Yet more evidence that budget airlines continue to fly high

We have recorded more than $5bn worth of deals since the global recession kicked in involving budget or low cost airlines, and their popularity continues to be demonstrated by growth in passenger numbers and revenue from existing low-cost carriers and the ongoing launch of new carriers offering new routes.

Today saw yet another press story reenforcing the fact that such companies continue to see growth and are planning accordingly. Luu Duc Khannh, the managing director of VietJet, Vietnam’s only privately-owned airline, said in an interview that the airline was considering an IPO within the next couple of years.

The airline was only launched in December 2011 and in the short time since its launch has taken significant domestic share and showed further growth when in February this year it began operating on routes outside of Vietnam. Low-cost airlines in Asia are relatively new when compared to, say, Europe and don’t seem to have yet managed to achieve the levels of notoriety that say EasyJet and Ryanair have managed, not just with passengers in their domestic markets, but with passengers from further afield.

If VietJet were to proceed down the IPO route, it would be the fourth South East Asian-based budget airline to IPO, following in the footsteps of Tiger Airways of Singapore, AirAsia of Malaysia and Nok Airlines of Thailand, that between them raised just under $700m in capital and with AirAsia and Nok Airlines completing their own IPO’s within the last 2 months. Resounding proof that even when economic times are shown to have improved, customers still like to take advantage of competitively priced fares in order to make their hard earned cash go further.

Filed under: airline, Asia, Deals, Europe, IPO, Vietnam, .