With its goal on adding another 5 million passengers this year, Vietjet, which currently controls 40% of the domestic market in Vietnam, has taken the lead.
Vietjet, the largest low-cost airline in Vietnam, was fast to seize the opportunity presented by the opening of the Asia-Pacific travel market, but it has already established some extremely lofty objectives for 2023. In order to reach its goal of increasing passenger volume by 25% this year, the airline intends to increase the number of Airbus narrowbody and widebody aircraft in its fleet from 77 to 87.
It appears to be a joyful encounter.
The 2023 General Meeting of Shareholders was held by Vietjet Aviation Joint Stock Company (Vietjet) yesterday in Ho Chi Minh City. During the meeting, the company gave an update on its 2018 performance and laid out its objectives for 2023. As stated in the release, the airline must be pleased with how it is doing its flights:
At the meeting, it was widely acknowledged that Vietjet has persevered through enormous struggles to overcome impediments and ensure growth despite the economy’s general difficulties and the post-pandemic issues faced by the domestic and international aviation industries. The basis for sustainable development in 2023 and beyond has been laid by its ability to maintain a sound balance sheet.
Vietjet became the top domestic carrier in 2022 after carrying 20.5 million passengers, a 283% increase year over year. The airline also ran more than 116,260 flights. With an average passenger load factor of 85%, its domestic market share in 2022 was 40% in Vietnam. The carrier’s audited consolidated revenue increased by 212% year over year to VND40,142 billion, or about $1.71 billion.
With a respectable debt-to-equity ratio of 1:3, Vietjet said that in 2022 it had raised its assets by more than $200 million, bringing its total to $2.91 billion. In 2022, the airline made direct and indirect tax payments of $186.3 million to the State budget.
2023 goals that are ambitious
Vietjet predicted that in 2023, it will operate 139,513 flights and carry 25.7 million passengers, a 25% increase over the previous year. A combined revenue goal of more than VND50,178 billion ($2.14 billion) is being pursued, with an after-tax profit goal of VND1,000 billion ($42.8 million) as a secondary goal.
Vietjet announced it is growing its fleet from 77 to 87 aircraft in order to accommodate that extra five million passengers, including boosting the number of widebody Airbus A330-300s from five to nine this year. According to fleet information provided by ch-aviation.com, the airline’s fleet consists of 18 A320-200s, 36 A321-200s, 18 A321neos, and five A330-300s. Despite the fact that, aside from the A330s, yesterday’s statement did not specify the types being added, the airline has several significant orders recorded by ch-aviation.
According to the statistics, Vietjet has placed orders for 94 A321neo, 20 A321XLR, and one A330-300 Airbus aircraft. Also reported as on order are 50 Boeing 737-8 MAXs and 100 high-capacity 737-8-200 MAXs. We’ll have to wait and see where the extra planes ultimately come from, but Vietjet can also purchase new or used aircraft from lessors or on the open market.
Four goals were established for management to work toward during the conference, which also approved nine proposals on development strategies for 2023:
preserving the market’s lead in terms of passenger throughput and effectiveness
establishing partnerships with aircraft manufacturers Boeing and Airbus to guarantee on-time delivery growing business activities in ground services, training services, and digital business streamlining operational and finance solutions to reduce costs while enhancing efficiency.
The shareholders “expressed optimism and trust on the leadership of the Vietjet Board of Directors and Board of Management to successfully carry out the mission “Pave the sky-Connect the world”” as the meeting came to a successful conclusion.
