LOW-cost airline VietJet has soared ahead of its competition — after using bikini-clad flight attendants to capture the world’s attention six years ago.
The budget Vietnamese carrier’s market capitalisation took over its main rival, Vietnam Airlines, for the first time on Monday, just a week after the company was listed.
The firm caused controversy in 2011 when it released a series of images of women dressed only in bikinis as part of an advertising campaign.
It quickly became known as the “bikini airline” and female crew do still wear them on special flights.
VietJet’s market share is also expected to top that of Vietnam Airlines this year – a feat it has achieved by tapping into a fast-growing economy and a young population starting to travel more.
On its first trading day VietJet was valued at $1.4billion (£1.14billlion GBP) and its rival, which listed in January, at $2.1billion (£1.7billion GBP).
Brokers say the price of shares has been driven by growth in the Vietnamese market and a relatively small free-float in VietJet shares for retail investors.
VietJet has come a long way since its humble beginnings, with travellers flocking in droves to take advantage of low fares – the controversy surrounding its 2011 bikini shoot long faded.
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Six years ago, users took to social media to express their outrage at the photographs, which featured models posing provocatively while dressed in skimpy outfits.
Fast forward to present day as the CAPA Centre for Aviation has predicted VietJet will become the country’s biggest domestic carrier by the end of this year.
It currently commands 40 per cent of Vietnam’s domestic market.
The airline operates around 60 routes both domestically and internationally, and hopes to have a fleet of 200 planes by 2023.
Speaking on the firm’s potential for growth, Nguyen Van Dung, manager of the securities consulting department at Saigon Securities, said: “[The] VietJet story just begins so investors still have a lot of expectation on its shares.
“But if from investing perspective, I will buy Vietnam Airlines share as the firm has much potential to grow sustainably in [the] long-term and the price now is very good to buy,” he added.
Vietnam, which is steadily opening up its domestic market amid increasing investment interest, has completed a number of major share sales and listings in recent months.
Some analysts predict VietJet shares will jump to more than 143,000 dong (£5.13 GBP) per share in coming months.
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