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Thai VietJet To Debut In September
26th Jun 2014
The Thai commercial aviation market is about to see another player vying for patronage from local travelers who want to fly on a budget.
Thai VietJet Air, the local Thai subsidiary of Vietnam's largest low-cost carrier, VietJet Air, will soon make a market debut in the domestic market with the launch of its commercial operations in September.
Its launch has been anticipated since it was formed exactly a year ago by VietJet Air and its Thai partner, Kannithi Aviation.
The new airline has already applied for an operator's certificate from Thailand's Civil Aviation Department and is now waiting for approval which they (airline officials) hope will take place before the scheduled launch.
The launch was put on hold indefinitely due to the country's volatile political condition since November last year which saw widespread mass actions across Bangkok, where the airline operates its hub. As a result, many foreign governments issued travel advisories for its citizens to postpone any unnecessary travel to Thailand.
Thai VietJet Air has already laid out its business plan which includes route network and strategic marketing scheme. It has an initial staff of 60 employees including 10 pilots and a host of flight crew for its inaugural operations.
It has an initial fleet of two narrow-body A320 aircraft for the planned maiden routes, Bangkok-Chiang Mai and Bangkok-Phuket. More aircraft acquisition, mostly from its mother unit, will follow as soon as it establishes its foothold in the country.
Thai VietJet Air was formed through a joint venture between VietJet Air and Kannithi Aviation in June 2013. Like any joint venture with a foreign-based partner, the local partner, Kannithi Aviation, holds the majority stake (51%) while VietJet Air holds the minority stake (49%).
The entry of Thai VietJet Air in Thailand will usher in more competition in a hotly-contested budget travel market. Currently, Thai AirAsia holds a dominant position in the low-cost travel market in Thailand, followed by Nok Air.
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