VietJet is not yet launching a service in Australia. But according to several Australian and specialized media outlets, the Vietnamese low-cost carrier is indeed preparing a local offensive on the domestic market by 2027. And for tourism professionals, this is a matter that deserves serious attention now. Because if the project comes to fruition, it could put renewed price pressure on one of the world's most concentrated air travel markets.
At this stage, we must remain cautious. VietJet has not publicly announced a commercial launch with a firm date, and the Australian Civil Aviation Safety Agency (CASA) does not comment on individual cases. However, according to the specialized press, the company has begun the process of obtaining an air operator's certificate in Australia, with the aim of creating a local subsidiary operating low-cost domestic flights. The targeted routes would be the country's major hubs, including Sydney, Melbourne, and Brisbane.
Summary
Why the VietJet case is strategic
The most important point is simple: the Australian domestic market remains dominated by very few players. Qantas, Jetstar, and Virgin Australia hold the lion's share, in a context where recent attempts by new entrants have failed. Bonza collapsed in 2024. Rex, after trying to compete with the major carriers on long-haul routes, also went into administration that same year. In other words, the opportunity exists, but it comes with a very high level of risk.
This is precisely what makes VietJet interesting. The company is not looking at an easy market. It is targeting a space where supply is concentrated, where major routes remain structuring, and where new low-cost capacity could quickly have an effect on prices, market perception, and route planning.
The case gains even more weight when we look at OAG's data. The Sydney-Melbourne route is among the busiest air links in the world. For tourism, this means one very concrete thing: if VietJet ever injects capacity into the Sydney-Melbourne-Brisbane triangle, the impact could be felt beyond air travel, extending to city breaks, domestic packages, and the overall cost of tours in Australia.
VietJet is not starting completely from scratch
This project also needs to be viewed from a broader perspective. VietJet already has an international presence in Australia. The airline serves several major Australian cities from Vietnam, including Sydney, Melbourne, Brisbane, Perth, and Adelaide. This obviously doesn't guarantee the success of a domestic subsidiary. But it does mean that it already has a brand recognition base, a nascent commercial network, and a more nuanced understanding of the Australian market than a completely foreign player.
This is where the project becomes particularly interesting for tourism professionals. Because the real potential isn't limited to selling low-cost domestic flights. It also lies in the potential to better connect travel flows between Vietnam and Australia in the future, with more competitive domestic extensions.
What this could change for the destination Australia
If VietJet receives regulatory approval, several effects could emerge. First, increased pressure on fares on certain major routes. Second, greater flexibility for professionals assembling multi-city Australia packages. Finally, stronger indirect competition for established operators, who could respond with promotions, capacity adjustments, or enhanced loyalty programs.
For a travel agency or tour operator, the most appealing scenario is quite simple to understand. Currently, some Australia packages are still hampered by the cost of domestic flights. If a credible low-cost carrier manages to offer more capacity on major routes, certain packages could become easier to sell, particularly to younger, affinity-based, or leisure travelers on a tighter budget.
However, we must remain level-headed. The project is not yet for sale. Obtaining an AOC in Australia requires a thorough review of technical capabilities, safety procedures, operational organization, and financial stability. Therefore, this is a matter to monitor closely, not yet a new offering to be integrated as is into existing packages.
Why tourism professionals need to monitor it now
Because this type of move is never predictable at the last minute. If VietJet truly moves forward, those who adapt their monitoring, pricing strategies, and package deals first will have a significant advantage. And if the project fails, it will still serve as a useful indicator: that of an Australian market where competitive pressure remains high enough to attract new entrants, despite recent setbacks.
Let me be clear: the issue isn't simply whether VietJet will succeed or not. The issue is understanding what such an attempt reveals about the Australian market, its level of concentration, and the underlying need for new alternatives on major domestic routes. For tourism, this is already significant in itself.
If the deal goes through, Australia could experience its most significant competitive upheaval in years. And for travel companies, this kind of shift isn't something they just react to; it's something they anticipate.
Sources
https://www.ch-aviation.com/news/168924-vietjetair-eyes-australian-aoc-report
https://www.casa.gov.au/sites/default/files/2021-12/air-operators-certificate-process-manual.pdf
https://ablis.business.gov.au/service/ag/air-operators-certificate/141
https://www.oag.com/busiest-routes-world-2025
https://www.accc.gov.au/system/files/domestic-airline-competition-august-2024-report.pdf
https://www.vietjetair.com/en/flight-tickets/flights-from-australia
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