Công Ty Cổ Phần Hàng Không Vietjet.pdf

General introduction Dinh district, Ha Noi city Year of the establishment 01/01/2007 Source: VNR500, 2022 The first private airline in Vietnam to use the new generation of low-cost aviat

REPORT Requirement GROUP ASSIGNMENT

Lecture: Nguyễn Thị Thanh Nhàn COURSE : MICROECONOMICS - ECO111

Group Members: 5

1 Nguyễn Ngọc Hân - SS170648

2 Nguyễn Thị Ngọc Hân - CS171399

3 Nguyễn Hoàng Thông - SS170494

4 Lê Xuân Tuấn Nhật - SS160005

5 Thái Thị Anh Thư - SS170014

Table of contents

1 Introduction 3

2 Body 4

2.1 Total asset, total capital, total revenue and total employee 4

2.2 Organisation structure 6

2.3 Business sectors (Primary sector // Secondary sector // Tertiary sector) 8

2.4 Demand and Supply 9

2.5 Shortage or surplus 9

2.6 Revenue, Cost, Profit 10

2.7 Competitors 10

2.8 Market structure 11

2.9 Strategies and applications 11

3 Conclusion 12

4 References 13

Case study: CÔNG TY CỔ PHẦN HÀNG KHÔNG VIETJET

Website:http://www.vietjetair.com

1 Introduction

Table 1 General introduction

Dinh district, Ha Noi city

Year of the establishment 01/01/2007

(Source: VNR500, 2022)

The first private airline in Vietnam to use the new generation of low-cost aviation models and offer a wide range of services is VietJet Aviation Joint Stock Company (Vietjet Aviation JSC), doing business as VietJet Air A service offering users a variety of options was started in January 2007 The airline uses commercial technology applications to meet its clients' needs for goods and services in addition to air transportation With an average age of 3.3 years, Vietjet's fleet of modern A320 and A321 planes currently serves over 30 destinations in the region, including Thailand, Singapore, Malaysia, Myanmar, Taiwan, Korea, China, and Japan Vietjet Airline, with tax code 0102325399 and stock code VJC

on the stock exchange Vietjet's head office is at 302/3 Kim Ma street, Ngoc Khanh ward,

Ba Dinh district, Hanoi city As the 57th largest corporation by 2021 according to the list

of 500 largest enterprises in Vietnam (according to VNR500)

2 Body

2.1 Total asset, total capital, total revenue and total employee

Assets are all resources that a business owns and from which economic advantages can be gained They include all gross investments, cash and equivalents, receivables, and other assets Vietjet's total assets reached more than 45,197 billion VND in 2020, a decrease of about 3,662 billion VND from 2019 (48,859 billion VND), or 7% Assets and capital are inextricably linked, manifested in the capital that forms assets This demonstrates that total capital is equal to total assets and equal VND 45,197 billion In which the liabilities total 30,218 billion VND and the equity total 14,987 billion VND Although the situation with covid - 19 is convoluted, most other airlines are losing money, yet Vietjet is the sole profitable airline at the moment Vietjet's after-tax profit would be VND 69 billion by the end of 2020 (Source: the financial report, 2020 ) Beside, Vietjet has consistently prioritized human resource development At this time, the total employees is 5,468 people, increase 792 individuals from 2019, or an increase of 8%, become one of the airlines that does not lay off personnel throughout the 2020 epidemic season to secure business Table 1.1

( Source : Audited Financial Report 2020 )

Table 1.2 Table 1.3

( Source : Audited Financial Report 2020 )

Table 1.4

( Source : Audited Financial Report 2020 )

Table 1.5

( Source : Annual report 2021 )

2.2 Organisation structure

Vietjet Air company is organized and operated according to the model as followed: General Meeting of Shareholders, Board of Directors, Supervisory Board and Chief Executive Officer/ Managing Director and Board of Management including Vice Presidents and Chief Accountant Three legal representatives include: Chairman of the Board of Directors, Chief Executive Officer and Managing Director

In the organizational structure, the person with a high position is the Chairman of the Board of Directors, Mrs Nguyen Thanh Ha and there are 6 members of the Board of Directors including: Madame Nguyen Thi Phuong Thao, Dr Nguyen Thanh Hung, Mr Dinh Viet Phuong, Mr Luu Duc Khanh, Mr Chu Viet Cuong, Mr Donal Joseph Boylan Besides that members of The Board of Management includes one Managing Director, one Chief Executive Officer, eight Vice Presidents and Chief Accountant And members of the supervisory board consists of three members, who were appointed by the General Meeting

of Shareholders and as well as others make up the board of organization structure of company Moreover , the organization structure of Vietject Air Company has 7 subsidiaries and 2 affiliated

( Source : Annual Report 2020)

2.3 Business sectors (Primary sector // Secondary sector // Tertiary sector)

Vietjet Air is a company that mainly deals in passenger and cargo transportation services

by air and has successfully built a closed supply chain of aviation services In addition, Vietjet knows how to take advantage of technological innovation and apply e-commerce technology to supply consumer demand for goods and services

The main activity of the company is air transportation, which has been the core service segment of the company since the early days of its establishment This is the first airline company in Vietnam to operate under the new generation airline model, which is cost-effective & flexible and provides a variety of services for customers to choose from

In addition, Vietjet Air is also a manufacturer that cooperates with Airbus and Boeing on contracts through great commercial values and many incentives As an aircraft leasing company, always providing flight rental services for domestic and international travel agencies Vietjet always creates favorable conditions and looks for investment opportunities to always provide good ground services at the airport, repair services and specialized training in air transport

2.4 Demand and Supply

Demand is the number of goods and services that consumers need to buy in a given period, corresponding to a given price and income The supply of a good tells us the quantity of a good that producers are willing to supply to the market and sell relative to prices, production possibilities, and the cost of production Specifically, in the period before the Covid-19 epidemic occurred Tourism has become immobile because people have limited movement, so Vietjet has encountered a serious lack of passengers As a result, customer demand decreases, leading to greater supply than demand To stimulate demand, Vietjet implemented measures to reduce airfares to limit losses However, when the Covid-19 epidemic occurred strongly around the world, to ensure effective epidemic prevention, flights were forced to limit the number of passengers and the distance When supply decreases, demand is greater than supply This is the main reason why airfares during this period are pushed up Thereby, we can conclude that in the real market, there is a close relationship between supply demand, and price

2.5 Shortage or surplus

In the context of the complicated developments of the pandemic, which has greatly affected the aviation industry: the flight ban, the blockade order, the fear of the people about the pandemic are the main reasons Viet Jet Air is a Vietnamese airline also affected by the pandemic, the number of passengers plummeting, causing a serious shortage of demand while supply exceeded demand After the covid-19 pandemic ended, the flight ban, the blockade order was eased along with the addition of vaccines for all ages, the fear of disease was also eliminated, the demand for air travel increased Strong (Increase in passenger arrivals by 103,000 in January 2022 Source: Civil Aviation Authority of Vietnam) Creates a shortfall in the provision of air travel services Viet Jet Air has exploited this opportunity, with low cost and good service in the price range, Viet Jet has attracted consumers thereby creating a lot of surplus value for businesses.According to financial statements In the first quarter of 2022, Vietjet announced that, compared to the same period in 2021, the airline recorded a growth of 113% in pre-tax profit thanks to the rapid recovery of passenger transport business and continued expansion of the cargo transportation business, with revenue growth in the first quarter of

2022 was 76% and 94% respectively

2.6 Revenue, Cost, Profit

Though the harsh challenges that Vietnamese airlines have faced in 2021 continued to suffer setbacks due to the COVID-19 pandemic, it has showed strong recovery signals came to Vietnamese airlines as revenue and profit growththanks to the nationwide vaccination campaign and the strict implementation of disease prevention regulations to guarantee safe operations and protect the health of the passengers and flight crew In the fourth quarter of 2021, Vietjet recorded a in comparison with the same period last year decreasing air transport revenue at almost 2.79 trillion VND The airline, however, gained

a consolidated revenue at nearly 13 trillion VND in 2021 with a consolidated after-tax profit at 100 billion VND – an increase of 46 percent from the previous year In 2021, Vietjet has operated nearly 42,000 flights across its network with more than 5.4 million passengers onboard The airline has reported revenue of 2.95 trillion VND in cargo transport, achieving fast growth with cargo revenue in particular rocketing by over 200 percent year on year Vietjet also optimises operating costs by flight hours, reduces charter fees, and receives support from the Government to reduce 50% of landing and take-off costs, and to reduce 50% of environmental protection tax on jet fuel until the end

of the year 2022, reduce the cost of ports and ground services to the minimum level in accordance with the State's regulations to support the aviation industry In general, while the core business segments were affected by the epidemic, Vietjet promoted the freight segment with the growth of revenue growth in goods increasing sharply by over 200% over the same period, reaching VND 2,954 billion

2.7 Competitors

The aviation industry has benefited from low maintenance costs due to its new fleet of aircraft Thanks to a bold, fast and modern development strategy and facilities, Vietjet's aviation industry has made great strides Quality air service is not only a product of the aviation industry but also a criterion for evaluating the quality of transportation Low-cost airline Vietjet is a typical unit of our country with high quality and professionalism in providing aviation services As a result, customers voted as "Airline with the best transportation service in Vietnam" Vietjet Air uses low prices as a unique and competitive marketing strategy to draw clients This can also be considered as a competitive advantage

of Vietjet Air over other competitors such as Vietnam Airlines, Bamboo Airways, Pacific Airlines, Vietjet holds 42.2% of the transportation market share (Annual Report 2020)

Generally, the company's rivals are Bamboo Airways (>12.3%), Vietnam Airlines (33.3%) Vietjet Air's biggest competitive advantage lies in its ability to manage costs and reduce the cost of providing their services This is also an important key to create a sustainable competitive advantage if we do a cost comparison between Vietjet Air and other domestic airlines These inimitable and irreplaceable sustainable competitive advantages help Vietjet Air stand firm in the fiercely competitive aviation industry with a high rate of rejection 2.8 Market structure

The market structure focuses on maximising the domestic market Most airline companies have an oligopoly market structure and Vietjet Air Group is no exception, because according to rivals' assessments, Vietjet Air operates in the field of delivering digital transformation projects in a quality-price manner, in order to satisfy customers' more varied expectations and advance the growth of airlines and enterprises Freight services and ground handling services are recent business areas Oligopolistic competition thrives when firms, particularly Vietjet, are free to decide how to add new routes, and when promotions provide customers the chance to look for low-cost flights The results are exclusive in-flight value offerings and more pricing choices for passengers, and the conclusion is that oligopolistic competition market structure is drawn

2.9 Strategies and applications

From the above analysis, we propose some strategies and applications to develop Vietjet air closer to customers and more stable in the market in the future Currently, Vietjet air appears to be constantly delayed, possibly due to some technical problems, weather, and

as a low-cost airline company, Vietjet Air is overloaded with passengers, so the delay is a huge impact on the company and customers To solve this situation, we propose a plan that the aircraft apron system must continuously streamline the slots of each airline in terms of waiting time, parking as well as take-off, and increase the scheduled flights as low as night flight Besides, vietjet air should focus on communication and e-commerce to reach more customers The company has just combined advertising on social networking platforms and created more incentives for customers so that they can trust and always choose Vietjet air as the best airline in the future

3 Conclusion

To sum up, through this report, we can have an overview of everything inside and outside

of Vietjet airline company We can know all the resources of the company, the organizational structure as well as the market structure It helps us to analyze which businesses sectors of the company and through learning the company's supply - demand,

we can know the reason why the company has surplus and shortage Besides, we can also know the company's revenue, costs and profits, especially the competitors that the company faces in the market in 2020

4 References

Pindyck, R.S., Rubinfeld, D.L and Mehta, P.L., 1995 Microeconomics (Vol 4) Englewood Cliffs, NJ: Prentice-Hall

https://vnr500.com.vn/Thong-tin-doanh-nghiep/CONG-TY-CP-HANG-KHONG-VIETJE T-Chart 5349-2021.1html

Vnr500-2021

https://ir.vietjetair.com/File_Upload/financial-information/annual-reports-root/annual-repo rts/2021/VJA_AR%202020_ENG%20FULL%2009.08.21-R1.pdf

Annual report 2020

https://ir.vietjetair.com/File_Upload/financial-information/key-highlight-presentation/2020 /Vietjet_Business%20results-%20Audited%202020%20&%20Update%20Business%20res ult%20Q1.2021_final.pdf

Audited Financial Report 2020

https://ir.vietjetair.com/File_Upload/financial-information/key-highlight-presentation/2020 /Vietjet_Business%20results-%20Audited%202020%20&%20Update%20Business%20res ult%20Q1.2021_final.pdf

Vneconomy -Thị trường hàng không Việt năm 2021 và triển vọng 2022

https://vneconomy.vn/thi-truong-hang-khong-viet-nam-2021-va-trien-vong-2022.htm Vietnam - Vietjet reports profit in 2021 despite impacts from COVID-19

https://en.vietnamplus.vn/vietjet-reports-profit-in-2021-despite-impacts-from-covid19/224 421.vnp#:~:text=In%202021%2C%20Vietjet%20has%20operated,200%20percent%20yea r%20on%20year

One2fly -Thị phần nội địa của các hãng hàng không tại Việt Nam

https://one2fly.vn/thi-phan-noi-dia-cua-cac-hang-hang-khong-tai-viet-nam/

MarketingAI - Chiến lược marketing của Vietjet air và những con số ấn tượng

https://marketingai.vn/chien-luoc-marketing-cua-vietjet-air

https://www.studocu.com/vn/document/truong-dai-hoc-thuong-mai/quan-tri-hoc/loi-the-ca nh-tranh-cua-vietjet-air/23760351

Vneconomy - Thị trường hàng không Việt năm 2021 và triển vọng 2022

https://vneconomy.vn/thi-truong-hang-khong-viet-nam-2021-va-trien-vong-2022.htm Vietnam

https://www.vietnamplus.vn/chuyen-gia-dua-ra-nhung-ly-do-khien-gia-ve-may-bay-bi-day -len-cao/635505.vnp