The Hanoi – Tokyo route will operate daily return flights between Noi Bai and Narita international airports with a flight time of around six hours per leg on a new and modern aircraft.
Within five years after being operated by Vietnam Airlines, Jetstar Pacific has never competed with VietJet Air and it also broke loss records even though its revenue has grown in line with the overall trend of the market.
It is possible that foreign companies will exit from emerging markets like Vietnam to return to their countries, surely affecting its economy which is greatly depending on FDI contribution, according to Nguyen Thi Phuong Thao, CEO of VietJet Air.
The majority of airlines operating expenses are fuel costs, which has increased 41 percent since the beginning of the year and it is predicted to continue increasing in the near future.
Oil prices have approached $70 a barrel and Vietjet Air will have to adjust its profit plan in case they exceed this threshold.
Bamboo Airways may pose a risk of competition with Vietnam Airlines or Vietjet Air; however, this prospect will only happen as early as 2019.
Vietjet Air has recently signed a strategic cooperation agreement worth $6.5 billion with Safran - CFM and a $800 million - financing agreement with GECAS France.
Vietjet Air's reputation has been severely damaged by the "Changzhou bikini scandal" regarding the reception of the U23 Vietnam football team after the 2018 AFC U-23 Asian Cup final.
