Viet Nam Travel Airlines Joint Stock Company (Vietnam)

Established in 2019, a year later, the subject - Vietravel Airlines was granted a license to operate in the field of air transportation by the Ministry of Transport of Vietnam. Vietravel Airlines officially operated the first commercial flight connecting from Ho Chi Minh City to Ha Noi City on 25 Jan 2021. By the end of 2022, the first international route was opened to Bangkok City, Thailand.Vietravel Airlines focuses on operating its commercial flights on a fleet of modern narrow-body aircraft Airbus A321/ Boeing 737 or equivalent. Since the first time of implementing commercial flights, within 3 years, the subject has operated the domestic and Asian flight networks (South Korea, Taiwan, Thailand, and Singapore) with a fleet of 6 Airbus A321 aircraft or equivalent and will continue to increase to 12 aircraft in the subsequent years.Based on press information, Vietravel Airlines submitted to the Government for consideration a proposed roadmap to increase total investment capital to VND 8,250 billion. Accordingly, the owners of Vietravel Airlines will contribute an additional VND 700 billion, thereby increasing the total capital contribution of the owners to VND 2,000 billion. In addition to it, the subject also takes advantage of various financial solutions to increase capital during the period. Besides, Vietravel Airlines also estimates that in case the market recovers smoothly and business becomes profitable, by 2030, the company will have about VND 2,200 billion in accumulated undistributed profits. However, the Ministry of Planning and Investment sent an official dispatch and expressed skepticism about the feasibility of this plan.Regarding the proposal to adjust the aircraft fleet, Vietravel Airlines plans to develop a fleet of 25 aircraft from 2021 to 2025 and 50 aircraft from 2026 to 2030. With this plan, the Ministry of Transport also recommends that Vietravel Airlines should carefully research the market and increase the size of its fleet following the growth rate of market demand. Based on statistics, Vietnam's aviation market is estimated to reach nearly 80 million passengers by the end of 2023, approximately the level of transport in 2019. Unfortunately, international transport is still recovering relatively slowly. In 2023, international transport is estimated at 77% of 2019 which could not meet expectations. From 2025 to 2030, the market will grow again by an average of 12%-15% per year to reach 140 million passengers transported by 2028 and 180 million passengers transported by 2030.