Vietnam Airlines & Bangkok Airways respond to rapid Thailand-Vietnam LCC growth with new partnership

Bangkok Airways and Vietnam Airlines are planning a new codeshare partnership which will significantly bolster their position in the fast growing, but intensely competitive, Thailand-Vietnam market. The two airlines are ideal partners as Bangkok Airways is expanding in Vietnam by focusing on niche secondary routes, while Vietnam Airlines only serves the core Hanoi and Ho Chi Minh to Bangkok routes.

Capacity in the Thailand-Vietnam market has increased by approximately 30% over the past year, and has nearly doubled over the past five years, driven by rapid LCC expansion. Five LCC groups now serve the Thailand-Vietnam market, compared to just one five years ago. Thailand-Vietnam has become the first and only country pair within Southeast Asia with five LCC competitors.

VietJet has particularly emerged as a strong competitor, using its Thai affiliate to launch new Thailand-Vietnam routes and offer domestic connections beyond Bangkok. Rival Vietnam Airlines will be able to offer its passengers similar connections under the new Bangkok Airways partnerships, as well as a nonstop product on Bangkok Airways' growing network of niche Thailand-Vietnam routes.