued to modernize its narrowbody fleet with progressive deliveries of A321neo and A321NX aircraft, which offer improved efficiency and passenger comfort compared to older models. The airline expects to receive up to 10 new A321neos before the end of 2024, supporting continued network growth and the replacement of older aircraft.
The carrier has enhanced its digital capabilities, improving its mobile application and online services while implementing new technology across customer-facing and operational areas. These digital investments support both improved passenger experience and operational efficiency.
VietJet’s Thai subsidiary, Thai VietJet Air, continues to develop its presence in Thailand’s competitive aviation market, extending the VietJet brand beyond Vietnam and creating opportunities for connecting traffic. This international expansion of the company’s business model demonstrates VietJet’s regional ambitions.
Looking Ahead
As VietJet navigates the evolving aviation landscape, the airline faces both challenges and opportunities that will shape its future trajectory.
VietJet’s position as Vietnam’s leading low-cost carrier provides significant competitive advantages, including strong brand recognition, operational scale, and first-mover status in many markets. However, the airline faces increasing competition from other low-cost carriers in the region, including AirAsia and Jetstar, as well as from full-service carriers expanding their budget offerings.
Vietnam’s aviation market continues to offer substantial growth potential, with relatively low air travel penetration compared to more mature markets and a young, increasingly mobile population. VietJet is well-positioned to capture this growth through its established presence, efficient cost structure, and ongoing fleet expansion.
The airline’s widebody strategy, centered on the A330-900neo order, opens new possibilities for long-haul services beyond VietJet’s traditional regional focus. This fleet capability could enable expansion to destinations in Europe, North America (particularly markets with large Vietnamese diaspora populations), and additional points in Oceania, though such routes would present both opportunities and challenges for VietJet’s low-cost business model.
Infrastructure constraints present ongoing challenges, particularly at Vietnam’s major airports, which have experienced capacity limitations due to rapid growth in air traffic. Planned airport expansions and new facilities will eventually address these constraints, but the transition period may require careful network planning by VietJet to optimize its operations.
Competition in the Vietnamese domestic market remains intense, with Vietnam Airlines, Bamboo Airways, and other carriers all vying for market share. VietJet’s continued focus on operational efficiency and strategic network development will be crucial for maintaining its competitive position.
Environmental considerations will increasingly shape VietJet’s strategy, with growing regulatory pressures and consumer expectations regarding aviation’s carbon footprint. The airline’s fleet modernization provides a foundation for addressing these challenges, but further sustainability initiatives may be necessary as global aviation moves toward more stringent emissions standards.
From its launch as Vietnam’s first private airline to its current position as a major regional carrier with international ambitions, VietJet’s journey demonstrates how innovative business models and clear strategic positioning can transform a market. As it looks to the future with its expanding widebody operations and international network, VietJet seems positioned to continue connecting Vietnam to the world while making air travel accessible to an ever-broader segment of the population.
Keyword: TopAirlines