According to Bangkok Post, Thai Vietjet (TVJ) – a member company of Vietjet airline in Thailand is planning to buy eight more planes this year if the Chinese market reopens in the fourth quarter – the ideal scenario of the aviation industry.
The business also aims to grow revenue by 20-30% over the next five years, calculating that air travel will bounce back from the pandemic low point.
TVJ’s director, Woranate Laprabang, shared that the implementation of the fleet expansion strategy will have to rely on various external factors, especially the reopening of borders in Southeast Asia and East Asia.
At least four planes will be added to the fleet of 16 aircraft, each operating eight to nine hours a day, down from 10 hours a day pre-pandemic.
Mr. Woranate said that if the Chinese market resumes international flights in the fourth quarter, TVJ will need 8 more aircraft because the route in China alone requires at least three aircraft to serve.
Regarding the near-term plan, TVJ will soon launch international flights from Bangkok to neighboring countries such as Phnom Penh on March 16, Ho Chi Minh City on March 17, Da Nang on March 27, Singapore on April 28. Flights from Phuket to Singapore will open on June 2.
He also shared that TVJ is still a small airline with great growth potential. Having a lean fleet of aircraft during the pandemic, businesses have been able to avoid the additional costs of large aircraft not taking off and can be more proactive in making post-pandemic business plans.
To achieve the target of 20 – 30% annual revenue growth, businesses will have to come up with cost-effective solutions to maintain attractive fares as well as monitor the market and competitors to align their plans.
Vietjet Air’s member company will boost international arrivals to 30% this year, from 5% in 2021. TVJ expects the international market to account for 70% of its total customers in the next five years.
Mr. Worante said: “I believe we have overcome the critical period. There will be more improvement in the air travel industry from now on, because everyone wants to travel.”
TVJ had previously forecast 30% growth in 2021, but that target was revised after observing the volatile situation between Russia and Ukraine and the high risk of market deflation.
Mr. Worranate said that Thailand’s Songkran water festival should be allowed to proceed with caution, as it would be a clear signal to the world about the country’s opening up.
Pinyot Pibulsonggram, the commercial director, said that tourism from Thailand to neighboring countries will accelerate from the second quarter as Thais have more foreign travel options, especially short trips.
The airline also expects international flights to have an occupancy rate of up to 80% after receiving positive signals through the number of tickets booked.
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Source: Vietnam Insider