CHANGE MANAGEMENT NAME OF TOPIC SOLUTIONS TO ENHANCE VIETJET AIRS QUALITY OF CUSTOMER SERVICE

Short overview of VietJet Air The first private airline in Vietnam, operating under the airline model since 2007, VietJet isofficially known as VietJet Aviation Joint Stock Company.. Cur

MINISTRY OF EDUCATION & TRAINING THE STATE BANK OF VIETNAM

HO CHI MINH UNIVERSITY OF BANKING

TABLE OF CONTENTS

Chapter 1 Overview of VietJet 5

1.1 Basic overview of VietJet Air 5

1.1.1 Short overview of VietJet Air 5

1.1.2 Vision 5

1.1.3 Mission 5

1.1.4 Core value 5

1.1.5 The process of creation and development 5

1.1.6 Incredible Achievements and Awards 7

1.1.7 Results of VietJet Air activities 7

1.2 Strengths and Weakness 8

1.2.1 Strengths 8

1.2.2 Weakness 9

1.3 Opportunities and threats 10

1.3.1 Opportunities 10

1.3.2 Threats 11

Chapter 2 Proposed changes 11

2.1 Reasons and motivations for change 11

2.1.1 Reasons for change 11

2.1.2 Motivantions for change 12

2.2 Contents and the change strategy 14

2.3 Purpose of the change 14

2.4 Content changes 15

2.4.2 Information on the timing and reasons for delays is provided to passengers promptly 16 2.4.3 Customer service during delays 17

Chapter 3 Benefits and desired results 18

Conclusion 19

References 20

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LIST OF TABLE

Table 1.1 Business situation of VietJet Air 8

Table 1.2 Net Revenue 8

Table 1.4 Consolidated profit 8

Table 1.3 Profit before tax 8

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MEMBERS OF GROUP

1 Huỳnh Lê Khánh Băng

030335190020 100%(Leader)

2 Đặng Thị Khánh An 030335190005 100%

3 Đinh Thanh Huyền 030335190082 100%

4 Ngô Thị Kiều Nhung 030335190191 100%

5 Quảng Thu Ngân 030633171044 100%

6 Lê Thị Hà Vy 030334180292 100%

7 Nguyễn Thị Minh Xoan 030334180295 100%

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CHAPTER 1 OVERVIEW OF VIETJET 1.1 Basic overview of VietJet Air

1.1.1 Short overview of VietJet Air

The first private airline in Vietnam, operating under the airline model since 2007, VietJet isofficially known as VietJet Aviation Joint Stock Company It offers a range of low-costservices for customers to choose from Through cutting-edge e-commerce technologysolutions, VietJet also meets consumers' needs for goods and services in addition toproviding the air transportation

Founded by the trio of T&C Group, Sovico Holdings, and HD Bank Ms Nguyen ThiPhuong Thao, a self-made Vietnamese woman millionaire and the CEO of VietJet Air, isthe one who is pushing for the creation of the airline

Currently, VietJet holds the Operational Safety Certificate and is a recognized member ofthe International Air Transport Association (IATA) (IOSA)

1.1.2 Vision

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-commerceplatforms; a trusted and highly prestigious brand in the eyes of travelers all over the world

1.1.3 Mission

- To continuously expand our flight network nationally, regionally and globally;

- To bring innovation to airline services;

- To make air travel the most popular form of transportation for Vietnamese and all people around the world;

- To bring happiness and satisfaction to our customers by offering outstanding

services, always with a friendly smile

1.1.4 Core value

“Safety - Happiness – Affordable Price - Punctuality”

1.1.5 The process of creation and development

November 2007: The airline was established with a 600 billion VND original charter capital

(equivalent to 37.5 million USD)

December 2007: The airline had a formal business permit.

December 5, 2011: Launched the first round of ticket

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December 24, 2011: First flight from Ho Chi Minh City to Hanoi

February 10, 2013: VietJet Air officially opened a route to Bangkok

June 26, 2013: In Thailand, VietJet Air created a joint venture for aviation.

October 23, 2014: Proud to be named one of Asia's top 10 airlines

January 31, 2015: welcoming the 10 millionth customer of the airline

May 23, 2016: Completed placing the purchase for 100 Boeing 737 MAX200 planes

November 8, 2017: Received new operator certificate in Thailand and announced Da Lat

and Bangkok routes

March 16, 2018: The opening of direct flights between Australia and Vietnam has been

announced by VietJet Air

In 2019: Opening more routes from Vietnam - Japan and becoming an official member of

the Economic Federation of Japan – Keidanren

- AirlineRatings.com, a famous organization that specializes in world safety and goods

of international airlines, has rated the airline safety of VietJet at the highest level in theworld with 7 stars

- Being one of the airlines that ensures steady employment for more than 5,000employees while also enabling the company to successfully execute the objectives set by theGeneral Meeting of Shareholders in 2020

In 2021:

- The 10-year anniversary of the first flight (December 24, 2011 - December 24, 2021)

- Receiving the first Airbus A330 wide-body aircraft

- Signing a strategic partnership agreement with Airbus on the implementation of a contract for 119 ordered aircraft and cooperation in developing a wide-body fleet

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1.1.6 Incredible Achievements and Awards

VietJet has consistently received the top rating in the world for aviation safety from 2018 tothe present, earning 7 stars from AirlineRatings, a prominent organization that specializes insafety and product evaluation of international airlines

Previously, AirlineRatings also rated VietJet as the world's best super-saving airline in 2020

A certificate of merit from the government awarded by Prime Minister Nguyen Xuan Phucfor their voluntary work

VietJet was recognized "The Best Low-Cost Airline with Cargo Operations" and "The BestCargo Airline of 2020" by Payload Asia Magazine

VietJet was recognized the 2019 Best Place to Work in Asia by HR Asia Awards

Ranked among the top 50 international airlines in 2018 for financial strength andperformance, according to Airline Journal

Many other achievements are recognized by organizations, such as: CAPA, World Airline Awards, Vietnam National Administration of Tourism, Vietnam Report,

1.1.7 Results of VietJet Air activities

The total revenue and profit after tax of VietJet in 2021 were VND 12,875 billion and VND

80 billion, respectively As of December 31, 2021, VietJet has total assets of around VND51,654 billion, a debt-to-equity ratio of only 0.9, and a liquidity index of 1.6, which ranks it

in the top quartile for the aviation sector

According to the financial report for the first quarter of 2022, compared to the same period

in 2021, VietJet recorded a growth of 113% in pre-tax profit thanks to the quick recovery ofthe passenger transport business and the continued expansion of the cargo transportationbusiness, with revenue growth in the first quarter of 2022 of 76% and 94%, respectively.VietJet reported consolidated sales of 4,522 billion dong and profit after tax of 244 billiondong in the first quarter of 2022, up 12 percent and 98 percent, respectively, over the sametime in 2021 Regarding air transportation revenue, VietJet earned VND 3,340 billion in thefirst quarter of 2022, an increase of 17% over the compared to the same period in 2021 Thishelped the airline generate an after-tax profit of VND 40 billion for the main business

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Year Net Revenue Profit before tax Consolidated profit

Table 1.1 Business situation of VietJet Air

Table 1.2 Net Revenue

1.2 Strengths and Weakness

1.2.1 Strengths

Market share leader: VietJet became the airline with the largest domestic market share in

2018 as a result of adding additional routes, increasing flight frequency, connecting routes,and reducing operational costs per flight kilometer Due to the introduction of a new airline,Bamboo Airways, the percentage reached 46 percent and was maintained in 2019 at 45.4percent The Covid-19 epidemic rapidly turned into a pandemic in the years 2020–2021, andVietJet immediately adapted to the new business environment, altering its market share aimwith safety and comfort for its owners, which importance comes first

Strategic relationships with partners: With a combined order volume of 371 new

generation aircraft, Airbus and Boeing are the two top airplane manufacturers in the world

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Airline service providers (ground services, airline meals, maintenance facilities), airports,travel agencies, and transportation services are examples of suppliers.

Activated resources: VietJet has been supported by a crew of 5,330 extremely highly

skilled and knowledgeable individuals during the Covid-19 storm

Scale advantage: VietJet can invest in important specialized technology programs like

AMOS, AIMS, AirFase, SFCO2, and Intellysis because of its scale and potential

In-depth service: VietJet is proactive in risk management, quality, and safety with

self-service at Noi Bai International Airport, designated check-in places, and gates at 2 mainairports, SGN and HAN highest ground services and essential customers

Diversified revenue: income is produced from a variety of sources, including supporting

services, commercial aircraft operations, air transportation services, finance, and otherprofits (translation services) promoting services, fixing airplanes, etc

Broad distribution channels: Customers from all around the world can actively register to

buy tickets and service services for themselves and their loved ones easily and quicklythrough OTA retail channels on e-commerce systems (both websites and mobile phones) orgeneral information channels 19001886 In addition, VietJet maintains a network of about40,000 agents as well as local retailers both domestic and international

Brand value: VietJet was recognized in the Top 50 Vietnamese Brands for the fifth

consecutive year, beginning with a brand value of US$108.9 million, almost twice as much

as the brand value originally released by Forbes in 2016 ($63.4 million) This may includethe stock's current valuation and the investor's outlook for VietJet

CASK (Cost per Available Kilometers - Total operating cost on rotating seats) Lowest:

VietJet may set a policy of selling tickets for less than the going rate because of its lowoperational cost per seat every flight kilometer, which increases revenue while maintaining

a healthy profit The benefit of scale will help VietJet actually reduce the CASK in thefuture because its weapons system develops

New fleet: The fleet, which consists of 18 A320s, 38 A321ceos, 19 A321neos, and 1 A330,

is brand-new, modern, younger, and synchronous

1.2.2 Weakness

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Business alliance strategy: Despite having discussions with a number of LCC companies inAsia since the company's start, it currently does not have a joint venture partner The onlyconnection at the moment is some commercial potential that cannot be realized (inThailand) With just 3 airplanes and 3 content stores, Thai VietJet is a little airline.Furthermore, it competes hard in the Thai market Although VietJet is a latecomer and thebrand is not well known, Thailand is a market that is growing quickly The extension ofbrand strength outside of Vietnam has been limited by this.

Sale and leaseback operations (sale and sublease): This practice supports VietJet in earningquick profits The airline will eventually have to pay higher than usual rental fees as the life

of the airplane lengthens, turning it into a weakness over time

The company's brand and distribution network are strong in Vietnam, but they are stillunderdeveloped elsewhere Outside of Vietnam, things are radically different; VietJet is anew brand partner that not many people are aware of

Overcrowding and flight delays: In April 2022, VietJet Air's correct time rate was 92.4percent, down 5.4 percent from the previous month, according to the Civil AviationAuthority of Vietnam

1.3 Opportunities and threats

1.3.1 Opportunities

Vietnam is emerging as a popular tourist destination, the number of visitors has surpassed

10 million This trend is expected to continue This is an opportunity for VietJet

Currently, the airline has regular flights to Korea, Taiwan, Malaysia, Thailand, and Cambodia

China is the largest source of tourists and the fastest growing

Moreover, the geographical location of Vietnam is very convenient for transportingpassengers from Southeast Asia to Northeast Asia

Since Vietnam is still developing, many people prefer and are more ready to pay for cost airlines This is also why VietJet Air, a youngster, overcame Vietnam Airlinesregarding market share in the previous two years

low-After the Covid-19 epidemic was contained, customer demand for air travel increased thanks togovernment and state policies and initiatives like discounts on specialized aviation services,fees, and charges; a slight drop in the environmental protection tax on jet fuel; refinancing

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support; and an extension of the tax payment timelines (VAT, corporate income tax, etc.).provides VietJet with a great chance to overcome obstacles and create support for recoveryand development over the ensuing years.

1.3.2 Threats

The competitive environment in the aviation industry is increasingly fierce LeadingSoutheast Asian airlines such as AirAsia and Lion are planning to set up joint ventures inVietnam Many low-cost airlines also see the potential of our country's market and are eager

to jump in

Slowing growth in the domestic market will pressure VietJet to rely more on theinternational market, which is not easy Besides, the growth of domestic tourism demand iscurrently 4-5 times higher than GDP growth, which is an unsustainable rate

Customer demand is increasing, consumer behavior often changes, and fuel prices areconstantly increasing

Airport overload makes it difficult to open more routes and flight frequency

People's incomes have significantly decreased as a result of COVID-19's effects on theglobal level, and as a result, there is a tendency to cut back on superfluous consumption,including the desire for overseas tourism

Effects of fuel price volatility and the protracted war in Russia and Ukraine According to aVietJet Air representative, the airline would develop its business plan for 2022 based on abarrel of petroleum costing USD 80 VietJet Air will spend an extra 6,500–7,500 billionVND due to the current price of gasoline

CHAPTER 2 PROPOSED CHANGES 2.1 Reasons and motivations for change

2.1.1 Reasons for change

Although low-cost airline VietJet Air can generate better profits than traditional airlines,businesses also encounter many scandals and complaints about VietJet's services According tothe information of many passengers of VietJet Air, customers are very frustrated becauseVietJet's flight is delayed for many hours as well as the service attitude of VietJet Air's groundstaff "Delay to many hours, to ask the staff, the attitude is very uncomfortable" It is importantthat VietJet Air does not notify, does not explain nor apologize to passengers for the incident,

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