Fast-growing Thai Vietjet pivots back to international services
Thai Vietjet is planning to shift its center of gravity from domestic to international operations, more than tripling its total international ASKs from 25% to 85% over the next five years.
The ultra-LCC is also preparing to receive its first of 50 Boeing 737 MAX 8s in July and will have an all-Boeing fleet by 2024.
Speaking at Routes Asia 2023, Thai Vietjet CEO Woranate Laprabang said that before the pandemic, the carrier primarily focused on charter flights to China. It quickly realigned to operate domestic destinations through 2020-22.
Woranate joined the carrier in July 2020, having previous experience at Thai Airways, where he helped set up Thai Airways LCC subsidiary Thai Smile.
In 2022, Thai Vietjet saw revenue double, and its domestic market share ranking climbed from sixth to second. Woranate expects 2023 revenue to again double over 2022’s income.
By the end of 2023, total international ASKs will account for 35% of capacity. Woranate explained that by flying internationally, Thai Vietjet can increase its average daily aircraft utilization rate by around four hours, reducing unit costs.
China will again become the primary market focus in 2023, but Thai Vietjet is also targeting destinations within the Association of Southeast Asia Nations (ASEAN)—initially focusing on Indochina—as well as India and North Asia.
Thai Vietjet will launch 3X-weekly Chiang Mai-Osaka service from Feb. 16, which will be the first nonstop from Chiang Mai to Japan in some 15 years.
Thai Vietjet currently operates 11 Airbus A320-family aircraft, which will expand to 18, all sub-leased from Vietnam’s Vietjet Air. The 50 737-8s bound for Thai Vietjet are also part of Vietjet’s 200-aircraft order. They will provide better range and fuel efficiency, enabling new destinations like Perth and northern Japan, Woranate said.
Speaking to Routes Daily directly, Woranate added that Thai Vietjet shares sales and marketing resources with Vietjet Air and has benefited from the strong Vietjet brand but emphasized that each airline is independently managed financially and operationally.
– Chen Chuanren
