VietJetAir (VJ, Hanoi Noi Bai International) is considering establishing joint ventures with airlines in South Korea, Japan and Taiwan Managing Director Luu Duc Khanh has disclosed. Speaking to Reuters, Luu said the north Asian market holds more appeal for the Vietnamese budget carrier as it is relatively less competitive.
"Southeast Asia is a little bit crowded, but still on our radar," he said. "We want to capture loyalty domestically then expand regionally and eventually, long haul."
Earlier this year, Luu told CAPA that VietJetAir would focus on consolidating its position within the buoyant Vietnamese domestic market before venturing into the regional market which is dominated by AirAsia (AK, Kuala Lumpur International) and Tigerair (Singapore Changi).
In contrast, Thai VietJetAir (VZ, Bangkok Suvarnabhumi), the carrier's first international venture, plans to ply three to five international routes, including China and India, when it launches later next month. The start-up, which had planned to launch scheduled services in late March, has undergone a shakeup in its ownership with former majority shareholder Somphong Sooksanguan, moving to divest himself and Kan Air (KND, Chiang Mai) parent, Kannithi Aviation, of their combined 51% stake in the carrier.
Founded in 2010, VietJetAir is expanding rapidly with ninety-three A320 Family jets on order from Airbus (AIB, Toulouse Blagnac). It plans to fund its growth with bond issues and bank loans in addition to an IPO due later this year. According to Luu, the carrier has already hired consultants to help advise on whether to pursue a local or an international listing so as to maximize exposure.
