Case analysis vietjet air

MINISTRY OF EDUCATION AND TRAINING EASTERN INTERNATIONAL UNIVERSITY COMPANY ANALYSIS VIETJET AIR BUS 378 - Business Environment Lecturer: Mr Hien Pham Group Name IRN Tran Thi Tuyet Trinh 1632300195 Luu Thi Mai Trinh 1632300051 Pham Thi Ngoc Anh 1632300061 Truong Mai Ngoc Ha 1632300157 Binh Duong, 2020 Table of Contents I Company profile .4 II Cornerstones of the successes and failures in the history A Successes a) Lower price b) Cost optimization .6 c) Marketing strategy B Failures a) Avoid responsibility b) The staff is not dedicated c) Long delay-hour .8 d) Accidents III Main Analysis .10 SWOT Analysis 10 1.1 Strengths 10 1.2 Weaknesses 10 1.3 Opportunities .10 1.4 Threats 10 PESTEL Analysis 11 2.1 Political factors 11 2.2 Economic factors 11 2.3 Sociocultural forces .11 2.4 Technological factors 12 2.5 Environmental factors 12 2.6 Legal and regulatory factors 12 BCG Matrix 12 IV Key challenges and how it took actions to handle them in the company development history 14 a Price Strategy 14 b Improving customer service quality .14 V Upcoming challenges in the next five years 15 a Competitive Domestic Market 15 b Expanding International Network 16 VI What made this company stay in the top 10 largest private enterprises in Vietnam recent years? .16 VII Recommendations .19 a Continue to expand 19 b Build strong brands 19 c Improve yield management systems .19 References 20 I Company profile VietJet Air was established from main shareholders, T&C Group, Sovico Holdings and HDBank with an initial charter capital of VND 600 billion (equivalent to USD 37.5 million at the time of capital contribution) The airline was licensed by the Minister of Finance of Vietnam in November 2007 and became the fourth airline in Vietnam, behind only Vietnam Airlines, Jetstar Pacific, and Air Service Flight Company ( VASCO) and was the first private airline in Vietnam On December 20, 2007, Minister of Transport Ho Nghia Dung awarded the air transportation business license to VietJet Air Vietjet Aviation Joint Stock Company which not only air transportation but also provides goods and services consumption needs through e-commerce technology applications Vietjet is an official member of the International Air Transport Association (IATA) with the Operational Safety Certificate (IOSA) Vietjet is ranked among the highest in the world with stars by AirlineRatings.com, a prestigious organization specializing in the assessment of safety and products of global airlines The company’s vision is to become a multi-national aviation group with a route network covering the entire region and the world, providing and developing not only aviation services but also consumption products on the e-commerce platform and being a favourite and trusted brand name Besides that, its mission is to operate and develop domestic, regional and international route network; bring a breakthrough in aviation services; make aviation services to become popular means of transport in Vietnam and in the world; bring joyfulness, customer satisfaction by providing luxurious and exceeding expectation services with friendly smiles Vietjet operates 80 A320 and A321 aircrafts which can operate more than 385 flights per day and carry more than 65 million passengers, with 105 routes covering destinations in Vietnam and international routes to Japan, Hong Kong, Singapore, Korea, Taiwan, China, Thailand, Myanmar, Malaysia, Cambodia, Vietjet has a plan to expand its flight network throughout the Asia-Pacific region to expand regional routes and have signed procurement contracts for a new and modern generation of aircraft with major aircraft manufacturers in the world Currently, the Vietjet’s Board of Directors consist of seven members who are madam Nguyen Thanh Ha (Chairman of the Directors), madam Nguyen Thi Phuong Thao (CEO) , Dr Nguyen Thanh Hung (Vice President), Mr Chu Viet Cuong, Mr Dinh Viet Phuong, Mr Luu Duc Khanh, Mr Donal Boylan (Vietjet Aviation, 2018) II Cornerstones of the successes and failures in the history A Successes a) Lower price In Vietnam, there are two largest airlines in the market, Vietjet Air and Vietnam Airlines, which account for almost the entire domestic market share Each firm represents a different business model Vietnam Airlines follows the FSC (Full Service Carrier) model to provide full service while Vietjet Air follows the LCC (Low Cost Carrier) model set the target of reducing the price to the lowest possible level An important point of the airline industry is that customers are very sensitive to the tickets’ price If other essential businesses offer high prices, consumers still have to buy However, most of the Vietnamese people buy air tickets with the main demand for traveling As a result, if the price is too high, customers are willing to give up and switch to alternative services Therefore, it is very important to offer competitive fares That is also the reason why in Vietnam, the LCC model of Vietjet Air has many advantages over the FSC model This has also been proven in the past when Vietjet Air quickly created a large market share even though it had just entered the market for less than 10 years VietJet's target customers are young, dynamic customers who want to travel everywhere to explore as well as the mid-income earners who want to experience flying travel for the first time Therefore, from the beginning they have positioned themselves as "low-cost airlines" Then, identifying the right target customers of VietJet is a great success because at the time of it was launched, Vietnam Airline is a major airline only for high-income earners and with the introduction of VietJet, airplane travel is not too far-fetched In particular, the trend of "xách vali lên và đi" is growing in recent times among young people who not have high income, making VietJet Air more and more close and gradually dominate the domestic market The slogan "Bay là thích ngay", VietJet offers the best affordable flights, zero VND flights as well as young, dynamic and beautiful flight attendants From the very first days of introducing its low-cost flight strategy, VietJet has been very successful in positioning its brand in the hearts of potential Vietnamese customers, to become an airline company that many Vietnamese people consider first when they want to travel by plane (Khánh, n.d.; Trần, 2018) b) Cost optimization In order to implement the strategy of providing cheap prices for people, Vietjet air has found ways to optimize costs Currently, they only operate narrow body aircraft A320 and A321 only This is a specialized flight line serving short flights (5-6 hours of flight) allowing the airline to keep the same crew and return on the same day with an 8-10 hour shift, thereby reducing accommodation and salary expenses for crew Instead of charging the cost of baggage and food service together with ticket price, VietJet separates itself to serve passengers who really need it (Trần, 2018) c) Marketing strategy This airline has been very successful when building a brand "low price" But unlike many other brands that only locate a single brand, VietJet is also known as the "sexiest" airline in Vietnam Starting the series of stories is the image of Ngoc Trinh and her friends showing off her hot body with VietJet Air with bikinis inspired by the two main colors of this airline: red, yellow Then, at the end of 2017, Vietjet Air launched a bikini calendar for 2018 The calendar is an image of supermodels in sexy bikini This is seen as an affirmation for the company's pursuit of a bikini model Commenting on Vietjet Air's 2018 bikini calendar photos, China's South China Morning Post believes that using such sexy images causes controversy in traditional and conservative markets in the region field The Chinese newspaper also said this could affect the company's plans to expand into mainly Muslim countries Besides that, when many people think that promoting the brand by bikini models is not suitable for Vietnamese culture, many people think that this is also a good way to create a new breakthrough for an airline that many people haven't thought of yet It can be seen that it is also an important part in helping Vietjet Air account for 29% and then 41% of the aviation market compared to 43% of Vietnam Airlines and outperforming Jestar Pacific after only five years of operation This is considered a speedy step, is a miracle for a fledgling airline In general, the marketing implementation with the right strategy has contributed significantly to the development and growth of Vietjet Air What helps Vietjet Air to win and succeed in the "sexy" marketing that many airlines around the world have also applied but failed is partly due to the way they know how to apply the "consistent" and consistent rule Because from the very first day of launch, they have shown that this is a young, fresh and cheerful airline In addition, the mixed opinions about Vietjet's image accidentally make people pay more attention and know the brand of the company more According to CAPA calculations, Vietjet Air's brand identity in Vietnam has reached 98% (Khánh, n.d.) B Failures a) Avoid responsibility When people are too familiar with the image of the company's bikini model to promote their brand, there are also some ridiculous PR forms of VietJet, especially in early 2018 It is known that VietJet Air is the airline have accompanied with the Vietnamese U23 football team in the AFC Cup earlier this year And the success of the national football team is unexpected, that is why every gesture of the soccer team has received great attention from the fans However, on the day the Vietnamese football team returned to the country, the image of Vietjet models in offensive clothing appeared to welcome the U23 players made many people feel dissatisfied, even U23 boys still feel blush and confused Many people believe that this is crummy form of PR, PR is in the wrong place (Dương, 2018) When being heavily criticized by the Vietnamese people, Vietjet General Director Nguyen Thi Phuong Thao said: “On the plane to welcome the U23 Vietnam team from Changzhou to Hanoi, there was a repertoire of random actors Inspiration performance This performance is not part of the company's program but is voluntarily organized by the trip organizers Moreover, an actor voluntarily asked for signature and took pictures with the players and posted pictures on social media outside the repertoire space, creating frustration for the online community ” (Ngô, 2018) Instead of frankly confessing, Vietjet publicly posted an apology that has been edited twice but directed responsibility towards the model group and the tour's organizers, saying that Vietjet itself was also surprised This is an explanation that can not satisfy public opinion, making the matter be pushed higher According to many media experts, the case of Vietjet Air allowing a bikini model on a jet to welcome the U23 team could completely end better for the company if there is a sincere apology b) The staff is not dedicated On April 2, 2015, two Vietjet employees refused to serve people with disabilities at Da Nang airport Specifically, the passenger is paralyzed with legs who previously took a flight from Hanoi to Da Nang One day later, this passenger was refused service by Vietjet staff when he had a flight back to Ha Noi because of the reason that “the passengers cannot move by himself" which seriously violating the regulations on quality of passenger services and policy of the company After that, Vietjet publicly apologized to the passenger and fined the two above staff, and sanctioned the chief and deputy representative of the airline at Da Nang airport (Trần, 2015) c) Long delay-hour Airline delay is not an uncommon case, but it is the problem in Vietjetair because it occurred frequently Only during the holidays of May 30 - May 1, Vietjet Air had 175 slow flights, accounting for 22.6% of the airline's total flights This is also the airline leading the flight delay rate on this occasion At the end of May, 2019, the airline continued to annoy customers when it was delayed for nearly hours According to the reflection, on May 20, flight VJ197 departed from Hanoi to Ho Chi Minh City, Vietjet Air delayed flight up to hours, causing about 150 passengers to wait at Noi Bai airport late at night (Trần, 2015) d) Accidents On November 29, 2018, the flight VJ356 from Ho Chi Minh City to Buon Ma Thuot which was carrying 207 passengers, landed in an imbalance due to the loss of two landing gear in the front The incident caused injured passengers to be hospitalized, many passengers were slightly scratched The VN-A653 aircraft received weeks ago was suspended to serve investigation and repair (Đoàn, 2018) Previously, another incident also occurred on flight number VJ162 of Vietjet Air Specifically, on June 7, 2018, when flight VJ162 moved to the runway for the plane to prepare to leave Tan Son Nhat (Ho Chi Minh City) for Hanoi, a snake suddenly appeared on the luggage compartment of passengers , row number 15 of the plane Then the flight crew is forced to stop taking off, remove passengers from the solid area and notify the ground support unit After that, the flight crew turned the plane back to the parking lot The crew has carried out the process of bringing the passengers off the plane back to the station to ensure safety and wait for the department responsible for handling the incident, performing the snake (Đăng, 2020) On June 14, 2020, there was an airline flight from Phu Quoc, when landed at Tan Son Nhat airport at 12:10 p.m., was believed to be affected by heavy rain and wind, so the plane slipped off the only active runway (remaining runway is closed for investigation) Although no people were injured but the incident left Tan Son Nhat airport paralyzed for about hours to fix the problem (Phùng, 2020) When there were problems with Vietjet Air flights, some customers who frequently used this airline expressed concerns Specifically, Mr NMT, a customer who regularly uses Vietjet Air to travel, said: “I often use this airline for business trips, domestic travel, but recently when I am watching on media channels, I have known many problems with the airline flights which make me very worried Perhaps I will have to reconsider when choosing this airline company for my business trips." (Đăng, 2020) III Main Analysis SWOT Analysis 1.1 Strengths Vietjet increases the market share rapidly during the year Vietjet was established in 2011 however Vietjet became the largest company with 42% of market share and the company also receive the profit from 2013 The cost of products in Vietjet is lowest in Asia and all over the world Vietjet has profit after working years and revenue is one of component to promote the success of most affordable airline Vietjet also has a strength in doing marking because the company understand the psychology of target customers Vietjet has flights surrounding Vietnam with affordable price It will let customers consider to choose the flights of Vietjet 1.2 Weaknesses Vietjet don’t have any joint venture relationship with other brands This reason will make Vietjet have no advantages competition in the market VietJet don’t have good solutions to solve the scandals and this had negative effects on the choices of target customers 1.3 Opportunities There are many new places which attracting the travelers and the number of travelers increased 26 % compared to the previous year This will create the good opportunity for Vietjet Vietnam is the developing country so Vietnamese tend to choose an airline with affordable prices and flexible time It is a reason why Vietjet established after Vietnam airline but most people selected Vietjet instead of Vietnam airline 1.4 Threats The competition environment for aviation industry increase day by day Some airlines in Southeast Asia such as AirAsia and Lion also make a plan to have a joint venture partner in Vietnam More competitors want to join to home country of Vietjet  Decreasing the quality of service also make customers reconsider about their selection If Vietjet have no good solutions, this reason can make Vietjet’s revenue decrease  Overcrowding the airports is a difficulty to Vietnam and they can create more the flights with the flexible time 2 PESTEL Analysis 2.1 Political factors Government has some policies to protect the passengers than aviation industry because many risks and deaths associated with aviation industry can be happened Some insecurity factors can affect negatively the demand of customers and the airline start to lose customers because of these factors 2.2 Economic factors Vietnam is a developing country with low GDP and this reason makes Vietnamese people tend to choose the affordable airline to travel than luxury brands In 2017, Vietjet increased 43% in the market share and became the top airline in Vietnam with more flights, flexible time and affordable price In 2019, more than 45 million people in Vietnam overcame the poverty (The world bank, 2020) This means that Vietnamese people have more money and consume more, demand of travelling will be increased and the competition among airlines will be decreased The increase in GDP leads to increase the level of employment The market will have the high skilled employees and expensive resources Vietjet can decrease the cost of training however increase the average of salary for employees 2.3 Sociocultural forces Customers tend to choose the airlines including some factors such serivice, price, and flexible time Now, customers prefer the airlines which are providing the good service with affordable price With the reasons, Vietjet improve the service to adapt to demand of customers 2.4 Technological factors Vietjet has online booking system contains flight schedules which include time and price In the website, Vietjet requires the information and payment channel which create the convenience for customers Vietjet have a strength in doing marketing, they make some video ads in social media and TV to advertise about their brand and announce the promotions People tend to choose the convenient ways to communicate with the family’s members who live far away from them than travel to meet them This reason decrease the demand of customers for all airline brands not only Vietjet 2.5 Environmental factors Vietjet faces to carbon emission and noise pollution from airplanes which have impacts on the environment Air pollution from planes is cause of 2000 deaths all over the world with large carbon emission emitting into environment (Mason, 2010) Natural disaster and Covid-19 dynamic are also the reason that make the decrease in demand of travelling These reasons have negative effects on tourism industry and indirect affect the aviation industry Airlines cannot solve these problems, they just can have solutions to reduce the effects on revenue 2.6 Legal and regulatory factors Some laws and court decisions can affect the airline industry Because of Covid19, Vietnamese government made decision to have social distance The revenue of Vietjet can be decreased because of canceling the flights After the social distance, Vietjet had some discounts to attract the customers and promote the demand of travelling BCG Matrix Vietjet Air provides the service in high growth market with high market share, so Vietjet is in the star After years having the first flight of Vietjet, Vietjet is the top of airlines in home country and surpassed Vietnam airline and Jetstar Pacific Expanding the domestic flights and 16 foreign flights, the market share of Vietjet increased 43% in 2017 Vietjet air has 82 flights including 38 flights in domestic and 44 flights in other countries The number of flights was estimated about 1000 flights with some main countries such as Japan, Korea, and China Vietjet air had the first commercial flight in 2011 in 2012, the market share of Vietjet had 8% while Vietnam airline accounted for 70% A few years later, Vietjet had right strategies to increase the market share Vietjet increased the market share to 41% in 2016 while Vietnam airline decreased to under 42% (Ngành hàng không, 2018) Not only surpassing market share, Vietjet Air also rose in financial index Financial statements for the third quarter of 2018 of Vietnam Airlines and Vietjet Air showed conflicting business results Specifically, the profit before tax of Vietjet reach to 1,709 billion VND and increased 59% compared to the same period last year Meanwhile, pre-tax profit of quarter of Vietnam airline just had 571 billion VND and decreased 65% In the first nine months of 2018, Vietjet's pre-tax profit reached 3,868 billion VND, far exceeding the 2,426 billion VND of Vietnam Airlines, although the revenue was less than half of Vietnam Airlines IV Key challenges and how it took actions to handle them in the company development history a Price Strategy In 2015, Vietjet's ticket price dropped to 17%, only 815,725 VND on average In 2016, the fare increased a little but still very low Due to many different reasons, Vietjet always has to maintain unbelievably low prices, even when on holidays or near flight time Therefore, it can be seen that Vietjet Air's fares are not according to the laws of the market but are pressing to please users This is very dangerous in the long run (Toàn cảnh, 2017) To handle this issue, Vietjet Air took the actions in the price."Low price" is the leading price plan that VietJet Air has maintained until now Based on the average income of Vietnamese people, such a price plan is correct But to have such a "breathable" price for passengers, VietJet must also find all the instructions to increase costs Today, they operate only the narrow body A320 and A321 only This is a specialized flight format that helps short flights (5-6 hours of flight), helping VietJet to cut a large amount of operating and food budgets, and free up the flight team because it can turn around many flights, save gas budget (15%) because it is an advanced aircraft with a young age Instead of budgeting for baggage and catering services with ticket fare, VietJet separates itself to serve passengers who need it (Leo Minh, 2019) Moreover, the capacity of Vietjet airline will no longer be limited to selling multiple airline tickets, ensuring the operating cost of one seat per kilometer (CASK) as low as possible, but also in other keys: business capabilities of supporting services such as selling food, choosing seats, insurance, selling boarding rights and especially connecting customers with banking and financial services, integrating booking services car, hotel (Thi Truong, n.d.) b Improving customer service quality Vietjet Air does not care about improving management skills and techniques for more efficient productivity This airline brand has a lot of problems with its service such as airline delay, refusing to provide services to passengers with disabilities, the customer's suitcases were removed and valuable items in these were lost, the unprofessional attitude of staff… In the age of 4.0 technology that is people-centered, businesses, whether big or small, need to focus on service quality, need to understand customers, and constantly improve their image and service to bring the best experiences for customers Vietjet could have done better if timely actions were taken Vietjet Air's market share is still quite high in the total market share of the airline industry However, if Vietjet can not improve its service quality, scandals occur frequently will make customers discouraged and wondering about the quality of this airline's service (Khanh Khiem, n.d) One reason for the low service quality is current aircraft ground handling Aircraft ground handling is the servicing of an aircraft while it is on the ground and parked at a terminal gate of an airport Subcontracting aircraft ground handling to a third party means Vietjet may have to wait longer to get a stair truck for its flights, as the vehicle is busy serving airplanes of other carriers, lead to the late of the flights To avoid such inconvenience, Vietjet needs to have its ground services Vietjet is seeking permission to service its airplanes at the Noi Bai International Airport in Hanoi and the Cam Ranh International Airport in the south-central province of Khanh Hoa from January 1, 2020, it said in a document submitted to the aviation authority Vietjet believes that independently providing ground services for its aircraft will help enhance its service capacity and quality, thus strengthening its reputation In addition, the carrier plans to expand its fleet as well as increasing the number of flights, improving technology, well training to handle problems (Tuoi Tre News, 2019) V Upcoming challenges in the next five years a Competitive Domestic Market With the increasing demand for transportation today, the development potential of the Vietnamese aviation industry is obvious, and the introduction of new airlines is inevitable Previously, the fleet just mainly consisted of Vietnam Airlines, or private enterprises such as Vietjet, Jetstar, Bamboo Airways In the near future, it will be changed with the born of new airlines It is known that there are domestic enterprises that are proposing to establish an airline including Vingroup with Vinpearl Air, Thien Minh Company with Kite Air, and Vietravel with Vietravel Airlines To more specific, Kite Air plans to take off from 2020 with a fleet of 30 aircraft from now to 2025 Vietravel Airlines plans to take off in the second quarter of 2020, with a scale of 30 aircraft by 2025 Meanwhile, Vinpearl Air is expected to take off from July 2020 with six aircraft and increase to 36 aircraft by 2025 (Hai Minh, 2019) The addition of new airlines will increase the competitive pressure but must recognize the fact that this also brings lots of benefits The competition between old and new airlines is good for mutual development and improvement of service quality b Expanding International Network For the future, Vietjet has plans to grow high-volume, short- and medium-haul route network in Asia, increasing international network Vietjet is currently building a fleet of aircraft to 2025, which will reach 102 aircraft by 2020 and 200 aircraft by 2025 (Phung Tuan, 2019) Vietjet's new orders will serve the airline's plan to develop an airline alliance in the region and around the world while ensuring the airline's new fleet of aircraft is synchronous, comfortable and fuel-efficient until 2025 (Dong A, 2018) According to Bloomberg, at the Farnborough World Airshow 2018 in the UK, Vietnam Airlines and Boeing (USA) signed an agreement to buy 100 B737 Max aircraft worth 12.7 billion USD It is including 80 large 737 Max 10 planes and 20 737 Max 8s According to Vietjet, they will use Max 10s to meet the increasing demand for domestic flights as well as flights from Vietnam to destinations in Asia (Dong A, 2018) The agreement also covers the implementation of a series of strategic cooperation programs to build a service ecosystem in Vietnam, including technical maintenance, training, pilots, and engineering services engineers, mechanics, etc as well as programs to improve the management and automation capabilities of the airlines and the aviation industry in Vietnam The airline has a plan to expand its flight network throughout the Asia-Pacific region, is continuing to expand its routes in the region, and has signed a contract to purchase new and modern aircraft with reputable aircraft manufacturers in the world (Dong A, 2018) VI What made this company stay in the top 10 largest private enterprises in Vietnam recent years? VietJet Air is in the Top 10 of the most profitable private enterprises of the year In 2016, VietJet made a profit of nearly 2,500 billion VND According to the financial report for the first months of 2017, VietJet achieved an after-tax profit of 1,900 billion VND, up 44.7% over the same period last year Vietnam Report evaluates enterprises based on the following factors in weighting, with the main criteria being Profitability Indicators (ROA, ROE, ROR); Profit before tax; and Revenue of business (Lần đầu tiên, 2017) In more details: In 2017, Total net revenue in 2017 reached around 42,258 billion VND, increased 53.7% compared to 2016 and exceeded 0.6% of the year plan Profit before tax reached nearly 4,755 billion VND, increased by 75.9% compared to 2016 and exceeded 26% of the plan Parent company EAT is 4,527 billion VND, equivalent to profit per share (EPS) is 10,065 VND Thanks to its strong fleet growth of 17 ships (including modern aircraft A321 NEO - the first Airbus NEO aircraft in Southeast Asia), Vietjet has opened 22 new routes (1 domestic and 21 routes) international routes), increasing the total number of operational routes to 82, including 38 domestic routes and 44 international routes Transporting more than 17.11 million passengers in 2017 Air transport revenue for the whole year reached 22,577 billion VND, up 41.8% compared to 2016 and exceeding 4.6% of the year plan As of December 31, 2017, the total fleet consisted of 51 Airbus A320 and A321 aircraft VietJet has received 39 aircraft out of a total of 219 aircraft ordered by both Airbus and Boeing The punctuality rate for the whole year 2017 reached 85.59% Cost per seat kilometer excluding fuel cost dropped to 2.25 US cent, down by 7.3% compared to 2016 and is the lowest in the world thanks to good cost control in 2017 Expenses Average seat kilometer charge (CASK) including fuel cost decreased by 2.27% to 3.79 US cent Also in this year, Vietjet paid 10% cash dividend and 40% stock dividend for 2016 and advanced 20% cash dividend in 2017 With its positive business results, Vietjet has raised the rate of dividend payout ratio for 2017 from 50% to 60% and will soon continue to pay 10% cash dividend of 2017 on 7/2/2018 (Vietjet đạt gần, n.d.) In 2018, Vietjet's total number of passengers transported reached more than 23 million, leading the domestic market, the number of international routes increased to 66, accounting for nearly two-thirds of its total routes The results of production and business activities in 2018 were audited with revenue reaching 53,577 billion VND and pre-tax profit reaching 5,816 billion VND At the time of its listing in early 2017, Vietjet set a growth plan for the three years 2017-2018-2019, with the total profit after tax of 2017 and 2018 reaching 7801 billion VND The results exceeded expectations when in just years, the new-generation airline reached 10,400 billion VND of profit after tax Net income per share (EPS) is up to 9,850 VND Net return on equity (ROE) was 43.3% Price-per-share (P / E) ratio is attractive at 11.4 Vietjet also maintains the dividend rate of 50% per year In 2018, with positive business results, the company plans to pay dividends up to 55% Notably, in the context of a 30% increase in oil prices, air transport revenue reached 33,779 billion VND and pre-tax profit of air transport reached 3,045 billion VND, respectively up 49.8% and 48, 9% year-on-year, demonstrating the company's ability to grow revenue and manage costs well It can be seen that Vietjet's strong growth in 2018 came from its core business of air transport services Ancillary revenue, the segment with high profit margin, reached 8,410 billion VND, up to 53.5% year on year The structure of this segment in total revenue also changed from 24.5% in 2017 to 25.4% in 2018 Besides, there are very positive financial indicators Until December 31, 2018, total consolidated assets reached 39,086 billion VND, an increase of 23.5% over the previous year; Equity reached 14,038 billion VND, increased 32.5% over the previous year The company's cash balance as of December 31, 2018 amounted to 7,165 billion VND The Debt / Equity ratio decreased by 1.78 times in 2018, compared to 1.99 times in 2017 Similarly, the Debt / Equity ratio was at a very good level, down sharply from 0.71 times in 2017 to only 0.39 times in 2018 (Vietjet công bố, n.d.) VII Recommendations In this section, we discuss and support recommendations for future improvements to be taken by the “selected enterprise” These are continuing to expand, creating the strong brand, and improving yield management systems a Continue to expand Vietjet should continue to expand its international flight network and improved service quality to increase foreign currency revenue from ticket sales, increase ancillary revenue from additional services and take full advantage of fuel costs at international lower than domestic (due to tax and fee policies) b Build strong brands Brand is a source of outstanding competitive advantage Currently, Vietjet Air lacks a strong brand image in the region so that Vietjet should develop a stronger brand name in Southeast Asia through an attractive advertising campaign and strategic sponsorship For example, focus on a few key events in South Asia to allow people to experience the brand more It can sponsor soccer cups like the AFC Cup, Asia Cup, or sponsor electronic dance music events Vietjet Air's advertising and commerce is currently highly domestic with Vietnamese title, content, and images The more international experiences it focuses on, the more international customers it attracts It should that Furthermore, Vietjet Air should consider advertising its brands with bikini image because many countries in Southeast Asia are Muslim and have strict regulations about that problem (Marketing AI, n.d.) c Improve yield management systems Yield Management System (YMS) or Revenue Management System (RMS) is the process of understanding, predicting as well as influencing consumer behavior to maximize revenues or profits from a fixed perishable resource YMS is very important for Vietjet to have good profit margin When Vietjet air wants to expand to another, it would lose a lot of money without proper yield management systems (Chiếc lược marketing, n.d.) ... Long delay-hour Airline delay is not an uncommon case, but it is the problem in Vietjetair because it occurred frequently Only during the holidays of May 30 - May 1, Vietjet Air had 175 slow... network Vietjet is currently building a fleet of aircraft to 2025, which will reach 102 aircraft by 2020 and 200 aircraft by 2025 (Phung Tuan, 2019) Vietjet'' s new orders will serve the airline''s... and was the first private airline in Vietnam On December 20, 2007, Minister of Transport Ho Nghia Dung awarded the air transportation business license to VietJet Air Vietjet Aviation Joint Stock