VietJet overtakes Jetstar Pacific as largest Vietnamese low-cost carrier

VietJet Air has announced a major network expansion that will make it Vietnam's largest low-cost carrier, overtaking Jetstar Pacific, by the end of 2012. VietJet is also poised to beat rival Jetstar Pacific in becoming the first Vietnamese LCC to operate international services. VietJet, which will expand its domestic network from five to nine destinations in Nov/Dec-2012, is looking at launching its first international route - possibly Ho Chi Minh-Bangkok - in late 2012 or early 2013.

Jetstar Pacific has been focusing this year on fleet renewal rather than expansion but is planning to resume expansion in 2013, ending a hiatus of four years in which growth was paused due partially to internal uncertainty. The carrier began a more promising new chapter earlier this year after a 70% stake was transferred to Vietnam Airlines, which previously had been looking at launching its own LCC subsidiary (Jetstar owns the remaining 30% stake in Jetstar Pacific). But Jetstar Pacific may struggle to keep up with much newer VietJet, which is likely to continue expanding at a faster pace than Jetstar Pacific.