Australia-Vietnam growth rate to accelerate: Jetstar Airways and Vietnam Airlines launch new routes
The Australia-Vietnam market will experience a surge of capacity over the next few months as Jetstar Airways launches services to Ho Chi Minh from Melbourne and Sydney and Vietnam Airlines adds Sydney-Hanoi. There will be 24 weekly flights from Australia to Vietnam in Jun-2016, all with 787s, compared to only 14 weekly flights currently.
Jetstar Airways has not served Vietnam since 2012, when it dropped Darwin-Ho Chi Minh service. However, Vietnam is a strategically important market for the Jetstar Group, given its 30% stake in the fast growing Vietnamese LCC Jetstar Pacific. Vietnam Airlines owns a majority 70% stake in Jetstar Pacific and has a codeshare partnership with Qantas, although will compete with Jetstar in the Australia-Vietnam market.
Australia-Vietnam is a growing market with tremendous potential. However, the sudden influx of capacity will inevitably pressure already low yields. Load factors on Australia-Vietnam nonstop flights, which have improved significantly since Jetstar’s withdrawal in 2012, will also be pressured.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.