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Vietnam's 'bikini airline' Vietjet takes off in public listing | Vietnam's 'bikini airline' Vietjet takes off in public listing |
(about 17 hours later) | |
Vietnam's low-cost carrier Vietjet - known for its occasional bikini PR stunts - has soared the maximum 20% in its trading debut in Ho Chi Minh City. | Vietnam's low-cost carrier Vietjet - known for its occasional bikini PR stunts - has soared the maximum 20% in its trading debut in Ho Chi Minh City. |
The country's first private airline is thought to soon overtake flag carrier Vietnam Airlines in market share. | The country's first private airline is thought to soon overtake flag carrier Vietnam Airlines in market share. |
Investor interest is driven by the growth pace in the domestic airline market, one of the fastest in Asia. | Investor interest is driven by the growth pace in the domestic airline market, one of the fastest in Asia. |
Vietnam has over the past years been slowly opening up to international investment. | Vietnam has over the past years been slowly opening up to international investment. |
VietJet currently operates about 60 routes both domestically and internationally, and hopes to have a fleet of 200 aircraft by 2023. | VietJet currently operates about 60 routes both domestically and internationally, and hopes to have a fleet of 200 aircraft by 2023. |
The budget airline is another story of a booming Asian low-cost carrier managing to clock exceptional growth in its first years since taking to the sky. | The budget airline is another story of a booming Asian low-cost carrier managing to clock exceptional growth in its first years since taking to the sky. |
The airline launched its first commercial flights only in December 2011 but, thanks to a rapidly growing middle class, has jumped to become the country's second-largest airline, almost head to head with flag carrier Vietnam Airlines. | The airline launched its first commercial flights only in December 2011 but, thanks to a rapidly growing middle class, has jumped to become the country's second-largest airline, almost head to head with flag carrier Vietnam Airlines. |
Both carriers have about 40% of market share. But if Vietjet's past growth is anything to go by, it is set to claim the top spot in no time. | Both carriers have about 40% of market share. But if Vietjet's past growth is anything to go by, it is set to claim the top spot in no time. |
While most analysts agree that the domestic market will continue to show strong growth, there is caution over whether Vietjet will be able to replicate that success abroad. | While most analysts agree that the domestic market will continue to show strong growth, there is caution over whether Vietjet will be able to replicate that success abroad. |
"There's no doubt that they are the dominant low-cost carrier in Vietnam," explains aviation analyst Greg Waldron of FlightGlobal. "The question is whether they can really expand that model overseas." | "There's no doubt that they are the dominant low-cost carrier in Vietnam," explains aviation analyst Greg Waldron of FlightGlobal. "The question is whether they can really expand that model overseas." |
"These business models are not like McDonald's, where you can just replicate the model elsewhere," he explains. | "These business models are not like McDonald's, where you can just replicate the model elsewhere," he explains. |
"With airlines, it's a lot more challenging: if they go internationally, this would add a huge amount of complexity to their business model. Long-haul flights would again be a completely different game." | "With airlines, it's a lot more challenging: if they go internationally, this would add a huge amount of complexity to their business model. Long-haul flights would again be a completely different game." |
Aside from its impressive growth rates, the airline is also known for its somewhat controversial PR stunts. | Aside from its impressive growth rates, the airline is also known for its somewhat controversial PR stunts. |
In the past, the airline has made occasional headlines with having its stewardesses serving the aisles wearing little more than a bikini as uniform. | |
"They've been clever about their marketing," says Mr Waldron. "This gave them huge publicity all over the world." | "They've been clever about their marketing," says Mr Waldron. "This gave them huge publicity all over the world." |
There's little doubt it garnered global coverage. In case it strikes you as somewhat inappropriate, however, Vietnamese authorities agree. | There's little doubt it garnered global coverage. In case it strikes you as somewhat inappropriate, however, Vietnamese authorities agree. |
In at least one of the instances, Vietjet was fined for hiring models for an on-board bikini show. | In at least one of the instances, Vietjet was fined for hiring models for an on-board bikini show. |
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