VietJet step over Jetstar Pacific

While Jetstar Pacific has focused on fleet renewal this year, VietJet Air has planned network expansions, resulting in the airline becoming Vietnam’s largest low-cost carrier by year’s end.

The Center for Asia Pacific Aviation (CAPA) said that VietJet is also set to overtake rival Jetstar Pacific in becoming the first Vietnamese LCC to operate international services.

VietJet may launch services on the Ho Chi Minh - Bangkok route early next year, while it will increase its domestic network from five to nine destinations in November 2012.

The new domestic routes include services from Ho Chi Minh to Hue, Phu Quoc and Vinh and Hanoi to Dalat.

Jetstar Pacific currently accounts for about 14 percent of capacity in Vietnam’s domestic market while VietJet accounts for 9 percent, according to CAPA.

Once VietJet expands its domestic operations, CAPA has predicted an increase in domestic market capacity to 16 percent, while Jetstar Pacific is set to drop to 13 percent.

VietJet only launched services in late December 2011 but has expanded rapidly.
Earlier this year, Jetstar Pacific sold a 70 percent stake in its company to Vietnam Airlines, who had expressed interest in launching its own LCC subsidiary.

Sourced: etravelblackboardasia