Vietjet Aviation (Bikini Airlines) Secures $100 Million Funding for Expansion
Vietjet Aviation, the budget carrier controlled by Vietnam’s self-made female billionaire, Thi Phuong Thao Nguyen, has announced that it has secured a $100 million funding commitment to support its fleet expansion. This development comes as the airline experiences robust post-pandemic earnings recovery and continues to expand its international presence. Preliminary agreements were signed with three Vietnam-based institutional investors during the third quarter, with the investment transaction expected to be completed this quarter. The funding will facilitate Vietjet’s investments in new aircraft, network expansion, and overall growth.
Vietjet Aviation “Bikini Airlines” has reported strong financial results in the first nine months of the year, reflecting a significant recovery from the impact of the COVID-19 pandemic. VietJet, the budget airline often referred to as the “Bikini Airlines” due to promotional stunts featuring models in two-piece swimsuits, the company’s consolidated net profit increased by 30%, reaching 55 billion dong (approximately $2.3 million). Consolidated revenue also saw a substantial rise of 23%, reaching 14.2 trillion dong. These impressive financial figures illustrate the resilience and adaptability of the airline during challenging times.
In response to the post-pandemic travel rebound, Vietjet has been actively expanding its international destinations. Notably, the airline has significantly increased its presence in Australia, now serving Adelaide, Brisbane, Melbourne, Perth, and Sydney. Additionally, Vietjet has extended its reach to destinations in Hong Kong, South Korea, and Taiwan. These new routes have played a pivotal role in boosting international passenger traffic, accounting for 57% of the group’s revenues.
To support its growth and expansion plans, Vietjet has placed a substantial order for 200 Boeing 737 MAX aircraft, valued at $25 billion. These modern and fuel-efficient planes will be delivered over the next five years, providing the airline with a reliable and versatile fleet to meet increasing demand in the Asian market. The order for Boeing aircraft demonstrates Vietjet’s commitment to delivering a safe, efficient, and comfortable travel experience for its passengers.
The $100 million funding commitment from the three Vietnam-based institutional investors will be instrumental in enabling Vietjet to realize its ambitious growth plans. The funding will support the acquisition of new aircraft, expand the airline’s network, and facilitate overall business development. While the names of the investors were not disclosed, their support signals confidence in Vietjet’s potential and its role in driving the recovery of the aviation sector in Vietnam and the broader Southeast Asian region.
In addition to the recent $100 million investment commitment, Vietjet has secured $550 million in aircraft financing from Carlyle Aviation. This substantial financing will further strengthen the airline’s financial position, ensuring it has the necessary resources to continue its expansion and meet the growing demand for air travel in the post-pandemic era.