By Charlotte Seet
Vietjet sees potential for 20% revenue increase in 2021
On Tuesday, Vietjet held the ITS 2021 Annual General Meeting of Shareholders to review its business results in 2020, a year to overcome the pandemic, and to seek approval of the airline’s 2020 audit report and plan for development 2021.
Following the positive forecasts for 2021, Vietjet oriented its 2021 business plan by delivering a “Back to the Sky” message, focusing on domestic growth while awaiting the recovery of the international market in July 2021.
However, given how the COVID-19 pandemic has evolved with recent outbreaks of many variants, the airline’s shareholders have passed a different resolution to redefine a more cautious business plan for 2021.
In particular, Vietjet is targeting 2021 targets for air transport revenue of VND 15.5 trillion (US $ 670 million) and consolidated revenue of VND 21.9 trillion (US $ 945 million). ), achieving annual growth of 20%.
These objectives will be mainly driven by an exponential increase in freight revenues, new services in air transport, personnel training and aircraft maintenance, and they include several investments in projects and financings, allowing the airline to ” be ready for its recovery phase.
The low-cost Vietnamese carrier will continue to revolve around its customer-centric strategy while striving to innovate and be creative, as it is expected to digitize all available services and operating protocols, by developing its activities to improve its productivity and quality of service.
In addition, Vietjet has also forecast its passenger occupancy factor to reach 80% while its punctuality rises to over 90%, and it hopes to serve up to 15 million passengers on its flight network.
In addition to additional investments in the Vietjet Aviation Academy (VJAA) for the construction of infrastructure and equipment, the airline is also investing in a technology park to accommodate the arrival of aviation experts and activities as part of the efforts to make Vietjet one of the best airlines in the world.
Speaking at the annual meeting of shareholders, Vietjet Chairman and CEO Nguyen Thi Phuong Thao said, “As a brighter future awaits us, we will work hard and relentlessly to bring it closer. “
During the event, the airline’s shareholders also voted on the profit allocation proposal in application of resolution 01-2020 of the 2020 General Meeting of Shareholders and the 2021 profit allocation plan.
As a result, the Board of Directors (CA) declared a 25% stock dividend in order to focus financial resources on the air transport business.
In order to ensure sufficient resources for a safe and efficient return of Vietjet, the shareholders have agreed to let the board of directors decide on a plan to increase the share capital through a private placement of shares at a price. maximum of 15% of the share capital.
Not only that, but the BOD will also consider a US $ 300 million international bond offering in 2021-2022 to allow Vietjet to strengthen its financial capacity when air transport markets rebound.
The shareholders also adopted an employee shareholding plan to issue up to 10 million shares, which should stimulate innovation and creativity, encouraging the spirit of work and employee loyalty for the future of development. from Vietjet.
In his address at the event, the Director General of the Vietnam Civil Aviation Authority Dinh Viet Thang praised Vietjet’s tremendous efforts to remove barriers and maintain operations during the pandemic, especially by meeting strict COVID-19 prevention regulations.
He also said the company had played an active role in many government campaigns, including the repatriation of Vietnamese stranded abroad during the pandemic and the airlift of disease prevention equipment.
During the meeting, Deputy Minister of Transport Le Anh Tuan also acknowledged that Vietjet has made a fair share of the development of the air cargo sector in Vietnam.
“The Ministry of Transport highly appreciates Vietjet’s dynamic management approach. Before the pandemic, Vietjet was the most efficient airline in terms of productivity with its largest 2019 profits in the aviation industry. We believe Vietjet can stay on this path once the pandemic is over, ”Le said.
Regarding the 2020 audit report, the turnover of the parent company amounted to 15.203 billion VND (656 million USD) while the air transport recorded a loss of 1,453 billion VND (62.7 million USD). million USD), relatively lower than initially forecast.
The consolidated turnover was declared at 18.220 billion VND (787 million US $) and the consolidated profit reached 68 billion VND (2.9 million US $), making Vietjet one of the few companies airlines in the world to successfully keep its core business afloat while retaining jobs for its employees and making a profit in 2020.
Vietjet also opened eight new domestic routes in 2020, carrying more than 15 million passengers with a 80% passenger fill rate while the punctuality rate remained at a high global level of 90%.
Proactively implementing new approaches to develop the cargo sector, Vietjet was the first airline in Vietnam authorized to deploy passenger cabin cargo operations and has since delivered over 60,000 tonnes of cargo across nearly 1 200 flights in 2020.
It airlifted goods to the Americas and Europe, which brought additional income to the parent company.
2020 also marked the first year of operation of the Vietjet Ground Service Center at Noi Bai International Airport in Hanoi. The center has enabled the airline to significantly improve its quality of service while reducing its outsourcing costs.
Extending training for employees, the VJAA offered more than 47,300 hours of training throughout 2020.
Vietjet joined forces with Toulouse-based aircraft manufacturer Airbus to install the second flight simulator (SIM) to dramatically improve its pilot training capability, making VJAA the most advanced aviation training and practice center in the region.
By focusing intensely on efficient operations and performance, as well as financial management and even safety – through the IATA Digital Pass trial – Vietjet has made steady progress in its recovery phase and seeks to continue to emerge from it. the pandemic, even stronger than before.