Page 31 - Forbes - Asia (October 2019)
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Though cramped, Vietjet’s planes are City’s airport handled 38 million pas-
on average 88% full. “It’s an equation sengers in 2018, well above its annual
with a lot of unknown factors that you capacity of 28 million. The same is true
need to solve—and you need to solve at other major airports in Vietnam,
them all at once,” Thao says of the oper- including Da Nang, Nha Trang, and the
ating challenge she faces. “There are capital, Hanoi.
many questions that you need to have Vietjet is open to investing in
answers to, and if there’s one that you infrastructure to help alleviate these
haven’t answered, you’ll surely fail.” bottlenecks, Thao says. But Vietnam’s
Asia is fertile ground for Vietjet’s government has yet to finalize plans
expansion: the International Air Trans- on whether to expand existing airports
port Association (IATA) estimates that or build new ones. Vietjet also faces
demand for air travel in the Asia-Pa- increasing local competition. As of the
cific, the world’s fastest growing travel end of last year, Vietnam already had
market, will double over the next two 174 registered commercial aircraft op-
decades, representing an additional 2.8 erated by at least four airlines. Earlier
billion passenger journeys every year. this year, Bamboo Airlines became the
Travel in Vietnam is also boom- fifth, launching with just four aircraft.
ing, supported by its rapidly growing And later this year Vingroup, Vietnam’s
middle class. The country’s airports biggest publicly traded company by
handled 106 million passengers in NATURAL-BORN market value, plans to launch its own
2018, up 13% from the previous year. ENTREPRENEUR carrier, Vinpearl Airlines.
That number included 16 million A shortage of pilots poses another
foreign visitors, a 20% jump from the Thao cut her teeth in business in the challenge. According to Boeing, the
previous year. Anticipating further late 1980s after getting two degrees aviation industry will need almost
growth, Vietjet has ordered 386 new at Moscow’s Plekhanov Russian 650,000 new pilots over the next 20
University of Economics. Her first
airplanes, including 200 from Boeing years, with the Asia-Pacific region
business was import-export—import-
and 186 from Airbus. ing computers and other electronics requiring 244,000 and the Middle East
Vietjet’s aggressive expansion is pay- from Asia to Eastern Europe and needing 64,000. “The challenge for the
ing off. The company’s shares have more exporting fertilizer, steel and machin- industry and stakeholders, including
than doubled since its 2017 IPO, giving ery from Eastern Europe to Vietnam, governments and regulatory authori-
it a market value of $3 billion—the through which she reportedly made ties, is to ensure that the infrastructure
her first $1 million. She returned to
second-biggest in Southeast Asia, after is adequate, while regulatory and
Vietnam in the late 1990s with a
Singapore Airlines. And Vietjet says it is resource needs are met to ensure that
Ph.D. in economic management from
in talks with partners across the region Russia’s D. Mendeleev University of countries are able to fully realize the
to expand outside of Vietnam. Chemical Technology, and invested in benefits that aviation can deliver,” says
The mother of three, Thao is banking and property. Tjoeng at IATA.
known by colleagues as a workaholic, Thao is undaunted. In addition to
often working late into the night, ac- packing passengers more densely, she’s
cording to people close to her. been able to boost profits by buying
tion is needed to maximize the capacity planes cheaply in bulk using low-
THAO’S BIGGEST CHALLENGE will of the networks, both in the air and on interest loans, then reselling them to
be negotiating landing slots to Asia’s the ground.” leasing companies. Thao’s goal is to
various destinations, as governments To obtain landing slots to more make history a second time by turning
carefully allocate carriers’ access to international destinations, therefore, Vietjet into the first global airline from
their airports. “ASEAN has a single airlines like Vietjet usually form joint Vietnam. “If we establish an airline in
aviation market initiative but it does ventures with partners in different Europe, we can fly to every country
not include some of the major Asian countries. So far, Vietjet has a joint there,” Thao says. “With our competi-
EHRIN MACKSEY FOR FORBES ASIA Korea, Japan and Australia,” says Albert airplanes in an already very competi- agement capacity, cost and ability to
venture in Thailand that operates eight
aviation markets, like China, India,
tiveness in services, airplanes, man-
provide new services, I am completely
Tjoeng, assistant communications
tive market.
confident that we can compete in oth-
Another stumbling block to Vietjet’s
director at IATA’s Asia-Pacific office in
expansion is infrastructure. In Viet-
Singapore. “The region is composed of
ers’ markets, Europe or the U.S.” Hav-
ing made history once, she has earned
a patchwork of systems—both opera-
nam, most major airports are already
tional and regulatory—and harmoniza-
operating above capacity. Ho Chi Minh
the right to be confident. F
OCTOBER 2019 FORBES ASIA | 29
