Competition in Aviation Sector Forces VietJet to Launch New Routes
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Competition in Aviation Sector Forces VietJet to Launch New Routes 

Last updated on September 9th, 2020

Nguyen Thi Phuong Thao, the Chief Executive of VietJet, the most economical airline of Vietnam announced on November 14 the future plans of the firm. As stated by Nguyen, VietJet will launch new route to the Middle East, Australia and Eastern Europe with the 20 long-range Airbus A321XLR narrow body planes that they ordered in October.

On the side lines of the CAPA Asia Aviation & Corporate Travel Summit, Nguyen said, “When we receive the airplanes with the longer range, then we can serve up to 60 per cent of the global population.”

The Centre for Asia Pacific Aviation quoted Thao who expressed carrier plans to add 10 international routes every year. As per reports, the firm will order nearly 15 aircrafts and convert five on-order A321neos to the A321XLR. The A321XLRs will be delivered from 2023.

The A321XLR is capable of flying as far as Australia and Russia from Vietnam with its range of up to 4,700nm (8,700km).

As of now, VietJet flies only 66 international and 40 domestic routes. The budget friendly airline runs 385 flights daily within Vietnam to places like South Korea, Taiwan, Japan, Singapore, mainland China, Myanmar, Thailand and Malaysia.

Earlier in February, VietJet had planned to purchase wide body jets capable of non-stop US flights. Nguyen stated that the airline wanted to be sure about the launch of any operations with new aircrafts that can be done profitably.

The Airbus A321XLR narrow-bodied aircraft is the longest-range single-aisle aircraft in the world. Even though there are multiple aircrafts within the range but sources reveal it is more profitable to operate over these long distances.

The aviation sector of the Southeast Asian nation has been experiencing heightened competition as the region has become a popular tourist destination. In January 2019, Bamboo Airways by FLC Group started its maiden commercial flight to become the fifth Vietnamese airline to achieve it. Also, the largest firm of Vietnam, VinGroup is looking forward to getting a new airline in 2020. Vietravel is also seeking to initiate an airline in the coming year.

Speaking of competition in the aviation sector, the national flag carrier Vietnam Airlines will begin a new air route linking Macau and Hanoi on December 15, 2019. In order to meet the existing demands, the airlines will operate one flight per day till demand rises. As announced by the airlines, the flights will take off at Noi Bai International Airport at 19:45 and depart at 23:50 from Macau on Mondays, Wednesdays, Fridays and Sundays.

Early in November, Vietnam Airlines launched new routes connecting Hanoi/Ho Chi Minh City with Shenzhen City, China with the first flights planned for November 27 and November 28.

Despite facing competition, VietJet Air was performing well till the first half of 2019. As reported by the firm, the consolidated profit before tax rose 11 percent to D2.4 trillion. The air transport revenue of VietJet surged 22 percent to D20.1 trillion as RPKs rose 22 percent.

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