Vietjet (VJC) flies towards the global stage
Vietjet (VJC) flies towards the global stage
Today, on April 26, the annual general shareholders’ meeting of Vietjet Aviation JSC (HSX: VJC) has taken place successfully, with the participation of 91.74 per cent of shareholders who gave a high rate of approval for all motions on the agenda.
According to the report of Vietjet’s managing director Luu Duc Khanh, the representative of the Board of Directors, the company had a successful business year. Vietjet bought 17 airplanes, including the first A321 NEO in Southeast Asia.
The company’s operation costs are the most effective in the region currently, on account of its maximum savings principle. The aviation safety and ground extraction indexes are the best in the region, while the technical reliability rate reached 99.66 per cent, the highest level for an Airbus A320/321 fleet.
Vietjet is developing domestic flight paths and breaking open the North Asian market continuously. By the end of 2017 Vietjet had 38 domestic and 44 international routes. The airline operated 98,805 flights, transporting 17.11 million passengers, 22 per cent more than in 2016.
Along with services and auxiliary business activities, Vietjet continues having a bumper financial year. According to the audited financial report for 2017, Vietjet’s revenue hit VND42.303 trillion ($1.86 billion) and after-tax profit reached VND5.073 trillion ($0.223 billion), increasing by 54 and 73 per cent against 2016. Profit per share was VND11.356 ($0.5).
On February 28, 2017, Vietjet listed its VJC stock on the Ho Chi Minh City Stock Exchange (HSX), and the company’s management board committed to apply international-standard governance, operation, and transparency.
Based on the positive business results, Vietjet’s Board of Directors proposed raising 2017 dividends from 50 to 60 per cent, which shareholders approved. The company has paid 30 per cent of this in cash and will pay 10 per cent more by May 25. The 20 per cent remaining will be paid by shares.
This year, the company plans to earn over VND50.97 trillion ($2.25 billion) in revenue and VND5.8 trillion ($0.26 billion) in profit, increasing by 20.5 and 10 per cent on-year. Dividend in 2018 is expected at 50 per cent.
According to Vietjet’s assessment, the Vietnamese and regional aviation markets will continue growing sharply in 2018 as Vietnam is enjoying a very high GDP growth. The Vietnamese government also promotes tourism as a key economic sector and will attract millions of tourists to Vietnam.
Vietjet will continue expanding and increasing international flights to Japan, India, and Australia in order to become a multinational airline with global competitiveness and vision.
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