VietJetAir (VJ, Hanoi Noi Bai International) managing director Luu Duc Khanh says his carrier is in talks with aircraft manufacturers over the supply of regional jets suitable for use on thin routes to remote locations in Vietnam. Currently, those routes are plied by Vietnam Airlines (VN, Hanoi Noi Bai International) and its subsidiary, VASCO - Vietnam Air Services (0V, Ho Chi Minh City).
According to CAPA, Luu told a media briefing in Singapore last week that his airline has so far held talks with ATR - Avions de Transport Régional, Bombardier Aerospace, and Embraer with an order to be placed by the end of this year should the project go ahead. Late last year, Sukhoi Civil Aircraft also pitched its SSJ 100/95 to management which said it would 'consider' the suitability of the type for its services.
Using a growing fleet of A320-200s, the 4-year old budget carrier currently offers scheduled services between Vietnam's main cities and towns as well as abroad to Bangkok Suvarnabhumi, Seoul Incheon, Siem Reap, Singapore Changi, and Taipei Taoyuan.
The decision to focus on consolidating its position in the buoyant and profitable domestic market comes against the backdrop of growing regional competition from the likes of AirAsia and Tigerair and their respective affiliates. In contrast, the airline's only domestic low-cost competition comes from Jetstar Pacific.
As such, Wuu says the carrier has decided to slow down ambitious expansion plans which include entering the Southeast Asian markets before eventually going longhaul to Australia and the United States.
“It’s better for me to focus on what we are doing best,” Luu said, adding that VietJet will still eventually expand into the long-haul market. “My expectation is three to five years down the line.”
The recent rapid devaluation in the Russian Rouble brought on by the country's economic malaise has also forced the deferment of VietJetAir's entry into the Russian market. Last year, the LCC announced plans to open up Hanoi Noi Bai International to Vladivostok services during the course of this year.
