A cracking pace

It is the rising star of Asian aviation and Vietjet is not finished yet. Its regional and international expansion is surging as a constant flow of new jets arrive at the airline bolstering its fleet. Best of all, the balance sheet is in the black, reports associate editor and chief correspondent, Tom Ballantyne.

February 1st 2025

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If there was one factor reflecting the global ambitions of Vietnam’s leading airline, LCC Vietjet, it was the January launch of its first flight to the U.S., an A330 service from Ho Chi Minh City to Miami, Florida by way of Anchorage in Alaska. Read More »

It was not just a flight, declared Vietnamese media. It was a bold step forward for the pioneering Asian airline. On board were Vietjet’s senior leadership team, who were to meet strategic partners from around the world at a “Friends of Vietnam Summit” in Florida’s Palm Beach. Their other high profile engagement was being hosted by then president elect, Donald Trump, at his Mar-a-Lago compound.

It was a significant milestone for Vietjet, underscoring its commitment to strategic cooperation with the U.S. The airline has become a key pillar of U.S.-Vietnam economic collaboration with its trade partnerships contributing to job creation for U.S. workers. Vietjet has strategic agreements valued at near US$50 billion with aerospace OEMs Boeing, GE, CFM, Pratt & Whitney and Honeywell as well as contracts under negotiation of approximately US$14 billion.

It also collaborates with U.S. headquartered global technology companies Microsoft, Amazon Web Services, Apple and Google.

At press time, it was in discussions with SpaceX and several other providers of in-flight internet solutions to support its aircraft and to drive high-tech workforce development in an era of semiconductor technology, artificial intelligence, blockchain and Big Data.

It adds up to a phenomenal financial commitment by an airline only launched in late 2011.

“The strategic partnerships Vietjet has forged in the U.S. reflect our deep commitment to strengthening the economic bridge between the two nations,” Madam Nguyen thi Phuong Thao, billionaire co-founder of Vietjet and now chair of its Board of Directors, said.

“We are proud of Vietjet’s growth that not only directly contributes to job creation for American workers and advances technological progress but promotes Vietnam’s economic development.”

The U.S. is not the LCC’s only target for expansion. This year the airline announced it aims to maintain its pioneering position connecting Vietnam with the world with an expanding international flight network, contributing to trade, investment, cultural and people-to-people exchanges between Vietnam and countries in and beyond the region.

Vietjet’s post-pandemic re-boot is continuing in 2025. Last year it booked record revenues of US$2.8 billion, delivered an after tax profit $51.6 million and met its target of receiving 10 new aircraft. It has an expanding fleet of 94 jets that are operating with an average load factor of 87% and a technical reliability rate of 99.72%.

In 2024, it flew more than 25.9 million passengers aboard 137,000 flights on 44 domestic and 101 international routes; the highest volume of passengers of all Vietnamese airlines.

International expansion has been rapid. Since entering the Australian market in April 2023 with inaugural flights from Ho Chi Minh City to Sydney and Melbourne, it has expanded its “Down Under” network to Brisbane and Perth. It has strengthened its Australian footprint with direct flights from Hanoi to Sydney and Melbourne, becoming the largest Vietnamese carrier flying between Vietnam and Australia. Later in 2024, it began direct Da Nang-Ahmedabad and Hanoi to Kuala Lumpur and increased frequencies on several routes, particularly to South Korea and Japan.

Its pace of network expansion is unrelenting. In addition to starting its U.S. flights, it has announced new direct schedules to Hyderabad, Bangalore, Beijing and Guangzhou, deepening connections with two high potential markets.

It also has signed a cooperation agreement with Emirates Airline to build connectivity between Vietnam and Dubai.

Its expansion is underpinned by a significant order book. To date its fleet is A320-200 (17), A321-200 (6), A321neo (30), A321XLR (34) and A330-300 (7). On order from Airbus are more A321neo (98), A321XLR (20) and A330-900 (20). It also has committed to 737 MAX8 (66), 737 MAX10 (106) and 737 MAX200 (28) with Boeing.

In 2017, during an official visit to Vietnam, first term president Donald Trump witnessed the signing by Vietjet for 100 B737 MAXs, an order later doubled. This year, the first year of President Trump’s second term, Boeing will deliver the first 14 of those ordered airplanes to Vietjet.

In another surprising development, the LCC leased two COMAC C909s (formerly the ARJ21) regional jets in response to higher travel demand during the Lunar New Year holiday peak in late January.

Orient Aviation reported Vietjet had received a “very attractive financial offer” from COMAC that was “too good to resist”. The deal was announced after Vietnam’s deputy prime minister, Tran Hong Ha, instructed the transport ministry to review rules that prevented China’s COMAC airplanes from operating in Vietnam after his meeting with COMAC board director and former China Southern Airlines boss, Tan Wangeng. The jets will fly Hanoi-Con Dao Island as well as connecting Con Dao Islands with Ho Chi Minh City.

It was important for Vietjet to secure the aircraft to service the islands as the only other airline flying to Con Dao was Bamboo Airlines, which has stopped flying the route.

Vietjet commands more than 40% of Vietnam’s domestic airline market, making it more or less equal to full-service rival, Vietnam Airlines.

The LCC has been pioneering and maintaining research and development activities towards the goals of emission reduction, including investing in new aviation technology solutions to ensure its highest standards of safety and quality.

Vietjet and CFM International have reaffirmed their commitment for orders of more than 400 LEAP-1B engines and technical maintenance services for the airline’s narrow-body aircraft, a contract valued at US$8 billion.

In October last year Vietjet operated its first flights using Sustainable Aviation Fuel (SAF) from Vietnam to Melbourne and Seoul. The SAF was produced by Petrolimex Aviation.

Training also is high on its agenda. It has signed an agreement with Czech flight training school, F Air, to provide flight training for Vietjet cadet pilots at the airline’s Aviation Academy’s (VJAA) Multi-Crew Pilot License (MPL) program in the Czech Republic.

Vietjet said the training program adheres to European Aviation Safety Agency (EASA) standards and will develop highly skilled pilots for Vietnam’s aviation industry and the broader region.

“Partnering with a leading European flight training centre enables Vietjet to secure a steady pipeline of internationally certified aviation professionals,” VJAA director, Tran Huu Quoc. “This collaboration marks a strategic milestone in Vietjet’s journey to global connectivity, addressing the airline’s growing needs and sustainable development.”

VietJet said human resources remain a core focus in the company’s development strategy and the broader aviation industry. As an IATA training partner in Vietnam, VJAA has conducted numerous pilot recruitment drives, aligning with the industry’s long-term growth outlook. VJAA trains and graduates more than 200 pilots a year in its ab initio training and type-rating programs.

Vietjet’s journey has not been without turbulence. In its early years it faced criticism for its provocative marketing tactics, flight delays and shortfalls in customer service. But it has developed into a multi-award-winning carrier, winning several global awards for its high service and safety standards. In 2024, the world’s leading financial magazine, International Finance named it “Best Low-Cost Airline in Southeast Asia” and “Best Finance-Management-Aviation-Vietnam”. It also was a dual winner at the World Travel Awards 2024, named “Asia’s Leading Airline for Customer Experience” and “Asia’s Leading Airline Rewards Programme”.

For Vietjet, as it continues to induct new generation aircraft into its fleet and expand its international network, there is little doubt the future is more than bright, indeed, it seems the sky is the limit.