Vietjet has its destination set to infinity and beyond as the company steers on with its international expansion plans. This was cast in stone during the General Meeting of Shareholders (GMS) organised by Vietjet Aviation Joint Stock Company (HoSE: VJC) recently, where its upbeat growth plans were announced for the year ahead.
Among the targets set at the GMS include maintaining Vietjet’s leading position in the market in terms of passenger volume and efficiency in Vietnam as well as reaching agreements with aircraft manufacturers Airbus and Boeing to ensure on-time delivery. Other plans include expanding business activities in ground services, training services, digital business and optimising operations and financial solutions to save costs while improving efficiency.
Vietjet also plans to expand its fleet of 87 aircrafts (including 9 Airbus A330 wide-body aircraft) and is expecting to operate 139,513 flights with a total of 25.7 million passengers onboard. Its targeted consolidated revenue for the year 2023 is over VND50,178 billion (approx. RM 9.53 billion) while the after-tax profit is set at VND1,000 billion (approx. RM 189.8 million).
In 2022, Vietjet operated more than 116,261 flights (up by 186% YoY) with 20.5 million passengers on board (up by 283% YoY), leading the domestic market in terms of passenger volume. In addition, Vietjet also brought its widebody Airbus A330 fleet into operation and flew long-range routes between Vietnam and Kazakhstan, India and Australia.
The 2022 audited financial statements showed Vietjet’s consolidated revenue up by 212% YoY, totaling to over VND40,142 billion (approx. RM 7.62 billion). Meanwhile, the worth of its long-term assets appreciated by over US$200 million (approx. RM 891.1 million) and the airline’s total assets stood at VND68,036 billion (approx. RM 12.9 billion) with the debt-to-equity ratio at nearly 1.3 – a good standing in the aviation industry. On the other hand, payment of direct and indirect taxes, fees and charges to the State totaled to VND4,350 billion (approx. RM 825.8 million).
The GMS has also agreed on the goals of making Vietjet a leading airline in digital technology; raising capital to meet the development demand; and prioritizing on asset growth and financial capability improvement, laying out the foundation for a fruitful and sustainable development of the airline.
Thus far, Vietjet has successfully implemented its tablet check-in project that was introduced to help ground staff check-in passengers seamlessly, as well as integrating HD Insurance and Galaxy Pay services to its system to offer passengers greater options. The airline also launched its brand-new loyalty program SkyJoy, that offers endless rewards and an in-flight POS payment system for ancillary purchases.
*based on exchange rate of 1.00000 VND = 0.00019 MYR