Vietjet seeks regulatory nod for Australian domestic airline venture: report

Vietjet Air is seeking regulatory approval to launch a domestic airline operation in Australia, a move that would make it the first international carrier to challenge Qantas and Virgin Australia directly in more than 10 years.

The Vietnamese low-cost carrier has applied to the Civil Aviation Safety Authority for an air operator certificate to establish a locally incorporated subsidiary, as reported by local Australian media. The proposed operation would use 10 Boeing 737 aircraft and fly under a different brand name, with routes connecting Sydney, Melbourne, and Brisbane.

A play for the Australian Golden Triangle

Based on reports, the Australian federal government has confirmed that a “new entrant” has requested 2,252 take-off and landing slots at Sydney Kingsford Smith International Airport (SYD), though it did not name the airline. Multiple outlets have identified Vietjet as the company behind the application.

Travel between Sydney, Melbourne, and Brisbane, commonly referred to as the Golden Triangle, makes up the most frequently flown routes in Australian aviation. The Sydney-Melbourne corridor alone is the sixth busiest air route in the world, according to aviation data provider OAG.

After Rex Airlines exited capital city routes in July 2024, average airfares on major city routes increased by 13.3% by September 2024, according to the Australian Competition and Consumer Commission (ACCC).

A challenging market for newcomers

Australia has proven difficult for budget airline newcomers. Singapore Airlines’ Tiger Airways Australia was absorbed into Virgin in 2014 and shut down in 2020. Bonza, a domestic budget startup, collapsed in 2024 after a rapid expansion. Rex itself entered administration before being acquired by US-based regional carrier AirT.

Vietjet, which became Vietnam’s first privately owned airline in 2011, has made network expansion a priority. It operates subsidiaries in Thailand and Kazakhstan and has a fleet of 135 aircraft, with 101 based in Vietnam. The company has orders in place for 100 Airbus A321neos and additional A330neos.

In 2025, Vietjet posted revenue of AU$4.4 billion (US$3.3 billion) with a pre-tax profit increase of 51%.

The carrier already operates daily return flights from Sydney and Melbourne to Ho Chi Minh City, along with five weekly services from Brisbane and three from Perth.

If approved, Vietjet’s Australian subsidiary would be the first international airline to compete directly in the domestic market since Tiger Airways launched in 2007.

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