Vietnam’s newest air carrier Vietravel Airlines to conduct IPO in 2021

Bien, who disclosed the IPO plan after the inauguration of the Vietnam’s newest air carrier, did not give further information about planned IPO since the company need a huge capital for growing in the pandemic-hit aviation sector.

Vietravel Airlines, which received an operator’s certificate on Dec. 24, plans to conduct its first flight in January and has leased three Airbus SE 321 aircraft. The airline has 200 pilots and flight attendants.

The first flight route will connect from Hue, Hanoi, and Ho Chi Minh City, then expanding the network to Nha Trang, Van Don, Da Nang, Da Lat. Tickets could be sold from early next month. The price will be between Vietjet and Bamboo Airways.

Photo: Ngo Tran Hai An

Vietnam’s fifth carrier aims to have a fleet of 30 aircraft in the next five years and aviation revenue is expected to exceed tourism revenue of the parent company’s revenue in the first five years, Bien said.

The international market that Vietravel Airlines targets is ASEAN countries, specifically Bangkok – Thailand.

If the market is stable, Vietravel Airlines sets a profit target from the second year on, Bien said, adding that pandemic brought the airline advantages since it was easy for it rent good aircraft with prices, recruiting skilled pilots, technicians with low costs.  

The aviation project will take advantage of Vietravel Group's strengths with a network of 40 offices across the country and 6 offices in foreign countries.