Ground Services Implementation at Tan Son Nhat: Nguyen Thi Phuong Thao’s Airline Saves Up to 500 Billion a Year?

Saigon Ground Services JSC (SAGS) announced the termination of its contract providing ground services for Vietjet Air at Tan Son Nhat International Airport. Vietjet will self-manage these services, potentially saving hundreds of billions of VND annually. In 2024, Vietjet contributed approximately 600 billion VND to SAGS’s total revenue of 1,518 billion VND, accounting for 39%, primarily from Tan Son Nhat. Losing a significant client like Vietjet is expected to seriously impact SAGS’s revenue, leading to a sharp drop in SGN shares. In response, SAGS is seeking new clients and developing additional services. Additionally, SAGS established Saigon Long Thanh Ground Services Co., Ltd., with a registered capital of 333 billion VND, to develop ground technical services at Long Thanh Airport.