business communication vietjet air

NATIONAL ECONOMICS UNIVERSITY CENTER FOR ADVANCED EDUCATIONAL PROGRAMS

BUSINESS COMMUNICATION Case study: VietJet Air

Ha Noi, May 2023

business communication is critical in the airline industry, as it aids in the management of

relationships with key stakeholders Poor business communication, on the other hand, can damage relationships, potentially resulting in lost revenues and ruined reputations Our group opted to examine the business communication instances of a Vietnamese aviation firm in order to grasp better how business communication can benefit organizations that routinely engage with hundreds of countries, from large to small We select VietJet Air as our target airline because of the company's outstanding vision of "to become a multi-national aviation group with a route network covering the entire region and the world."

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LIST OF FIGURES

Figure 1.1: The status of Ms N.T.M complained about VietJet's irresponsibility 0000 7

Figure 1.3: Traditional vs Social Media Communication between Businesses and Customers 10 Figure 1.4: A negative review about VIetLJetÌs delay ch HH nào HH HH Hung 12 FIigure 1.5: The crowd of customers watting for their delayed fliglits - cà c2 13 Figure 1.6: The news talking about the terrtble situation at Tan Son Nhat aIrport 13 Figure 1.7: The bad review from an Indian CusfOIN€T c1 St 2110221112101 11 1 HH 14

Figure 2.1: The leaked picture from the bikini show during VJ7269 flight cee 16 Figure 2.2: Leaked picture from the bikim show during VJ7269 fliphit à cào 16 Figure 2.3: The apology released on VietJet fanpage by CEO Nguyen Thi Phuong Thao 17 Figure 2.4: VietJet fanpage was taken down a few hours after the apology released 17 Figure 2.5: Qur proup's analys1s OŸ aDoÏÒY - nh HH HH HH HH 1t 1g tt nảy 19 Figure 2.6: The Six Dimensions of Professional BehavIOrs - - tn nhe Hà tre 20

Figure 2.8: S1x steps {or Dealing with ConIC( TH HH HH ngà HH Ho Ho Hà 22 FIigure 2.9: The status of MC Dan Le opposed VietJet for "desp1ising womeri” - ‹ s5: 23 Figure 2.10: The opinion of a women about VietJet’s performance tenn 23 Figure 2.11: Women's comments objected to VietJet's use of the lack of clothes of women to

Figure 2.13: The Five Rs of Apologizing Effectively ccc ccccccttetetectetetececteteneeieen 26

I INTRODUCTION OF THE COMPANY

The VietJet Aviation Joint Stock Company, known as VietJet Air or VietJet, is a domestic low-

cost airline that is headquartered in Hanoi, Vietnam The company has been registered as a joint- stock company with the Vietnamese government and is incorporated under the name “Cong ty Co phan Hang khong VietJet’” In November of 2007, the Vietnamese Minister of Finance granted Vietjet as the first establishment of a privately-owned new-age airline in Vietnam with the initial approval to operate The company’s offerings encompass various ancillary services, comprising in-flight, cargo, baggage, specialized, and duty-free amenities Moreover, it extends direct support amenities towards air transportation and the movement of air passengers On December 25, 2011, the aforementioned airline initiated operation after experiencing a series of

setbacks Commencing its service with three A320 aircrafts, VietJet emerged as the second non-

state-owned airline to provide domestic air transportation services within Vietnam In doing so,

VietJet elevated the total number of domestic carriers to five In December 2014, the carrier

attained a significant milestone as it transported its 10 millionth passenger, while a year later, in December 2015, the carrier reached another noteworthy achievement by carrying its 25 millionth passenger

VietJet had initially intended to employ the AirAsia label subsequent to obtaining an investment from the Malaysian low-cost carrier However, due to AirAsia being refused regulatory

authorization, VietJet proceeded with its own brand On 28-Feb-2017, VietJet Air undertook an

Initial Public Offering (IPO) on the Ho Chi Minh City Stock Exchange, thereby establishing itself as the pioneer airline in Vietnam to be listed on this exchange with the trading code of HOSE: VJC The business in question has secured a registered capital of VND 30 trillion (equivalent to USD 1.3 billion) through the issuance of shares priced at VND 90,000 (amounting to USD 3.95) per unit

II CASE 1

1 Descriptions of this situation

In June 14-15, 2019, VietJet's flights from Hanoi, Da Nang, Cam Ranh, Tan Son Nhat airports to

international flights such as Taipei, Bangkok has repeatedly canceled, which has caused many passengers to sigh in frustration and anger because of long-time waiting at the airport.

Responding to a question from Nguoi Lao Dong Newspaper about passengers' complaints, a representative of VietJet said that on June 14 and 15, due to the impact of the delay in receiving a new plane and the reason for the operation, a VietJet's flight number had to adjust the departure time In order to minimize the impact of this, VietJet has urgently adjusted the flight schedule and increased the rental of wet charter aircraft to serve the needs of customers However, due to the delay in delivery of aircraft by manufacturers and wet-leasing partners, it still affects the airline's operations Several other flights were affected

According to VietJet, the airline has informed passengers about flight information (delays, cancellations) to minimize passengers’ arrival at the airport and help passengers be more proactive in re-arranging their itinerary; coordinate with ground service companies to serve customers in terms of dining, hotel/hotel expenses, compensation for non-refundable advance, flight transfer, equivalent itinerary transfer, ticket refund

However, contrary to the airline's announcement, many passengers were most upset about the airline's behavior when the incident occurred, instead of announcing earlier to passengers to take

the initiative, VietJet’s announcement came too late Or, when it was time for the plane to depart

after being delayed, the airline continued to change the flight time for up to a dozen hours, which made many people unable to keep up

For example, Ms N.T.M (Hanoi) said her whole family consists of 8 people, at 5:30 am on the same day departed from home to Noi Bai airport to take flight VJ773 to Hanoi - Khanh Hoa scheduled to take off at 7:55 am to travel to Nha Trang Until 7:55 am, she did not receive any information or reply about the flights After that, a representative of VietJet said that the flight was canceled and will refund 100% and compensate passengers according to regulations If passengers choose to switch to a flight to Da Lat, they will be compensated an additional 200,000 VND/passenger for the ride from Da Lat to Nha Trang After that, Ms M.'s family decided to change direction to Da Lat to catch the car from there to Nha Trang At 12:20, when she was going to check in, she heard the announcement that the last passengers asked to board VJ773 "After that, the whole family rushed to argue and fight to change the flight from Da Lat

to Nha Trang Tired, hungry, sore throat and the whole family had nothing to eat," she shared After that, her whole family boarded a flight to Nha Trang at more than 13 o'clock the same day

1, Huong Giang som

H6ém qua lic 08:15 -@

11 18 1 CANH CAO VE SU THIEU TON TRỌNG KHÁCH HÃNG VA VO

TRACH NHIEM CUAVIETJETAIR Ff Ị

Giờ này nằm đây k có 1 cái cảm giác nào lột tả dc hết ẩm ức trong lòng, chuyến bay tử Nha Trang vé Ha Nội khởi hãnh bay vào lc 20h15 ngảy 14/6, nhận dc tin nhắn của hãng là delay xuống 21h15 , ok cũng tạm chấp

nhận dc , 20h18 có mặt tại sân bay, tiếp tục báo delay và giờ là 7h 22 sáng ngày 15/6 ,mình và gia đình vẫn ở Nha Trang , không 1 lời giải thích vì sao

huỷ chuyến , k 1 lời xin lỗi vì sao lại đem con bỏ chợ , cả sân bay não loạn , khổ nhất là những người già và trẻ nhỏ nằm la liệt , trên bảng tin vẫn liên

tục ghi giờ khởi hành nhưng k hề có máy bay , 1h sáng 1 em gái bên hãng dõng dạc đứng ra trả lời : huỷ chuyến , k có hỗ trợ gì , chï hoàn vé và sẽ đền bù mỗi người 400 nghìn nhưng sẽ chuyển vào tài khoản cá nhân sau 1 ngày ,đương nhiên những khách nào có chuyến bay kế tiếp thì sẽ k kịp giờ bay, ck mình vì có việc nên phải book luôn vé từ Cam Ranh đi Thái Lan

bao nhiêu , ai muốn đi đâu thï đi , ai muốn ở lại tiếp tục chờ thì ở lại , vì từ

sân bay Cam Ranh - Nha Trang về Trung tâm khoảng 35 km , quanh sân

bay k có lấy 1 khách sạn nào ,đồng không mông quạnh, xong hết các khâu thủ tục giấy tờ , cả nhà tha lôi lếch thếch nhau đi tìm chỗ ngủ đến 2h sáng „

mệt mỏi , khó chịu , cũng may gặp a taxi tốt bụng dẫn ra chỗ khách sạn

quay ra trêu nhau ° chuyến phiêu lưu kỷ thứ anh nhỉ, lai đc ở lại Nha Trang tiếp @?) " thôi thì 1 lần và mãi mãi , có cho thêm tiền bảo mua vé của Vietjet

mà đi rẻ lắm , thì cũng chịu , vái cả nón cũng k dám bay thêm lần nào nữa

Figure 1.1: The status of Ms N.T.M complained about VietJet's irresponsibility In addition, flight ticket agents on Facebook continuously made urgent announcements about VietJet Air's flight delay, chain cancellation and giving reasons for speculation about this situation At the same time, the agents also warn flight customers about the compensation for the delay time as well as guide the customers who do not listen to the airline's "sweet" words about the agent receiving the compensation because waiting for the refund to return to the agent usually takes from 1 hour up to 3 months

The Civil Aviation Authority of Vietnam has also issued a notice about VietJet Air's flight delay and mass cancellation and confirmed that by June 16, VietJet's flight schedule will return to

normal However, according to the passengers themselves, on June 16, VietJet still canceled a series of flights.

2 Reasons for studying this situation

If airplane delays occur too many times, it can create a pattern of unprofessionalism in the airline industry Passengers may become frustrated and lose trust in the airline's ability to provide reliable and efficient service This can lead to negative reviews and a damaged reputation, and other long-term impacts on the success of the business, for example:

e Customer service: In the airline industry, customer service is key, and it is important for

businesses, especially those in airline industry, to communicate effectively with their customers to manage their expectations and ensure they feel valued

e Crisis communication: Airline delays can sometimes turn into crises, especially if there are multiple delays or cancellations which lead to consequences for businesses During these situations, People in charge need to be prepared to communicate quickly and effectively to help customers on having a good understanding of the causes of delays e Reputation management: Airline delays can damage the reputation of an airline or

airport By studying the causes of delays, businesses can identify areas for improvement and work to address them, which can help to maintain their reputation and customer loyalty

e Legal and financial considerations: Airline delays can have legal and financial implications, such as compensation for passengers, lost revenue, and increased costs Businesses need to have a good understanding of these considerations to ensure they are complying with regulations and managing their finances effectively

3 Reasons for this situation

a) Ineffective Information Downward Flow and Information Upward Flow

Downwardl Communication

from managementto subordinates

Opward - Horizontal Communication Communication (17 00 1 1 0 0 10) among workers at same level

Figure 1.2: Information Flow in Organizations

The root cause of VietJet's delays and cancellations is the suspension of flight hours of some pilots whose working hours exceed the regulations that the airline did not detect On June 15, 16, 2019, VietJet converted the software to manage the working and rest time of flight crew

members from the old software system (Geneva) to the new management software system

(Geneva) AIMS while the impact of the change on the safety management system has not been assessed However, VietJet's crew scheduling and operation control staff still used manual methods to calculate flight time and limit Limited flight time at some point when not proficient in using new software, which make the management not being informed accurately about the pilot's flight time Therefore, when Ministry of Transport requested the airline to stop the flight time of some pilots immediately, VietJet did not have a supplemental plan for the problem,

which resulted in the suspension of some flights in June 14-15 Therefore, we can conclude that the cause of VietJet's incident on the 14th and 15th days stemmed from the failures in

transmitting VietJet's internal information: Information from management was not transmitted clearly to the flight schedule allocation staff, and working progress did not reflect accurately to the management, resulting in the airline not being able to deal with the unexpected problem

b) Lack of communication skills

External functions involve answering inquiries about products or services, persuading customers to buy products or services, clarifying supplier specifications, issuing credit, collecting bills, responding to government agencies, and promoting a positive image of the organization Based

on customers’ reactions in June 14-15, we can conclude that VietJet failed to communicate with

customers, thereby causing a communication crisis and damaging the company's image First, Vietjet's explanation is not clear and inconsistent Airline staff explained crookedly to customers Unreasonable explanations, mconsistent actions among employees make people question what really happened

Another reason leading to customer frustration is the unprofessional attitude of VietJet staff at the airport According to the feedback of some customers, the support staff also have an inappropriate attitude when encountering questions from flight passengers Passenger Mr P.X.T.

said he had received Delay notifications 3 times in a row at 6:30 pm, 19:40 pm and 20:25 pm After 3 hours of waiting and 90 minutes of queuing, at 19:45, the support staff called and asked: "Are there any other passengers going to Hai Phong at 20:25?" and when he entered the check-in counter, he only received a sentence from the newspaper counter: "Please go to the il counter to solve it" At counter il, many passengers have been protesting against the cancellation of the flight to Vinh without any support for them There are a lot of aggressive security guards around.” According to Mr T.'s share, the attitude of the support staff was also very "bossy" Mr

T himself, who often travels by plane, had a frank discussion with VietJet's staff and was "favorably supported", "because the flight was delayed 3 times, so if you want, the airline will

will support to change the flight over 2 days after the fee is 440k or buy a new ticket, go to the counter to pay.In front of the unprofessional way of working and the inappropriate attitude of the

staff, Mr T has chosen another airline to travel transfer c) Poor control of Backchannel

Customers Customers

TK is eae arene ll communication is from company to persistent and Rear transparent, customer to compan: a bidirectional, many-to-many

one-to-many or

many-to-one /

TV, phone, mail, etc Twitter, Facebook, etc

Traditional Channels Social Channels

Businesses Businesses

Figure 1.3: Traditional vs Social Media Communication between Businesses and Customers

The integration of social media and other forms of information technology, along with the

adoption of flatter hierarchical structures, has substantially transformed the manners in which

corporation communicate both within and outside of their business A significant transition can

be observed from traditional, unilateral modes of communication, such as printed memos and letters, towards dynamic, real-time, and eco-friendly forms of communication The acceleration

of communication within organizational settings is facilitated by various technological platforms, including e-mail, instant messaging (IM), texting, blogging, and engagement with social media sites such as Facebook, Twitter, and LinkedIn The present image provides a comparative analysis between the conventional singular-direction communication framework in business and 10

the current highly interconnected, pervasive and diverse social media communication model

characterized by manifold interactions

As a consequence of this alteration, contemporary enterprises are compelled to exercise considerable caution in regards to potential media disclosures and backchannel The phenomenon known as backchannel refers to the electronic exchange occurring in real-time during a conference presentation, lecture or entertainment program It operates as a parallel discourse unfolding in the background, supplementing and at times complementing the primary event The term ‘backchannel' pertains to the synchronous digital interactions that occur in parallel to a meeting or presentation within the realm of business Anticipating unintended audiences and public criticism is a crucial aspect for effective communication in the business

domain

Regarding Vietjet case, not only did the airline provide an account of the aforementioned occurrence, but a number of customers also shared their perspectives on the matter through social media channels The divergence between Vietjet's official declaration and the sentiments expressed by its clientele has generated skepticism with regard to the company's level of proficiency and probity Consequently, the negative impact on the airline's public perception is exacerbated, leading to diminished customer confidence and trust

4 Consequences of this situation (with evidence/ facts/ statistics/ images )

These delays ultimately resulted in a significant disruption to airline schedules, causing a domino effect on other airlines at the airport

The delay of VietJet Air caused customers to wait for at least 2 hours at the airport, creating a chaotic situation Passengers were stranded at the airport, unable to board their flights on time, and had to wait for the airline to resolve the issue The situation was further ageravated by planes that were delayed taking up space meant for other planes, resulting in further delays among other airlines at the airport

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To make matters worse, there were instances where planes landed on time, but customers could

not leave due to the late arrival of transportation This situation left customers feeling frustrated and helpless, and it highlighted the need for better management and coordination to avoid such

issues in the future

Such delays can have a significant impact on airlines, as they may lead to negative reviews, such as this one:

Tuấn Hiến Buồn cười ở chỗ hãng bay thu tiền vẻ, nhã dich vu san bay du khong thiéu mot dong cho bay xuống sân bay thì phải c xe u người thực hiện dịch vụ wt san bay

khoảng 50% tron cao diem (chua bang mot phan So với mọi nãm) aa bi lỗi dã uyen May ‘bay thi

luôn thiếu chỗ so với lượng vé bán ra nên họ liên tục làm thủ thuật dịch chỗ từ Chết bay trước sang

Figure 1.4: A negative review about VietJet’s delay

In a similar circumstance, on the evening of June 3 to 4, VietJet Air faced significant delays that left many customers stranded in the lobby of the Tan Son Nhat domestic terminal Some employees had to check-in passengers manually due to the delay, leading to hundreds of passengers being unable to check-in and subsequently causing further delays for the airline While previous VietJet Air flights had experienced delays of up to 30 minutes to an hour, the

situation on this particular day was much worse For instance, the VJ150 flight from Ho Chi

Minh City to Hanoi faced continuous delays from 6 pm on June 3 to the early hours of June 4 Other VietJet Air flights were also delayed until morning, causing significant inconvenience for passengers who had to spend hours waiting in the airport

Some passengers were forced to lie on the airport floor to sleep, while others had to sit on the floor due to the lack of available seats in the overcrowded lobby The situation was highly stressful for customers, and it highlighted the need for airlines to have proper contingency plans

in place to manage delays effectively

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To manage the situation, VietJet Air added more staff at around 10 pm on June 3 to help manage the flow of customers and alleviate stress While this helped to reduce the number of stranded passengers, many flights were still delayed, causing further inconvenience for customers

Figure 1.5: The crowd of customers waiting for their delayed flights

Cao điểm của việc ùn ứ với các chuyến bay Vietjet diễn ra trong ngày 3 đến 4-6, khi hành khách ở nhiều sân bay bức xúc vì bị kéo dài thời gian làm thủ tục, thời gian chờ lên máy bay và từ khi máy bay hạ cánh đến lúc ra xe về sảnh ra vào sân bay

Sáng 4-6, hệ thống check-in online vả kiõt check-in của hãng nảy tại sân bay “tat dai”, phai don khách qua check-in tại quầy khiến nhiều hành khách than trời

Hàng loạt chuyến bay bị chậm giờ, ảnh hưởng dây chuyền đến lịch khai thác ở các sân bay nội địa trên cả nước Nguyên nhân theo Hãng Vietjet là do hệ thống máy chủ phục vụ mạng check-in dat tai Canada bi lỗi, hàng chục chuyến bay tối 3 đến trưa 4-6 đều chậm khởi hành Đến 14h ngày 4-6, Vietjet thông báo đã khắc phục xong lôi hệ thống và gửi lời xin lỗi đến khách hàng Tuy nhiên, theo thông tin của 7uổï Trẻ tại cảng hàng không quốc tế Tân Sơn Nhất và Cam Ranh,

tới 17h cùng ngày tình trạng này vẫn chưa được giải quyết dứt điểm Cụ thể tại sân bay Tân Sơn

Nhất, Vietjet đã thực hiện được 43/107 chuyến đi quốc nội

Figure 1.6: The news talking about the terrible situation at Tan Son Nhat airport When multiple cases of delaying happen, the company has to bear a bad reputation There are a lot of reviews like this on various online platforms where frustrated passengers share their experiences This negative feedback can have a lasting impact on the company's reputation, as potential customers may be deterred from booking with the airline Moreover, flight delays can

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cause significant inconvenience to passengers, such as missed connections or important events, which can lead to further frustration and anger

"Worst airline | have travelled”

Kedar Poddar (India) 18th April 2023

Trip Verified | Worst airline | have travelied No update in the website even 90 min before the scheduled

Geparture for any delay of the flight So they want flyers to wail for hours at the airport and waste their precious time The staff behave badly with the passengers Difference of fare is now not compared to other non low cost airlines

So please dont choose this airlines even at very low price

Type Of Traveller Family Leisure

Seat Type Economy Ciass

Route Hi Chi Minh to Da Nang Date Flown April 2023

Seat Comfort Ground Service

Value For Money

Recommended

Figure 1.7: The bad review from an Indian customer

Sir Poddar was pretty annoyed that he didn't get any updates about his delayed flight He had to

wait at the airport for hours, not knowing when his plane would take off This problem can be a huge hassle for passengers in this case Sir Poddar Waiting around like that is not only a waste of time especially, if you're traveling for work or have important plans, a delayed flight can really mess up your schedule

And to add fuel to the fire, sir Poddar received very bad services when he stayed waiting for his flight to take off The unprofessional behavior of the airline staffs not only towards him but everyone at the airport at that time really got on his nerve

"avoid this company”

M Keaten (Vietnam) 13th April 2023

Trip Verified | Terrible service: The airline constantly delays flights, Causing significant inconvenience to

passengers Every time | have flown with this company, my ‘light has been delayed by several hours, severely

affecting my plans Unacceptable informational support: Information about delays is provided only 30-40 minutes before departure not allowing passengers to plan their time and adequately prepare for the trip respect for customers: The company completely disregards passengers' concerns about delays and offers no compensation or

even apologies for the inconvenience caused Lack of accountability: The airline does not disclose the reasons for delays and rescneduling, leaving passengers in complete uncenainty and helplessness Incompetent staf

Company employees cannot accurately inform passengers how many hours the flight will be postponed, reflecting a

low level of professionalism and attention to detail Poor price-quality ratio The ticket prices of this airline do not match the quality of services provided, especially considering the instability of their flight schedule Lack of flexibility

In case of delays or rescheduling, the company does not offer alternative solutions, such as providing other flights or

reimbursing expenses for hotels and transportation Reputation loss: Due to constant delays and incompetence, the and choose more reliable camers

Figure 1.8: The bad review from a Vietnamese customer

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