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Thai Vietjet reinforces operational Stability for Growth

Thai Vietjet A320

Thai Vietjet has put an enormous effort to improve its service operation to maximize customer satisfaction, including the self-handling for ground operation.

Bangkok, Thailand – Steadily heading into the second half of 2023, Thai Vietjet revealed its business and operation performances of the first half of 2023. As a result of the reinforcement of operational stability to improve OTP, service quality improvement, and network expansion to offer customers diversified flight connections, there was a 103.63% growth in revenue and a 10.12% growth in passenger numbers YoY.

Thai Vietjet Management

L-R: Mr.Woranate Laprabang, CEO with Mr. Pinyot Pibulsonggram, Director of Commercial

Reinforcing Operational Stability

Throughout the first half of 2023, Thai Vietjet has successfully reinforced its operational stability.

When the global tourism and hospitality industry began to bounce back to its pre-pandemic level and return to normal market conditions, many airlines and airports have been struggling with labor shortages due to the long and strict lockdown during the pandemic era, resulting in lower quality performance & negative passenger experience. In order to solve this issue and reinforce its operational stability, Thai Vietjet has put an enormous effort to improve its service operation to maximize customer satisfaction, including the self-handling for ground operation.

As a result of the capability in reinforcing operational stability, Thai Vietjet has succeeded in maintaining positive on-time performance (OTP), which is one of the most crucial indicators for airline’s successful flight operation. In Q2/2023, Thai Vietjet’s OTP is 82%, while the average OTP of Q4/2022 and Q1/2023 are 59% and 68% respectively. In terms of technical reliability rate, the airline remains 99.68%, which is considered a highly positive number in the aviation industry.

With the success in reinforcement of the operational and business stability, in H1/2023, Thai Vietjet saw significant growth in terms of passengers, with 10.12% growth in carried passengers YoY compared to H1/2022, with a total passenger number of 3.04 million. On the international network in particular, the airline obtained 884% of passenger growth on its international network, with over 729,000 passengers in the first half of the year. As of the end of June 2023, the airline has reached an accumulated passenger number of 21.54 million since the first flight operation.

Thai Vietjet has also expanded its operational capacity significantly in the first half of 2023. With a total of 18 aircraft in its expanding fleet of A320 and A321, the airline operates a total of 547 domestic flights and 190 international flights weekly, with an average domestic and international load factors of 85% and 77% respectively, enabling the airline to maintain the second position in terms of domestic market share.

In addition, Thai Vietjet has cooperated with Vietjet Group to maintain the top position of the flight service provider between Thailand and Vietnam. Since January 2023, Thai Vietjet and Vietjet Group operated over 4,200 flights between Thailand and Vietnam, and transported over 683,000 passengers on its extensive flight network between both countries, including flights between Bangkok – Ho Chi Minh City, Da Nang, Phu Quoc, and Ha Noi / Phuket – Hanoi / and Chiang Mai – Ho Chi Minh City. The number grew 446.36% and 1,332.37% YoY respectively.

In terms of revenue, in H1/2023, Thai Vietjet’s total revenue grew 103.63% YoY compared to H1/2022. The total revenue is basketed into 73.20% from air tickets, while ancillary and in-flight services contributed 26.72%.

Thai Vietjet Cabin Crew

Enhancing Service Quality, Leveraging Customers’ Experiences

With a focus on customer-centric strategy, Thai Vietjet places importance on leveraging its customers’ experiences and is continuously enhancing its service quality in all areas.

Thai Vietjet has activated various contact channels for direct interactions with its customers, including ‘Amy Chatbot’ – An artificial intelligence (AI) chatbot which can simulate instant conversation with passengers online for 24 hours. Passengers can virtually engage with Amy Chatbot to manage their booking or inquire necessary travel information conveniently. With Amy Chatbot, Thai Vietjet has been successful in leveraging its customers’ satisfaction. In H1/2023, the customer’s satisfaction rate was 90.0% compared to 83.0% in the same period of 2022, which increased by 8.43%, while the successful service rate of Amy Chatbot in H1/2023 and H1/2022 was 87.6% and 78.6% respectively, increased by 11.54% YoY. By the end of 2023, the airline aims to leverage the customer satisfaction rate and successful service rate of Amy Chatbot to 95.0% and 90.0% respectively.

In addition, Thai Vietjet has successfully reduced the call average wait time to 48 seconds (as of June 2023) on it Call Center, which improved by 240.43% YoY compared to 160 seconds in June 2022, while the average successful call rate of June 2023 was 95.32%, improved by 18.01%. With this high rate of successful calls, the airline saw an increase of 58.70% in revenue transaction made via its Call Center.

Early in 2023, the airline also introduced a premium lounge service at Bangkok Suvarnabhumi Airport, with the ‘Coral Executive Lounge’ by Coral Thailand, offering the best flying experience to passengers. The new lounge service is automatically offered to passengers holding Thai Vietjet’s SkyBoss tickets, while passengers holding Eco and Deluxe tickets can enjoy the lounge service at an affordable price by adding the lounge pass to their booking number while booking the air ticket. The lounge service has played a great role in improving overall service quality and customer experience, reinforcing its position of ‘hospitality airline with affordable services’.

Diversifying Connections and Services:

Thai Vietjet is moving forward with business and operational expansion, diversifying network connections to meet its customers’ demands.

Following its success in terms of network expansion in 2022, with a total of 5 new international service launches, including flights from Bangkok to Singapore, Fukuoka, Taipei, Phnom Penh, and Phu Quoc as well as the resumption of Bangkok – Da Nang service, in February 2023, the airline commenced flight service between Chiang Mai and Osaka, with the frequency of 4 round trips weekly. This new service remains the first and only scheduled commercial flight service connecting Chiang Mai and Japan.

In order to offer diversified flight connections to its customers, the airline introduced the ‘Sky ConX’ check-thru service, offering a wide range of seamless connections domestically and internationally via its operation base at Suvarnabhumi Airport. With the Sky ConX service, the check-in process is required once only at the first departure terminal, then passengers can conveniently receive their baggage at their end destinations. Currently, Sky ConX by Thai Vietjete offers seamless and easy flight connections from Phuket, Krabi, and Chiang Mai to Fukuoka, Taipei, and Singapore, and Da Nang also domestic connections between various major Thailand domestic destinations.

Furthermore, Thai Vietjet also cooperates with Vietjet Group, offering further connections from Bangkok to many international destinations, including Japan, Korea, and Australia, via Vietjet’s operation hubs in Vietnam, as Vietjet Group is rapidly expanding its flight network across the Asia-pacific region.

In addition to the Sky ConX, the airline also activated a virtual-interline network with airlines partners on Dohop’s virtual interline system, offering extensive flight service to various destinations around the world, including Australia, Korea, Norway, etc.

Thai Vietjet also offers customized charter service and has rapidly expanded its charter network. By working with its travel agency partners, the airline has recently successfully operated chartered flights to a number of locations, including Bangkok to Okinawa, Yangon, Ulaanbaatar, and many destinations in China.

In terms of fleet expansion, Thai Vietjet aims to add 2 more aircraft to its young and modern fleet, making a total of 20 A320 and A321 to support its expanding networks.

The Leader of Tourism Recovery

Thai Vietjet has taken on a leading position contributing to the recovery of Thailand’s tourism industry since the reopening of the international skies. In order to jointly promote both inbound and outbound tourism to Thailand, the airline has closely worked with and fully supported TAT’s travel promotion activities in Thailand and overseas markets, and formed various partnerships with hotels, land operators, and tourism organizations. Among these partnerships is with a collaboration with Skyfun Travel, a revolutionary online travel platform, to offer customers a wide range of value travel packages with high-quality services and products from both the airline and its partners.

Contribution to the Community

Over the past years, Thai Vietjet has launched various campaigns under the ‘Fly Green Fund’ as a contribution to society and the community. Fly Green Fund was founded in 2021 in collaboration with Seub Nakhasathien Foundation, with a core mission to raise funds to support environmental projects implemented by Seub Nakhasathien Foundation to protect the forest and endangered wildlife in Thailand. The airline since then introduced a wide range of campaigns, including Garbage Hunter, where the airline formed a group of volunteers to remove trash and garbage from places in Thailand, and ‘Metro Forest’, in which the airline aims to add more green spaces in Thailand’s urban regions.

As an air transportation service provider, Thai Vietjet has made continuous contributions to the sustainability of environmental protection, such as reducing pollution from daily operations and implementing numerous environmental protection measures that lessen the root causes of the global warming issue that humanity has been facing.

A Better Way Forward

Looking forward to the second half of 2023, digital service and operational enhancement remain Thai Vietjet’s most important focus to leverage its passengers’ flying experience. The airline will also focus on international expansion, which it has been actively studying the opportunities to operate new international routes across the Asia-pacific region and to introduce more flight connections to provide passengers with more flying opportunities.

By the end of 2023, Thai Vietjet targets 72% growth in total revenue, 9% growth in passengers, and remains the #2 player in the Thailand market. It expects to carry a total of 6.31 million passengers by the end of 2023.

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