VietJet Air is an international new-aged airline based in Hanoi, Vietnam. It is the first privately owned airline to be established in Vietnam. The airline's goal is to make air transport more popular in Vietnam, the region and worldwide. True to its motto "Enjoy Flying!", the company's mission is to achieve customer satisfaction by providing outstanding services with a friendly smile.

With a fleet size of 70 airplanes and over 108 domestic and international destinations, VietJet Air has become the largest private airline to offer domestic services in Vietnam. The airline's first flight was in 2011. By 2019, it has carried its more than 70th millionth passenger, easily living up to its core values of providing safety, happiness, affordable prices, and punctuality to all its customers.

VISION

To become a global airline group with an extensive regional and worldwide flight network, providing not only airline services but also consumer services across advanced e-commerce platforms; a trusted and highly prestigious brand in the eyes of travellers all over the world.

MISSION

To continuously expand our flight network nationally, regionally, and globally;

To bring innovation to airline services;

To make air travel the most popular form of transportation for Vietnamese and all people around the world;

To bring happiness and satisfaction to our customers by offering outstanding services, always with a

friendly smile.

PERSPECTIVES AND STRATEGIES

Firmly expand and develop domestic and international flight network

Strengthen VietJet Air's brand

Complete operating system, regulations process of operation

Focus on cost management, operational efficiency

Maintain high standards for quality, safety, and security

Optimize operation

Diversify sources of funding

Concentrate on human resources

BUSINESS MODEL

VietJet is based on the low-cost airline business model with specific features such as point-to-point flight, focusing on operating short-haul routes with high frequency, focusing on cost control and web-based distribution channel. To create a difference in the quality of products and services provided to customers, VietJet continuously makes innovation and has succeeded in building a New Age Airline model: low cost but with superior service quality to meet 4.0 industrial standard and serve the needs of diverse customers.

VALUE PROPOSITIONS

VietJet is keen on its brand positioning as a New Age Airline: offering competitive fares with products and services of outstanding quality, demonstrating core values: Safety - Fun and Friendly - Affordable price - Punctuality. VietJet's mission is to make air travel become the popular means of transportation in Vietnam and in the world, and bring innovation to aviation services.

KEY ACTIVITIES

Provision of passenger transport services. VietJet is always a pioneer in developing new domestic and international routes, a wide network to the regions of South-East Asia and North-East Asia. The aviation services have shown a strong annual growth rate and is the core services as prescribed in the airline's orientational plan from the first day of establishment until now.

KEY RESOURCES

Aircraft: New, modern, and young fleet is one of VietJet's competitive advantages that differentiate our business model from others. Staff: A total of 5,092 qualified, outstanding, experienced, young, active, and enthusiastic employees. Advanced technology: VietJet currently uses advanced software solutions for flight management and operation management such as AMOS, AIMS, AirFase, SFCO2, Intellysis, etc. The Company also built a platform for e-commerce and will continue to invest in developing ERP solutions for corporate administration and operation under the "E-Company" model.

COST STRUCTURE

As a low-cost carrier, cost control is always an important goal to create competitive advantages against other competitors in the industry. Major expenses for VietJet are fuel, aircraft rental, flight operation, ground handling, maintenance and technical expenses, accounting for a large proportion of the Company's cost structure. VietJet's Cost per Available Seat-Kilometer (CASK) is currently the best in class, capable of competing with well-known airlines in regional and global markets.

DISTRIBUTION CHANNELS

The distribution system includes agents and general sale agents located both within the country and abroad. Online channels (websites, mobile booking application, etc.) are key channels that show the highest growth rate and take the largest proportion of revenue in VietJet's sales channels.

REVENUE STREAM

VietJet's major stream of revenue comes from passenger transportation, charter flights and aircraft wet lease, air freight and ancillary activities. Ancillary revenue is generated from luggage services, seat selection, hot meal services, duty-free goods, and inflight advertising. Ancillary revenue with good profit margin is seen as one of the major sources of revenue in the next stages of development. VietJet also has strategies to provide passengers with diverse in-flight services in order to increase ancillary revenue per passenger and increase the proportion of ancillary revenue in total annual revenue.

CUSTOMER SEGMENTS

By absolute advantage of air travel, VietJet has successfully attracted new customer groups from other types of transportation (bus, rail, etc.). 30 per cent of VietJet's passengers is first-time air travellers

COVID-19 has huge influence on air transport business, forcing many airlines to restructure their company and transfer to the lean system. Please discussing the following issues:

Analyze the benefits and trade-offs when Vietiet

Air shifts from a traditional operation system to a lean system.

Discuss and explain in detail, 2 critical ways/recommendations to help Vietjet Air successfully implement lean operation.

Challenges/Obstacles when Vietjet Air transfer to lean operation and recommendations to deal with them