STI MYANMAR UNIVERSITY

Advanced Diploma in Business Management

BM: 3107 Advanced Organizational Behavior

“Study on Vietjet Airlines”

Submitted by

7 ADBM-3 Ma Yadanar Win

October 30, 2021

 Table of Contents

Contents Page number

Acknowledgement 1
The executive summary 2
Introduction - Mission, Goals and Core Values 3
Vietjet’s Behavior 4
Strategy for Business Development 5
Organizational Structure 6
Organizational Culture 7
Issues & Dilemma 8
Vietjet Overcoming the Challenges 9
Vietjet HR Policies & Practices 11
Vietjet’s Change Process 12
Conclusions and Recommendations 14
References 15
Acknowledgement
First and foremast, I would like to express our deep and sincere gratitude to our
teacher, Daw Sandar Oo, who gave me the golden opportunity to do this wonderful
project report. Now, I’m glad to do this report because I acquire a lot of knowledge
and how to apply the theories and concepts in the real world businesses.
This project report will not be done without the support of STI Myanmar University.
So, I would like to offer my sincere appreciation to my principal and school admins
(staffs) who provided continued support and the learning opportunities during this
COVID-19 pandemic.
Last but not least, I would like to thank my parents, and all of my classmates and
colleagues,who helped me a lot in finalizing this project within the limited time frame.
And their participation, support and encouragement when it most required.
My heartfelt thanks.

1
Executive Summary
Vietjet is an international low-budget airline from Vietnam founded by the talented
female leaders, Nguyen Thanh Ha(the chairwoman) and Nguyen Thi Phuong Thao
(CEO) in 30 November 2007. Vietjet, a joint stock company, was the first privately
owned new-age airline to be established. As of its launch in December 2011, it became
the second private airline to offer domestic service in Vietnam only after few years of
operations. The headquarters are in Ba Dinh District, Hanoi (the capital of Vietnam).
Vietjet Air is owned by Sovico Holdings, HDBank, other organizational investors, and
individual stakeholders. It’s 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 NewAge Airline model, such as
low cost but with superior service quality to meet 4.0 industrial standard and serve the
needs of diverse customers. With the slogan “Enjoy flying” Vietjet is a familiar brand
name to most domestics and international passengers who wish to travel by air. Vietjet
has made many Vietnamese citizens’ dreams of “flying by plane” come true. The
unbundled product and services policy make Vietjet fares more competitive. Vietjet
has expanded the route network throughout Southeast Asia and Northeast Asia with
139 routes, including 44 domestic routes and 95 international routes and cover over 70
destinations in 14 countries including China, South Korea, Japan, Hong Kong, Macau,
Taiwan, Indonesia, Malaysia, Myanmar, Thailand, India, Cambodia and Singapore.

2
Introduction

Vietjet Air has become the largest private airline to offer domestic services in
Vietnam. The airline’s goal is to make air transport more popular in Vietnam, the
region and worldwide. True to its motto “Enjoy Flying!”, the company’s mission is to
achieve customer satisfaction by providing outstanding services with a friendly smile.
By 2019, they keep up its core values of providing safety, happiness, with affordable
prices and punctuality to all its customers. The Vietjet is an official member of the
International Air Transport Association (IATA) with the IATA Operational Safety
Audit (IOSA). Since the first commercial flight, Vietjet has achieved important
milestones in the journey of conquering the sky and bringing innovation to Vietnam’s
aviation industry. Vietjet launched its first commercial flight from Ho Chi Minh City
to Hanoi. Vietjet Air focuses on five main business activities - air transport, ancillary
services, direct supporting services for air transport, aviation education and training,
and aircraft trading. In 2017, Vietjet had cooperated with Safran Group (France) to
develop and implement the program (SFC02) which offers specific solutions and
instructions in flight control, optimizing the capacity of aircraft engines and reducing
fuel consumptions. Vietjet implemented a lot of charity programs. In 2019, Vietjet
accompanied the “I Love My Fatherland Journey” which is an activity organized by
the Vietnam Youth Union with the companion of Vietjet. The journey was organized
in 63 provinces and cities with many meaningful activities to spread the pride of
historical values, national culture, patriotic traditional education, foster love for the
homeland for younger generations. Vietjet also seek for sustainable development and
implemented the CSR activities and CSR model - including legal, economic, ethical
and philanthropist activities, which made Vietjet as the global’s favorite airline.

3
Vietjet Airline’s Behavior

Firstly, Work behavior is one of the significant aspects of Human Behavior. Group
performance can be affected by individual’s behaviour in an organization. That’s why,
Organizational Behavior is important in business because it gives insight on how
employees behave and perform in the workplace. It helps to develop an understanding
of the individuals characteristics that can motivate employees, increases the individual
or groups performance, help businesses to establish a strong and trusting relationships
with their employees (the company’s most valuable assets) who are directly
connected with customers, and help businesses to reach their milestone. To decrease
the workplace deviant, make sure that the group norms do not support antisocial
behaviours. One of the Vietjet’s key resources are its qualified, outstanding,
experienced, young, active, and enthusiastic employees. The following are the some
of the Vietjet behavior towards organizations. Vietjet behavior towards employees -
Vietjet Air has always done a good job in motivating, empowering and retaining
employees. Vietjet has been rewarded for unrelenting commitments and efforts in
investing in human resources, improving well-being and engagement of employees, in
order to ensure the further success of the company. Vietjet Behavior towards nation -
Vietjet’s aircraft with the symbol "I love my Fatherland", all passengers and crew on
the flight were wearing shirts bearing that words, covered with Vietnamese flag’s
colors in the sky, which showed that the patriotism of Vietjet’s employees to everyone,
also affirming that Vietjet always aims to contribute to the society and the
development of homeland. Vietjet behavior towards customers - Vietjet always try
best to provide outstanding services to its normal passengers and special passengers
( children, the disabled, the elderly and the pregnant women, passengers with mobility
difficulties,etc) and in accordance with capabilities. For example, Freights and fees
for transport of tool aids serving shall be exempted for passengers who are children,
the disabled, the elderly, the pregnant women.

4
Vietjet’s Strategies for Business Development

Continue to expand domestic and international network, such as - open new routes
connecting different commercial airports and optimize frequency on local routes, set a
priority for markets in North Asia, Northwest Asia, ASEAN and China. Maintain
Vietjet’s strong brand and health related services develop reputation and credit with
passengers and partners as well as nurturing sustainable values for the company.
Develop new services and products on e-commerce platforms to enhance values and
benefits for passengers and bring economic benefits for the company. Diversify
capital portfolio from domestic and international sources to efficiently serve the
company’s financial activities. Implement supporting solutions to enhance the cost
management and deploy high-tech appliances for daily operations. Continually
develop the fleet, such as - new, modern and fuel- efficient aircraft. Participate in
various investment projects for terminals and airport infrastructure to enhance the
quality of service and cost management. Nurture an internationally integrated working
environment and continually implement resource development programs for the
company’s long-term development. The airline establishes close and tight business
relationships with two leading aircraft manufacturers - Airbus and Boeing. Vietjet is
able to purchase not only new but also modern and efficient aircraft with discounted
prices. They also follow the SFCO2 program, which optimizes engine performance,
reduces the use of fuel and greenhouse gas emissions, to save nearly 5.4 million
kilograms of fuel and protect the environment. This is a great move to show Vietjet’s
Corporate Social Responsibility (CSR) activities. Vietjet has strategies to provide
passengers with diverse in-flight services in order to increase ancillary revenue per
passenger and increase the proportion of ancillary revenue in total annual revenue.

5
Vietjet Organizational Structure

An organizational structure defines how job tasks are formally divided, grouped and
coordinated.

6
Vietjet’ Organizational Culture
Besides the business strategy, the strength of the business from the corporate culture
brings a competitive advantage to the development. Vietjet focuses on building the
Corporate Culture as an identity and deep trust to every employee. The dedication and
loyalty of each employee in the company, the teamwork spirit in every job and the
trust of employees in the decisions and policies of Vietjet. At that time, Vietjet’s
culture will make a difference and be a competitive advantage in the aviation industry.
Vietjet culture includes - safety first approach, integrity, innovation, inspiration,
hardwork, resourcefulness, happiness, strength, and dynamics. In Vietjet safety
culture - all leaders and staff members are wholeheartedly committed to safety and
quality policies. Their core values in the workplace and take full responsibility for
everyone’s safety. Safety and Quality assurance are essential to all of our aviation
activities, which will ensure the company sustainably development. Vietjet said that
“Our customers are the reason Vietjet exists and will continue to develop sustainably”.
Vietjet leaders and staff members are wholehearted committed to these elements.
Strictly complying to requirements outlined by CAAV and all relevant aviation
authorities. Applying quality management system in our quality management manual.
Ensuring that each Vietjet employee strictly complies with requirements and
regulations for all operations, maintenance procedures, and all other services, in an
effort to not only maintain but continuously improve Safety and Quality standards.
Providing all necessary and sufficient resources and meeting all other required
conditions for conducting policy and meeting targets. Continuously improving
management systems, creating a reliable working environment with our greatest
responsibility being to satisfy customers’ expectations. Establish a fluid information
system to ensure that all employees are informed about safety-quality data adequately
and in a timely manner.

7
Issues and Dilemmas faced by Vietjet Airlines
The aviation (airline) industry, is heavily influenced by the effects of social, economic,
political and world health situations, directly or indirectly. For example, current global
insecurities, uncertainty of fuel prices, cyclical trends of the economy, 'supply &
demand', global COVID-19 pandemic, and political tensions such as Brexit (the
withdrawal of the United Kingdom from the European Union), which is severely
impact on global businesses like pandemic, are all affecting aviation. Airline industry
was one of the economic sectors which are severely affected by the global pandemic
and Vietjet was no exception. Some of the issues are: competitiveness, fluctuations
fuel prices, economic growth and interest rate risks, labor unrest and the emergence
and substitutes of low-budget carriers. The airline industry in Vietnam is more and
more developing nowadays. The market of this industry has a great potentiality
because of the poor surface transportation infrastructure of Vietnam. The airline needs
to know which factors affect customer purchase intention. Vietjet airlines issues are
the following: Vietjet has had approximately seven incidents, five technical issues and
two subjective problems with its employees. VietJet crew and pilots sanctioned after
front wheel problems in hard landing. There was a "serious problem" during the
landing with the Airbus' "two front wheels”. The nose gear tires were shorn off as one
of the VietJet Airbus landed after from Ho Chi Minh City. Both nose wheels separated
from the nose gear strut causing the aircraft to skid to a halt on the runway about 1,200
meters (3,900 feet) down the runway. Luckily the aircraft safely stopped on the
runway at Buon Ma Thuot Airport, all 207 passengers were safe, but some were taken
to hospital before being discharged. Vietjet also had to face fuel system problems -
which made them to return to Ho Chi Minh City. Airline foundation was delayed for
increased fuel prices and other financial problems. As a low-cost carrier, Vietjet does
not have any direct booking capabilities with the Global Distribution Service (GDS)
companies. This lack of connectivity limits the ability of the airline to attract interline
connecting passengers for inbound and outbound flights.
8
How Vietjet Overcome the Challenges
After several delayed attempts, Vietjet began operating on December 2011. VietJet
had planned to utilize the AirAsia brand after receiving an investment from the
Malaysian low-cost carrier but went ahead with the VietJet brand after AirAsia was
denied regulatory approvals. The carrier operates services across Asia. On 2017,
VietJet Air became the first airline company in Vietnam to list on the stock exchange.
Vietjet has quickly established a strong and well recognized brand in Vietnam.
VietJet is working on launching a loyalty program, which should further
improve VietJet’s position in its region. VietJet is particularly keen to develop new
e-commerce platforms that will enable passengers to book flights and other items
using social media and partners such as Google and Facebook. They provide both
online and offline to access their website and the usage. Vietjet’s effective use of
social media, sponsorships and publicity stunts such as the inflight bikini show from
2012 (which was a hit on Youtube) have helped VietJet succeed in the domestic
market. VietJet also has a strong local distribution through a network of 1,300 local
agents. The travel agent network is key, as most passengers in Vietnam still use agents
rather than booking directly on the Internet. As the network of agents is managed
directly by VietJet without involving GDSs, the cost is low. VietJet also stopped
paying commissions to agents in 2015. It still pays incentive fees to agents, and those
fees account for approximately 0.3% of its total costs. However, this is manageable,
and VietJet’s total cost of distribution is very low, enabling it to keep its costs down
and offer very low fares. As Vietjet charges for extras such as checked bags, food,
drinks and seat assignments, it launched a premium product, SkyBoss, aimed at
business passengers with high-class services in 2015. Most low-cost carriers have to
meet maintenance, repair, refueling between each flight so that the aircraft can
quickly serve the next flight ( i.e., reducing waiting time and increase the aircraft's
operating time). This will minimize flight crew recruitment and training cost as well
as plane maintenance costs.
9
As a low-cost carrier, cost control is always an important goal to create competitive
advantages against other competitors in the industry. Major expenses for Vietjet are
fuel, aircraft rental, flight operation, ground handling, maintenance and technical
expenses, accounting for a large proportion of the Company’s cost structure. Vietjet’s
Cost per Available Seat-Kilometer (CASK) is currently the best in class, capable of
competing with well-known airlines in regional and global markets.

10
Vietjet HR Policies & Practices
Vietjet always focuses on the development of human resources policies and practices
because they knew that human being is a essential asset in the development and
success of the company. Vietjet creates good, healthy and professional working
environment for employees by adopting appropriate and constantly improved
remuneration policies, which help the company to attract top-notch talents in domestic
and international markets. In addition to basic benefits such as insurance, appropriate
holiday and annual leave, periodic salary review, bonus on performance every 6
months, etc. Vietjet also takes care of its employees and their family members by
offering free tickets - Staff Flight Coupon (SFC), networking and team building
activities, etc. VietJet's staffs are mainly aviation specialized such as managers, pilots,
aircraft technicians, flight attendants, ground staff, flight attendants are recruited in
the country and abroad. In addition to the available human resources, VietJet also
recruits from universities, colleges and other specialized aviation training institutions
from both local and international. Therefore, VietJet's staffs are recruited from more
than 30 different countries to fully meet the capacity and experience of aeronautical
specialties (especially pilots, aircraft maintenance engineers, cabin crews).
International human resources are focused to develop because their knowledge and
sharing, skills and experience can positively contribute to the rapid and sustainable
development of the company. Then, training policy is essential for quality
improvement of human resources, it is therefore among the top priorities at Vietjet,
meeting the needs of the company’s development and employee career orientation.
That’s why Vietjet established its training center in 2012. And in 2016, Vietjet and
Airbus made an agreement to provide flight and maintenance training services in Ho
Chi Minh City. In 2019, Vietjet continues to expand online training program with 544
courses, training 19,936 students, accounting for 59% of all training courses. This
training form is effective since it requires less time and costs.

11
Vietjet’s Change Process due to Pandemic
The year 2020 begins with enormous challenges when the Covid-19 pandemic
breaks out globally and impacted on every organizations. Vietjet’s had built strong
teams and helped every individual to understand the work teams effectively. They also
provide good communications services among all the people in the organizations
which is the another key resource to succeed. Their effective communication,
participation and better understanding of workplace helped to manage the risks and
also helped the people to overcome resistance to change, and correct use of Human
Resources. Vietjet’s team is always confident, optimistic and calm, turns risks into
opportunities, quickly implements a suitable strategy to the situation. In addition to
rescue flights for passengers in the affected areas, Vietjet has boosted its cargo
services, transported thousands of tons of essential goods, and medical equipment to
help prevent and control the epidemic. All passengers, crew, vehicles, aircraft are
absolutely safe. Along with that, Vietjet is focusing on improving the organizational
structure; enhancing savings, organizing work more scientifically to ensure workflow,
safety and life for officials and employees; deploys online courses for leaders and
employees; focuses on renewing aircraft fleets; reinforces all factors to prepare for the
leap after the pandemic. The sharing of Vietjet teams and support from shareholders,
investors during difficult period of early 2020, will be an important launching pad for
Vietjet to raise phenomenally after the pandemic. Vietjet always focuses on
strengthening the HR development and management, investing and building effective
training programs to its people. As soon as the epidemic spread, Vietjet launched the
Emergency Prevention and Control Committee on January 21, 2020 to organize a
campaign for foreign passengers to come home, ensuring that no guests were left
behind. All passengers, crew and aircraft are absolutely safe according to the
recommendations of the World Health Organization, the authorities of the countries
and the highest international standards in the prevention of epidemics.

12
Vietjet has provided many free flights for the delegations and the medical team,
showing a high sense of responsibility to the community. Vietjet has contributed a part
of its efforts to solve safe transportation for passengers and to control the spread of
disease. The Emergency Prevention and Control Committee continues to focus on
operating, service, financial matters. Facing the challenges of 2020, Vietjet’s
proactively implemented a series of drastic measures in its operational and business
activities to cope with and minimize the effects of the pandemic. Vietjet believes that
with the Government’s support with practical solutions, including easing monetary
policy, reducing interest rates, extending repayment periods, reducing fee taxes,
exempting / reducing import tax and Environmental taxes for flight fuel, reduced
take-off costs, etc. will help businesses and Vietjet maintain their operations and
stabilize their employees’ lives. These are the facts why Vietjet Air stood up
differently in global pandemic with no losses.

13
Conclusions And Recommendations
Vietjet Air has been and will always be the spirit of entrepreneurship, creativity and
dynamism to become the favorite new generation airline and the choice of many
passengers not only in Vietnam but also in the region. Vietjet continues its mission of
realizing the flying dream of the community, becoming the People’s Airline with a
super-economical price-saving strategy for passengers, constantly contributing to the
development of Vietnam’s aviation industry. Vietjet Air is a kind business with
government support and run ethically without harming the people nor the
environment. Vietjet Air is the best airline, but in my opinion, I want to recommend
few things
 Vietjet have to expand their route to other tourist attraction’s countries.
 Vietjet have to consider about their employees integrity - like air hostess wearing
bikinis in flight.
 Vietjet will give chances to choose their customers’ meals in both Halal &
Non-Halal.

 Vietjet have to refund money if the customers not use their requested products &
services.

 Vietjet have to focus deeply on customers’ changing trends and provides them
with quality products and services, which are more than they expected.

14
References
 Anon, (2021), VietJet Air - Wikipedia, http://www.en.wikipedia.org,
(Accessed Date: 25 October 2021)
 Anon, (2021), StuDocu, http://www.studocu.com,
(Accessed Date: 26 October 2021)
 Anon, (2020), Vietjet Annual Report 2019, http://www.ir.vietjetair.com,
(Accessed Date: 23 October 2021)
 Robbins,S.P.,et al, (2017), Organizational Behavior, 17 edn, New Jersey, Pearson
Education.

15