VietJet Air COMPANY BACKGROUND VietJet Air is an international new-aged airline based in Hanoi, Vietnam. It is the first
Posted: Fri May 20, 2022 5:55 am
VietJet Air
COMPANY BACKGROUND
VietJet Air is an international new-aged airline based in Hanoi,
Vietnam. It is the first privately owned airline to be established
in Vietnam. The airline’s goal is to make air transport more
popular in Vietnam, the region and worldwide. True to its motto
“Enjoy Flying!”, the company’s mission is to achieve customer
satisfaction by providing outstanding services with a friendly
smile.
With a fleet size of 70 airplanes and over 108 domestic and
international destinations, VietJet Air has become the largest
private airline to offer domestic services in Vietnam. The
airline’s first flight was in 2011. By 2019, it has carried its
more than 70th millionth passenger, easily living up to its core
values of providing safety, happiness, affordable prices, and
punctuality to all its customers.
VISION
To become a global airline group with an extensive regional and
worldwide flight network, providing not only airline services but
also consumer services across advanced e-commerce platforms; a
trusted and highly prestigious brand in the eyes of travellers all
over the world.
MISSION
PERSPECTIVES AND STRATEGIES
BUSINESS MODEL
VietJet is based on the low-cost airline business model with
specific features such as point-to-point flight, focusing on
operating short-haul routes with high frequency, focusing on cost
control and web-based distribution channel. To create a difference
in the quality of products and services provided to customers,
VietJet continuously makes innovation and has succeeded in building
a New Age Airline model: low cost but with superior service quality
to meet 4.0 industrial standard and serve the needs of diverse
customers.
VALUE PROPOSITIONS
VietJet is keen on its brand positioning as a New Age Airline:
offering competitive fares with products and services of
outstanding quality, demonstrating core values: Safety – Fun and
Friendly - Affordable price - Punctuality. VietJet’s mission is to
make air travel become the popular means of transportation in
Vietnam and in the world, and bring innovation to aviation
services.
KEY ACTIVITIES
Provision of passenger transport services. VietJet is always a
pioneer in developing new domestic and international routes, a wide
network to the regions of South-East Asia and North-East Asia. The
aviation services have shown a strong annual growth rate and is the
core services as prescribed in the airline’s orientational plan
from the first day of establishment until now.
KEY RESOURCES
Aircraft: New, modern, and young fleet is one of VietJet’s
competitive advantages that differentiate our business model from
others. Staff: A total of 5,092 qualified, outstanding,
experienced, young, active, and enthusiastic employees. Advanced
technology: VietJet currently uses advanced software solutions for
flight management and operation management such as AMOS, AIMS,
AirFase, SFCO2, Intellysis, etc. The Company also built a platform
for e-commerce and will continue to invest in developing ERP
solutions for corporate administration and operation under the
“E-Company” model.
COST STRUCTURE
As a low-cost carrier, cost control is always an important goal
to create competitive advantages against other competitors in the
industry. Major expenses for VietJet are fuel, aircraft rental,
flight operation, ground handling, maintenance and technical
expenses, accounting for a large proportion of the Company’s cost
structure. VietJet’s Cost per Available Seat-Kilometer (CASK) is
currently the best in class, capable of competing with well-known
airlines in regional and global markets.
DISTRIBUTION CHANNELS
The distribution system includes agents and general sale agents
located both within the country and abroad. Online channels
(websites, mobile booking application, etc.) are key channels that
show the highest growth rate and take the largest proportion of
revenue in VietJet’s sales channels.
REVENUE STREAM
VietJet’s major stream of revenue comes from passenger
transportation, charter flights and aircraft wet lease, air freight
and ancillary activities. Ancillary revenue is generated from
luggage services, seat selection, hot meal services, duty-free
goods, and inflight advertising. Ancillary revenue with good profit
margin is seen as one of the major sources of revenue in the next
stages of development. VietJet also has strategies to provide
passengers with diverse in-flight services in order to increase
ancillary revenue per passenger and increase the proportion of
ancillary revenue in total annual revenue.
CUSTOMER SEGMENTS
By absolute advantage of air travel, VietJet has successfully
attracted new customer groups from other types of transportation
(bus, rail, etc.). 30 per cent of VietJet’s passengers is
first-time air travellers
Analyze the question bellow:
Question 4 35 pts COVID-19 has huge influence on air transport business, forcing many airlines to restructure their company and transfer to the lean system. Write a short essay covering the following issues:
COMPANY BACKGROUND
VietJet Air is an international new-aged airline based in Hanoi,
Vietnam. It is the first privately owned airline to be established
in Vietnam. The airline’s goal is to make air transport more
popular in Vietnam, the region and worldwide. True to its motto
“Enjoy Flying!”, the company’s mission is to achieve customer
satisfaction by providing outstanding services with a friendly
smile.
With a fleet size of 70 airplanes and over 108 domestic and
international destinations, VietJet Air has become the largest
private airline to offer domestic services in Vietnam. The
airline’s first flight was in 2011. By 2019, it has carried its
more than 70th millionth passenger, easily living up to its core
values of providing safety, happiness, affordable prices, and
punctuality to all its customers.
VISION
To become a global airline group with an extensive regional and
worldwide flight network, providing not only airline services but
also consumer services across advanced e-commerce platforms; a
trusted and highly prestigious brand in the eyes of travellers all
over the world.
MISSION
PERSPECTIVES AND STRATEGIES
BUSINESS MODEL
VietJet is based on the low-cost airline business model with
specific features such as point-to-point flight, focusing on
operating short-haul routes with high frequency, focusing on cost
control and web-based distribution channel. To create a difference
in the quality of products and services provided to customers,
VietJet continuously makes innovation and has succeeded in building
a New Age Airline model: low cost but with superior service quality
to meet 4.0 industrial standard and serve the needs of diverse
customers.
VALUE PROPOSITIONS
VietJet is keen on its brand positioning as a New Age Airline:
offering competitive fares with products and services of
outstanding quality, demonstrating core values: Safety – Fun and
Friendly - Affordable price - Punctuality. VietJet’s mission is to
make air travel become the popular means of transportation in
Vietnam and in the world, and bring innovation to aviation
services.
KEY ACTIVITIES
Provision of passenger transport services. VietJet is always a
pioneer in developing new domestic and international routes, a wide
network to the regions of South-East Asia and North-East Asia. The
aviation services have shown a strong annual growth rate and is the
core services as prescribed in the airline’s orientational plan
from the first day of establishment until now.
KEY RESOURCES
Aircraft: New, modern, and young fleet is one of VietJet’s
competitive advantages that differentiate our business model from
others. Staff: A total of 5,092 qualified, outstanding,
experienced, young, active, and enthusiastic employees. Advanced
technology: VietJet currently uses advanced software solutions for
flight management and operation management such as AMOS, AIMS,
AirFase, SFCO2, Intellysis, etc. The Company also built a platform
for e-commerce and will continue to invest in developing ERP
solutions for corporate administration and operation under the
“E-Company” model.
COST STRUCTURE
As a low-cost carrier, cost control is always an important goal
to create competitive advantages against other competitors in the
industry. Major expenses for VietJet are fuel, aircraft rental,
flight operation, ground handling, maintenance and technical
expenses, accounting for a large proportion of the Company’s cost
structure. VietJet’s Cost per Available Seat-Kilometer (CASK) is
currently the best in class, capable of competing with well-known
airlines in regional and global markets.
DISTRIBUTION CHANNELS
The distribution system includes agents and general sale agents
located both within the country and abroad. Online channels
(websites, mobile booking application, etc.) are key channels that
show the highest growth rate and take the largest proportion of
revenue in VietJet’s sales channels.
REVENUE STREAM
VietJet’s major stream of revenue comes from passenger
transportation, charter flights and aircraft wet lease, air freight
and ancillary activities. Ancillary revenue is generated from
luggage services, seat selection, hot meal services, duty-free
goods, and inflight advertising. Ancillary revenue with good profit
margin is seen as one of the major sources of revenue in the next
stages of development. VietJet also has strategies to provide
passengers with diverse in-flight services in order to increase
ancillary revenue per passenger and increase the proportion of
ancillary revenue in total annual revenue.
CUSTOMER SEGMENTS
By absolute advantage of air travel, VietJet has successfully
attracted new customer groups from other types of transportation
(bus, rail, etc.). 30 per cent of VietJet’s passengers is
first-time air travellers
- Vietjet Air Company Background Vietjet Air Is An International New Aged Airline Based In Hanoi Vietnam It Is The First 1 (5.43 KiB) Viewed 59 times
Question 4 35 pts COVID-19 has huge influence on air transport business, forcing many airlines to restructure their company and transfer to the lean system. Write a short essay covering the following issues: