Group assignment vietjet air corporation

Vietjet AIR Managerial Analysis - Alpha Memes [ Group Assignment]
Introduce Management (MGT103)

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Hồ Chí Minh, ngày 22 tháng 03 năm 2021

Group Assignment
FPT University
Course: MGT103
__________________________

Vietjet Air Corporation
Member information

Student Code

Full Name

SS160071

Trương Nguyễn Nhật Vĩnh

SS160063

Nguyễn Gia Bảo

SS160106

Trần Trân

SS160046

Trần Chính Phát

SS160645

Nguyễn Trịnh Minh Khơi

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I.

Introduction about the history of the organization/corporation and aspects

related to their managerial functions.

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Vietjet Aviation Joint Stock Company is the first private airline in Vietnam. Not only air
transportation, Vietjet 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).

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Vietjet is ranked among the highest in the world with 7 stars by AirlineRatings.com, a
prestigious organization specializing in assessing the safety and products of global airlines.
Meanwhile, AirlineRating also awarded Vietjet with the award "Best Low-Cost Airline 2018 2019". According to Airfinance Journal, Vietjet is in the top 50 global airlines in terms of
operation and financial health in 2018.

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Vietjet Air is one of the main three airlines of Vietnam, operating with the slogan: “Save
More, Fly More.” Customers can totally trust because this famous airline is in the top 20 of
leading brands in 2015 and gets the most precious prize awarded by the Government. Vietjet
Air has extensive global network flight for domestic and international tourists.
History:

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VietJet Air was established from 3 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 approved 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 is the first private
airline in Vietnam.

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According to the original plan, VietJet Air planned to officially go into operation at the end of
2008, but due to fluctuations causing the price of gasoline and oil to soar, VietJetAir decided
to postpone it until November 2009. At the end of April 2009, Sovico Holdings acquired all
of the shares of T&C Group and became the largest shareholder, owning 70% of VietJetAir's
shares.

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In February 2010, Air Asia acquired a 30% stake in VietJetAir. Air Asia is another low-cost
airline based in Kuala Lumpur, Malaysia, specializes in providing domestic and international
flights and is Asia's leading low-cost airline.

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In May 2011, Mr. Tran Minh Trung, nephew of Mrs. Nguyen Thi Phuong Thao, acquired 90%
of VietJetAir's shares and transferred control to Mrs. Thao. Therefore, Mrs. Thao continued to
hold her position CEO VietJetAir until now. Mr. Tran Minh Trung is a famous young
businessman in the South, Head of Communication and Events Department of Topica Group
in the South.

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II.

The Organization’s Environment.
A. GENERAL:
1. Economic Dimension:

Vietnam is the country with the fastest urbanization rate in Southeast Asia (about 3.4% / year). As of
2015, the number of urban areas increased from 420 (1995) to 775 areas and the total urban area also
doubled from 836,117 to 1,642,420. The transportation between urban and rural areas creates demand
for air travel between provinces in Vietnam. Data from CAPA shows that the domestic passenger air
transport market in Vietnam has increased from 12 million passengers in 2012 to 28 million
passengers in 2016, equivalent to a compound growth rate (CAGR) of 23.6. %/year.
Vietnam is considered a country with a lower level of economic development compared to other
economies in the region. Therefore, Vietnam is expected to have better growth potential. Vietnam's
economy in recent years has made great progress. The Vietnamese economy is changing its
appearance, infrastructure has been upgraded, investment has increased. With the speed of economic
development, the demand of people has also increased, including the need for travel. High-income
earners have an increasing demand for air travel.
2. The Policy and Legal dimension:
The ASEAN Open Skies (ASEAN Open
Skies), which aims to work towards
ASEAN

aviation

market,

has been

approved since 2016. The agreement is an

important element for the region's aviation
industry. Eliminating the majority of
barriers on the number of routes and flight
frequencies between international airports
in ASEAN countries. Specifically, the "
removes the 3rd, 4th, and 5th commercial
rights restrictions for airlines designated
by the signatory and ASEAN member
states.

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IATA and Bloomberg believe that competition in Vietnam's aviation industry will increase, but at the
same time airlines will also benefit from the increased number of passengers due to more flexible
flights between regions. In particular, the low-cost airlines in the region will benefit the most from this
agreement thanks to the short flight distance (within 3-4 hours) and increased pressure on traditional
airlines.
B. TASK:
1. Competitors:

The Civil Aviation Authority of Vietnam was born in 1956. However, it has just developed for about
10 years. Up to now, Vietnam's aviation market has the participation of nearly 70 foreign airlines from
25 countries and territories, 5 domestic airlines: Vietnam Airlines, Vietjet, Jetstar, Bamboo and Vasco.
Data from the Civil Aviation Administration of Vietnam shows that the number of aircraft has
increased from 60 in 2008 to 221 in 2019.
Domestic market share, Vietjet accounts for the largest market share with 41.7%, followed by
Vietnam Airlines with 36.3%, Jetstar with 13.7%, Bamboo with 6.5%, and Vasco with 1.8%.

2.

Suppliers:

Selection of the most modern aircraft Boeing 737 MAX 200, Airbus A321, Airbus A320, and
A320 neo are Vietjet Airs' advantage over competitors in its ability to fly long distances, save energy,
safety, and the new fleet of aircraft is always attractive for a better experience. for customers' options.
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C. INTERNAL
1. Mission:
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Effectively exploit and develop the domestic, regional and international flight network

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Offer customers breakthrough in aviation services.

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Make aviation services a popular means of transportation in Vietnam and internationally.

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Bring joy and satisfaction to customers with luxurious, outstanding service and friendly
smiles.

2. Vision: Vietjet Air strives to become a multinational aviation group with a wide network in
the region and the world, developing not only aviation services but also providing consumer
goods on e-commerce platforms, brand loved and trusted by customers.
3. Slogan: “Save more, Fly more”
4. Business Model: Business to Consumer
Vietjet is based on the low-cost airline business model with specific features such as point-to-point
flight, focusing on operating short-haul routes with high frequency, focusing on cost control and
web-based distribution channel. To create a difference in the quality of products and services provided
to customers, Vietjet continuously makes innovation and has succeeded in building a New Age
Airline model: low cost but with superior service quality to meet 4.0 industrial standard and serve the
needs of diverse customers.

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III.

Organization Structure and Design Analysis and Organization Change and

Innovation
1. Board of Directors:

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Madame NGUYEN THANH HA - Chairwoman

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Madame NGUYEN THI PHUONG THAO - Vice Chairwoman and CEO

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Dr. NGUYEN THANH HUNG - Vice Chairman

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Mr. LUU DUC KHANH - Managing Director

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Mr. DINH VIET PHUONG - Vice President in charge of Business Development

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Mr. DONAL JOSEPH BOYLAN - Independent member of the BOD

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Mr. CHU VIET CUONG - Chairman of the Insurance Committee

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2. Organization Structure and Design:

Function of some Department:
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Internal Control: is responsible for
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Figuring out risk management policies, processes and programs at the Company,

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Building indices related to the business operations of the Company.

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Reporting on units needing to be recovered and track the recovery.

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Advising BOD on the approval of appropriate policies and orientations relating to the
management of risks

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Safety, Security, Quality & Assurance Departure:

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Ensure that the aircrafts are maintained periodically and meet flight safety standards

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Strictly manage the implementation of the plan.

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Manage safety issues related to weather factors.

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Effectively use quality management, data analysis and safety management systems to
ensure proactive safety.

3. Organization Change and Innovation: Vietjet strives for market change in online
trading
Following the trend of cashless payment, Vietjet acted as the pioneer in online trading in the
Vietnam market and has successfully changed the customer’s behaviour through years.
Before Vietjet’s entry into the market, the online flying-ticket buying rate in Vietnam was just
below 8%, and online payment was much less. Now, this cashless figure has occupied 99% of
Vietjet revenues. In 2019, the total cashless revenue of the whole system of Vietjet reached
2.5 billion USD, an increase of 25% compared to 2018.

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Vietjet has continuously developed online payment systems for customers through credit
cards such as Visa, Master, JCB, Amex, domestic debit card, E-banking, connecting with
more than 40 banks in Vietnam and other countries. Besides, Vietjet also launched many
attractive and regular promotions. For example, with the program "12 pm, It's time to Vietjet",
customers who visit Vietjet's website to buy tickets and pay online right away will get a lot of
promotional tickets.
Vietjet have greatly contributed to form customer habit of online buying and online payment
keep Vietnam catch up with international market.
Deputy General Director of VietjetAir Nguyen Thi Thuy Binh has commented on the seminar
"Cashless Society”: “Vietjet not only changes people's perceptions and air travel habits but
also changes customers' consumption behaviours, striving to act as a "catalyst for market
change".”

IV.

Human Resource Management and Recruitment/Training functions in the

Organization
1. Human Resource Management
Vietjet always focuses on the human resource development force, in which humans are the
key companion along with the development and strength of the Company. Equal remuneration policy
is appropriate and is constantly being improved, Vietjet has been creating a good working

environment, healthy and professional for workers as well as increasingly attracting quality human
resources high at home and abroad. Vietjet employees in addition to guaranteed basic welfare regimes
such as insurance, Tet holidays and appropriate annual leave, salary increase accordingly periodically,
consider rewarding KPI every 6 months ... still enjoy policies that show public concern to employees

as free flight ticket policy fees for employees and relatives (SFC program), the networking and team
building activities …
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Total number of employees of Vietjet as of December 31, 2019 is 5,092 employees, up 29.3%
compared to 2018. During the year, Vietjet was recruiting 1,154 new personnel including 284 pilots,
861 continued staff and other personnel at the Director, manager and personnel levels staff at the same
time developing internal human resources through the appointment of 78 new titles.
Percentage of foreign workers accounts for nearly 22% of the total at Vietjet, up to 79% are
Vietnamese. These are the teams of pilots, flight attendants and other experts with extensive
experience in the same fields participate in working, collaborating and learning in the environment
Vietjet, creating diversity in nationality, culture, and bronze time is a human resource to be focused on
developing share and develop knowledge, skills and experience, contribute positively to rapid and
sustainable development of the Firm.
High-quality labor for the air transport industry, especially skilled pilots and technicians are
very lacking and highly competitive in the country and the country the labour force leads to
job-hopping. So, to avoid the shortage of manpower, Vietjet organized deployed a series of solutions
to increase efficiency results of human resource management including construction and perfecting
mechanisms and policies for remuneration, evaluation and rewarding employees, implementing the
standardization recruitment process, training, transfer, appointment, performance assessment,
according to market principles and weight using talented people.

In order to build human resources to meet strategic tasks and anticipate opportunities, Vietjet
has proactively planned human resources at all levels through recruitment, training, policy and
remuneration, and promotion. spiritual and material life for all staff in order to create a healthy and

professional working environment for employees, attracting high quality human resources at home
and abroad. Vietjet also actively implements professional training programs and practical programs to
improve management experience and build partnerships with high-quality universities such as Ho Chi
Minh City University of Technology. Ho Chi Minh City, Hanoi University of Science and Technology,
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Vietnam Aviation Academy aims to actively recruit human resources who have graduated from these
universities. and skilled technicians are in short supply and highly competitive domestically and
internationally, leading to job hopping. The average rate of employees quitting their jobs at Vietjet has
not been high in recent years.
Vietjet pays special attention to promoting diversity and equality of opportunities during its
operations, in which female employees are always interested and encouraged to improve their
qualifications in completing tasks. In the workforce structure, the proportion of female employees
accounts for 37.5% (an increase of nearly 4% compared to 2018), and women also account for 34%
(an increase of nearly 5% compared to 2018) in the management team. VietjVietjet's executives pay
special attention to promoting the diversity and equality of opportunities in the process, in which
female employees are always interested, encouraged to improve their skills in completing tasks. In the
workforce structure, the proportion of female employees accounts for 37.5% (an increase of nearly
4% compared to 2018), and women also account for 34% (an increase of nearly 5% compared to
2018) in the management team of Vietjet.

Vietjet also implements activities to ensure a fair and non-discriminatory working
environment, all employees have the opportunity to promote regardless of gender, starting point,
social class, etc. regions. Salary, bonus and remuneration are based on performance at work to help
motivate employees to maximize their capacity.

2. Recruitment/Training Function

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Training is an important policy to help improve the quality of human resources, and is one of
Vietjet's priority policies for employees, meeting the development needs of the Company and the
career orientation of employees. In 2019, Vietjet trained more than 93,000 hours for pilots, 344,000
hours for flight attendants, 125,000 hours for technical staff and more than 100,000 hours for Vietjet
staff. Vietjet continues to expand and upgrade the form of online training, which is considered
effective, saving time and costs with 544 courses, training 19,936 trainees, reaching the rate of 59%.
In addition, on the occasion of signing a contract to order 20 new A321neo ACF aircraft on October
31st, Vietjet signed to invest in 2 more simulated cockpit training for pilots, engineers ..., for the line
aircraft A320 / A321, bringing the total to 3 simulated cockpits invested by Airbus for Vietjet's
Academy and helping the airline increase on-site training productivity as well as training for third
parties in the near future. support from Airbus, Vietjet provides the most advanced training solutions
to ensure safety, reliability and operational efficiency throughout the life cycle of aircraft lines. Airbus
will also support Vietjet through many comprehensive and detailed training programs for pilots,
apprentices, flight attendants, operating engineers, and aircraft maintenance and repair specialists.
Training is an important policy to improve the quality of human resources and is one of
Vietjet's priority policies for employees, meeting the development needs of the Company and its
employees, specifically:
· Ensuring stable employment for employees;
· Career orientation & promotion opportunities expansion future careers of employees at the
Company;
· Give employees peace of mind, trust, and long-term commitment with work;

· Motivating employees to improve productivity, job and labor quality.
The goal of the training is to ensure that human resources with professional qualifications and
skills meet the requirements of the aviation industry and are associated with the Vietjet Development
Strategy to ensure stable jobs for employees. , improving the stability and quality of the workforce
according to the standards of their current titles.
In 2019, Vietjet organized 1,327 Initial, Periodic, and Level Up training courses for 47,109
times of Vietjet internal trainees, students of member companies, Vietjet's ground service companies,
... . In which, organizing initial basic training courses and providing resources for Vietjet's Operations
Division are as follows:
· 19 Experienced Pilot Courses with 236 trainees;
· 6 new pilot courses (cadet) with 151 students / 6 courses elevating the ranks to 62 captains,
· 44 new flight attendant courses with 892 students / 11 courses for 187 the flight attendant.
· 3 staff of aircraft maintenance engineering with 87 student
· 5 ground staff courses with 71 trainees
· 2 staff courses for flight dispatching with 46 trainees
· Organized 23 courses "Culture integration of Vietjet" for 1,435 students and 51 courses
"Enter aviation industry" for 1,018 new employees of the Company.

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· ICAO English proficiency assessment organization for 149 crew members Completed
drafting and editing 102/122 spears professional training process.
Vietjet also continued to expand its online training form, which is considered to be effective,
time-saving, and cost-effective with 544 courses, training 19,936 students, reaching the rate of 59%.
The training and development of teachers is interesting by Vietjet, currently there are 125

full-time and part-time teachers with full training capacity to meet the labor needs of the aviation
operation fields.
In addition to Vietjet maintaining the approval of qualified organizations to train and train for
the Air Force and Ground Service Division, and the training equipment, in November 2019, Vietjet
continued to coordinate with Airbus has been successfully approved by the Level 2 Pilot Class 2
Training Organization issued by the Civil Aviation Authority of Vietnam (CAAV) and the European
Aviation Safety Agency (EASA), which guarantees pilot training. stable and save cost as well as time.

V.

Operations, Quality, and Productivity Management, System, and Control:

VIETJET AIR’S SMART STRATEGY
The airline model that Vietjet created is a hybrid between low cost and traditional, called "new
generation aviation". Vietjet manages to optimize operating cost management, including costs of
aircraft, ground services, engineering, and costs of manpower, technology application. to reduce
human costs. But unlike the low-cost model, Vietjet has its own services, such as the skyboss service
with a lounge, shuttle bus, and more options for premium services on the flight to target a wider
audience. including customers with high payment ability.
Vietjet is operating a smart strategy in Finance. Its financial model is a copy of that of some
fast-growing airlines like AirAsia, Indigo and Lion Air: buy aircrafts in large quantities, negotiate to
reach better technical support and prices than other competitors, then create a aircrafts rental to
finance and leaseback companies from these companies. This is an effective financial model, ensuring
the airline has a new and synchronized fleet of aircraft without having to bear the burden of debt.

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Many people believe that Vietjet is facing both challenges in the domestic and international markets,
especially in the context of the slow development of aviation infrastructure and the possibility of
overload, however Ms. Thao - CEO of Vietjet - considers this as an opportunity. She said Vietjet
would invest in airport infrastructure if given the opportunity.

VIETJET AND THE USE OF SPECTOS
Professional customer service is the key to Vietjet's success in the competitive landscape of the
domestic aviation market. With the collection of huge amounts of data from airport service quality
assessments, the employees at Vietjet Customer Service Department encountered many difficulties in
data analysis.
●

Spectos Real-Time Performance Management - The perfect solution for Vietjet

Real-time performance RTPM solution helps Vietjet manage performance, monitor activities as well
as make continuous improvements in real time. Spectos' ability to customize and design the RTPM
suite solution according to internal control procedures is an important requirement of Vietjet including
regular inspection, continuous data collection and classification, evaluation, assignment, monitoring,
data processing and reporting.
●

Excellent service for passengers and Vietjet Air

After the success of a 3-month testing program in Tan Son Nhat airport, Vietjet decided to apply
Spectos for the entire system and at all 32 international and domestic airports of the airline.
All data on airport service quality assessment is recorded through the online rating panel and
immediately transferred to Vietjet's Customer Service Center. In which, each failed assessment in the
process automatically constituted a finding on the system and passed to the designated responsible

person.

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All evaluation results are analyzed automatically and displayed on the screen of the online report and
used as KPIs to evaluate the performance of each airport. This made access to critical information
faster and clearer, shortened problem-solving times and improved service quality at all airports.

VI.

Leadership, Vision, and Strategic Management
1. LEADERSHIP:

Leadership characteristics of Mrs NguyenThi Phuong Thao
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Extrovertive

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Sociable, sincere

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Conscientious

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Eager to learn, progress

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Confidence and energetic

Leadership Styles:
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Caring about people:

At the APEC CEO Summit 2017 (APEC CEO Summit 2017), Mrs Thao once shared with thousands
of global CEOs that she "considers the company as her child, and considers employees as relatives".
The evidence is that last Lunar New Year, she cooked some traditional meals to serve her employee,
which not every CEOs gonna do for their staff.
From these small things, she gains her employee’s trust day by day. Mrs Thao is quite focused on
people, her desire is not to be called a billionaire, but to improve the country economy, as well as
raising the average salary for its own employees. One key to the success of Mrs. Thao is to lead
employees with love.
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Dare to think dare to do:

As a rare female CEO of the industry, Ms. Thao is considered to be "changing the aviation market".
Instead of seeing airplanes as luxury, Mrs Thao considers traveling by plane as simple as buses and
taxis, so she wants to bring planes to places where this kind of thing is not popular. Ms. Thao goes on
to create a hybrid model between low cost and traditional, called "new generation aviation".

Vietjet uses optimal operating cost management, including costs of aircraft, ground services,
engineering, and labor cost, technology application. to reduce human costs. But unlike the low-cost
model, Vietjet has its own services, such as the Skyboss service with a lounge, shuttle bus, and more
options for premium services on the flight to target a wider customers, Including customers with high
payment ability.
Vietjet’s goal is to make luxury air travel simple, so that everyone and visitors can experience it.
Vietjet Air is continuing to pursue the goal of building a multinational aviation corporation with a
global stature. Many plans to open more domestic and international routes and expand to Europe and
the US market have been announced.
2. VISION:

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Vietjet has affirmed its role as a new-generation airline, always pioneering the latest best, pioneering
in administrative reform and improving service quality; pioneering investment in modern and
advanced aircraft, equipment and infrastructure; pioneering in recruiting talented human resources
towards sustainable values for the community, shareholders and investors.
- Vietjet wants to become a global airline group with an extensive regional and worldwide flight
network, providing not only airline services but also consumer services across advanced e-commerce
platforms; a trusted and highly prestigious brand in the eyes of travelers all over the world.
- Continuously expand our flight network nationally, regionally, and globally;
- Provide innovation to airline services;
- Make air travel the most popular form of transportation for Vietnamese and all people around the
world;
- Bring happiness and satisfaction to our customers by offering outstanding services, always with a

friendly smile
3. STRATEGIC MANAGEMENT:
●

Technology:

Selection of the most modern aircraft Boeing 737 MAX 200, Airbus A321, Airbus A321, Airbus
A320, and A320 neo are Vietjet Airs' advantage over competitors in its ability to fly long distances,
save energy, safety, and the new fleet of aircraft is always attractive for a better experience. for
customers' options.
●

Human Resources:
1. Case management

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The employee's information included in the profile management system will be classified as
follows:
- If it is the notice of the employee's retirement, death or some reason not working in the
agency anymore, but there is information related to the unit, then switch to the function
Update record to save information to the repository. records.
- The information about new employees entering the company will be transferred to the
function of Update profile to bring information to the Profile store. If there is a change in
information about an employee's profile in the system, the record update function will process

and amend accordingly, after modifying accordingly, it will be put into the file store.
2. Salary management
- Acupuncture function will perform timekeeping for employees each month and it receives
information from agents outside the staff.
- The Allowance function will add the employees to be subsidized and the allowance
information is put into the Allowance store.
- The Salary function takes data from the Attendance and Records warehouse to calculate the
salary for employees each month, then put them into the Salary warehouse.
3. Disciplinary Reward Management:
- During work, Employees in the agency who work well or have mistaken will have
Commendation or Discipline.
4. Search, statistics
- Search Statistics receives the lookup needs of the staff and requested information of the
Board of Directors, the function will search and classify information.
- Upon receiving the requested information, the Reporting and Statistics function will classify
the information and determine to get the data in the warehouse to process.
●

Operational control:
At Vietjet, Safety, Security, and Quality Assurance (SSQA) are always at the top priorities of

flight operation management. Vietjet proactively enhances aviation quality - safety - security through
excellent resources management, efficient use of quality management systems, data analysis systems
and safety management systems. Throughout the years, Vietjet has been proud to be the leader in the
application of flight data analysis system and actively partners with Airbus to implement Safety
Management System, meeting aviation safety standards in accordance with the regulations of the
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International Civil Aviation Organization (ICAO), aviation authorities, associations, alliances to
which Vietjet is a member to minimize potential risks, preventing incidents that may occur in
operation activities.

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References
-

Thị Phương Thảo, N. (2021). “Chuyện khởi nghiệp của "nữ tướng" Vietjet: Gác lại giấc mơ làm

cô giáo, kiếm 1 triệu USD ở tuổi 21, trở thành nữ tỷ phú đầu tiên của Việt Nam”. Vietnam: CAFEBIZ.
-

VietJet. (2019). “Báo Cáo Thường Niên 2019”. Vietnam: FlyGreen.

-

Quang Toàn. (2020). “Vietjet nỗ lực cho sự thay đổi của thị trường”. Vietnam: BIZ NEWS.

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VietJet. (2018). “Fly With Floral Dream, Annual Report 2018”. Vietnam: Vietjet Corporation.

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Andre, O. (2019). “Vietjet announces order for 100 Boeing 737 MAX aeroplanes (80 MAX 10

and 20 MAX 8)”. Belgian: Aviation 24.
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