Vietjet foreseen to overtake Vietnam Airlines in domestic market in March

Friday, Jan 08, 2016 11:49

Low-cost Vietjet may surpass national flag carrier Vietnam Airlines as the country's largest domestic carrier by seat capacity in 2016, Centre for Aviation (CAPA) has forecast.

CAPA, an independent aviation market analysis group, said it expected Vietjet's domestic capacity to reach almost 259,000 seats per week in March 2016, which would be a seven per cent increase compared with current levels, and a 73 per cent rise year-on-year.

Based on this prediction, Vietjet would have about a 43 per cent share of the domestic seat capacity, compared with 42 per cent for Vietnam Airlines, and 15 per cent for Vietnam Airlines's subsidiary Jetstar Pacific.

Currently Vietjet has about a 40 per cent share while Vietnam Airlines and Jetstar Pacific has 45 per cent and 15 per cent, respectively.

Vietjet and Vietnam Airlines domestic weekly seat capacity: Sep-2011 to Mar-2016. — Source CAPA

According to CAPA, Vietjet's total seat capacity is currently up 74 per cent year-over-year to touch about 261,000 weekly seats. This includes an 82 per cent increase in the domestic market to touch about 242,000 weekly seats, and a 30 per cent rise in the international market to reach about 19,000 weekly seats.

In 2016, Vietjet is poised to continue adding domestic capacity throughout the year, with a focus on trunk routes, CAPA said in a separate analysis on its website on January 6.

Particularly, on the HCM City – Ha Noi service, Vietjet targets a 35 per cent capacity increase over the next three months, which will also enable it to become the market leader on Viet Nam's largest route, CAPA said.

The budget carrier's share of seat capacity on the service is expected to reach almost 50 per cent in April, from the current 40 percent.

Amid the CAPA's positive forecast, Vietjet said it was planning faster expansion this year, which would result in further domestic market share gains and a larger international network.

With the coming launch of three new domestic routes, connecting Pleiku with Hai Phong and Vinh, and HCM City with Tuy Hoa, the airline has increased the number of its routes to 43.

The Pleiku – Hai Phong route, in which the first flight will depart on January 15, will have four return flights per week on Monday, Wednesday, Friday and Sunday.

Vietjet top 10-bases/stations ranked by weekly seat capacity: 4-Jan-2016 to 10-Jan-2016. — Source: CAPA

The Pleiku – Vinh route, in which the first flight will depart on January 16, will have three return flights per week on Tuesday, Thursday and Saturday.

The HCM City – Tuy Hoa route, in which the first flight will depart on January 20, will have daily flights.

Due to the solding - out on many routes, Vietjet said it will operate 800 more flights than the airline's initial plan during the peak time of forthcoming Tet holiday from January 20 to February 20.

The addition, with 150,000 tickets available, is expected to offer passengers more choices with economical expense for their travel plans

The routes in which flights have been added including HCM City - Hanoi (with 30 round trips per day), HCM City - Da Nang (13 round trips per day), HCM City – Hai Phong (seven round trips per day), HCM City – Vinh (six round trips per day), HCM City – Thanh Hoa (four round trips per day), HCM City – Quy Nhon (three round trips per day), HCM City – Pleiku (two round trips per day), HCM City – Phu Quoc (four round trips per day), HCM City – Nha Trang (four round trips per day), and HCM City - Da Lat (two round trips per day).

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