LCC Subsidiary VietJet Thai Starts Operations

Vietnamese low-cost carrier (LCC) VietJet Air's first subsidiary, Thai VietJet Air, will begin operations with a Bangkok-Phuket, Thailand schedule on March 29 using an Airbus A320-200. The airline originally planned to launch with flights from Bangkok's Suvarnabhumi International, but it has opted instead for the cheaper Don Mueang LCC airport.

Using four A320-200s, the new subsidiary plans to extend services to Krabi and Udon Thani in Thailand, and Hanoi and Ho Chi Minh in Vietnam later this year.

The new venture recently saw key Thai investor Somphong Sooksanguan, president of Thai regional carrier Kan Air, sell out of some 41% of his holding in the carrier. Somphong cited differences of opinion with the VietJet parent's policies as the reason for diluting his holding to 10%, with the possibility of selling out completely. Unnamed Thai investors have bought his equity.

Thai VietJet plans to expand its operations to China, India, Malaysia, Myanmar, Singapore and South Korea, pending approvals from the Thai Department of Civil Aviation (DCA). Although the LCC was granted a Thai air operator's certificate (AOC) last November, it has taken several months to gain route approvals from the relevant authorities.

VietJet Air, which currently operates an all-Airbus fleet of 22 A320-200s across Southeast Asia, also took delivery in Vietnam of its first of seven Airbus A321s last week, marking Airbus's 9,000th delivery.

ATW

Photo:Airbus