Vietjet on its final approach to Singapore

HANOI - Significant expansion of Vietnam low cost airline Vietjet on international markets is expected this year and in 2015 as the carrier is due to integrate more Airbus A320 in its fleet and due to the fast approaching ASEAN Economic Community.

After Bangkok which has been flown since last year, Vietjet is now ready to fly to Singapore in May. Since March 20, booking have been opened for the route Ho Chi Minh City-Singapore which is due to begin on May 23 and be flown on a daily basis. To celebrate the new service, special fares were offered to grab at US$ 2! Several more international destinations in Southeast and North Asia are expected to be added by the end of 2014, targeting services to Kunming in China, Seoul and Siem Reap in Cambodia.

The airline is also looking to launch its first services in Thailand with its new subsidiary Thai Vietjet. The Thai affiliate will begin operations with three aircraft Airbus A320 with potentially launching its first flights by September. In the longer term, Vietjet has also the ambition to venture overseas and add some wide-body aircraft to its fleet for services to Australia and potentially to Europe.

According to experts, low cost offer to and from Vietnam has potential: the penetration rate of LCA on Vietnam’s international routes is less than 15% while LCA in other countries of Southeast Asia have already achieved market shares of 25% up to 50% in Malaysia.

Vietjet Air also continues to grow home with a target of reaching a domestic market share of 50% by 2015/2016. For 2014, Vietjet’s aim on domestic routes is to reach a share of 35% of all available seats. Last year, the carrier’s market share in seat was approximately 26%.

Newest routes to be served by the airline is Ho Chi Minh City-Dalat as well as Hanoi-Phu Quoc Island. The airline is expected to receive seven more aircraft Airbus A320 this year to take its total fleet to 17 aircraft.

Sourced: TravelDailyNews