As one who lives in the region, it has been excruciating to watch the glacial pace many Asia-Pacific airlines are adopting when it comes to adding capacity. Some of Asia's biggest carriers are still holding back capacity, which keeps fares high, as they complain about not having enough aircraft or staff available.
According to the Association of Asia Pacific Airlines (AAPA), the region's airlines are offering just 62% of the capacity available in March 2019. Thankfully the situation is taking on more urgency in Australia and New Zealand, where the arrival of major Chinese carriers is starting to add more seats quickly.
Vietjet is grabbing the opportunity to lead
At the other end of the spectrum is Vietjet, which has already announced it's adding more capacity after just three weeks of operating from Vietnam to Australia. VietJet launched flights from Ho Chi Minh City to Melbourne on April 8th, to Sydney on April 13th, and will start flying to Brisbane in June. The initial Melbourne and Sydney routes are operating with frequencies of three return flights weekly, while the Brisbane route is scheduled for two per week.
Last month, Vietjet Vice President Quang Xuan Do traveled on the inaugural Sydney flight, and he told Simple Flying that the airline already had plans for daily services in 2024 and is studying opportunities for flights to Adelaide, Perth, and Canberra. He also told us:
"The Australian market is a very similar market for the Vietnamese traveler and after COVID-19 pandemic recovery more and more Vietnamese and Australian passengers are traveling. So we see after COVID-19 this is a good time for Vietjet to start the flights."
This morning, Vietjet announced those plans have already been shredded and that it is adding a fourth flight between Ho Chi Minh City and Melbourne and Sydney in September. No grand plans or elongated studies were needed as Vietjet saw the demand in the last few weeks and from its bookings and acted on it.
It gave a very simple explanation that the extra flights were "to service increased demand from passengers traveling between Australia and Vietnam to visit relatives, travel and study abroad."
Find more news about Asian aviation here.
Price competition is on the way back
The other benefit is that with more capacity comes price competition, which has not been seen in this region for quite some time. It seems that airlines are happier to talk about their high passenger load factors than ticket prices, which have got so high that people are delaying travel and, in Australia, forcing regulators to threaten action against airlines. That is starting to change, and its hats off to the low-cost carriers, like Vietjet, who are getting ahead of the curve and building market share.
From September 17th, flights from Melbourne Airport (MEL) will depart at 00:30 every Monday, Wednesday, Friday, and Sunday, arriving in Ho Chi Minh City Airport (SGN) at 06:30. The return service will depart SGN at 10:55 on Tuesday, Thursday, Saturday and Sunday and arrive in Melbourne at 22:35.
The Sydney flights to SGN will operate on Monday, Tuesday, Thursday, and Saturday at 11:15 and land in Ho Chi Minh City at 16:30. The return service will depart SGN at 19:30 on Monday, Wednesday, Friday, and Sunday and arrive in Sydney Airport (SYD) at 07:20 the following day.
Australians can access promotional fares on the Vietjet website every Monday, Tuesday, and Wednesday, including ECO Class return fares from AU$200 ($132), including taxes and fees, on routes connecting Ho Chi Minh City and Melbourne, Sydney, and Brisbane until October 25th, 2023.
That's why the tickets are being snapped up and why Vietjet is adding more flights. All seems rather simple, doesn't it?
Have you flown with Vietjet to or from Australia? Let us know in the comments.