VietJetAir (VJ, Hanoi Noi Bai International) Managing Director Luu Duc Khanh has revealed more details about his airline's planned low-cost, long-haul operations saying that both Airbus (AIB, Toulouse Blagnac) and Boeing (BOE, Washington National) widebody proposals had been studied with flights due to launch before 2017.
Speaking at CAPA’s 2014 Airline Fleet & Finance Summit, Luu said the LCC would seek to exploit the country's growing tourism market and the Vietnamese diaspora with flights to select destinations in Australia, Russia, Western Europe and North America.
In terms of financing for the ambitious project, Luu said that despite the carrier's growing profitability, additional funds would be sought from an Initial Public Offering likely due in 2015.
Operational since late 2011, the LCC in February this year finalized a deal with Airbus for twenty A320ceos and forty-two A320neos with delivery of the first ceo due in the last quarter of this year. With a current fleet of twelve A320s, VietJetAir's network covers Vietnam extensively with regional services offered to Singapore Changi and Bangkok Suvarnabhumi.
Competition from local rival and Vietnam Airlines (VN, Hanoi Noi Bai International) subsidiary, Jetstar Pacific (Ho Chi Minh City), is expected to intensify after it announced plans to resume its international expansion this year. Jetstar has remained relatively dormant in these last two years but has now outlined plans to expand into the North Asian market - China in particular.
International competition is also expected from the likes of Thai AirAsia X (XJ, Bangkok Suvarnabhumi) and NokScoot (Bangkok Don Mueang).
