VietJet, Vietnam's largest LCC, is looking to enter Australia's domestic market with its own airline. The plan: apply to Australia's Civil Aviation Safety Authority (CASA) for an AOC (Air Operator's Certificate), set up a separately branded local subsidiary, and deploy up to 10 Boeing 737 MAX 8s to take on the \"golden triangle\" linking Sydney, Melbourne, and Brisbane. It would be the first time an international carrier has made a serious push into Australian domestic flights in about 19 years, since Tiger Airways in 2007. The launch target is said to be as early as 2027, but at this stage it's still just an application, not a done deal. For Japanese who routinely use VietJet for travel, living, or business in Vietnam, this move carries a fairly practical meaning: when heading to Australia via Vietnam, you might be able to connect cheaply on the same airline all the way down to local domestic travel. Let's read through it step by step.<\/p>\n
According to Vietnamese reports, Vietjet has applied to CASA for an AOC. An AOC is the \u201coperating seal of approval\u201d essential to carry passengers commercially in a given country. To fly domestic routes in Australia, Vietnam\u2019s home license is not enough; a subsidiary incorporated in Australia must obtain a local AOC. For that reason, the plan is being pursued by setting up a local company under a brand separate from Vietjet proper. CASA takes the position that it \u201cdoes not comment on airlines\u2019 business plans,\u201d but several industry sources confirm the application exists.<\/p>\n
The fleet deployed will be up to 10 Boeing 737 MAX 8 aircraft. Vietjet has already ordered 151 737 MAX-family jets worldwide, so the aircraft backing is there. The intended routes form the so-called 'Golden Triangle' linking Sydney, Melbourne, and Brisbane. Among them, the Sydney\u2013Melbourne route is said to be the sixth busiest in the world and the most profitable segment in Australia. Vietjet is also moving to secure slots at Sydney Airport, reportedly applying for 2,252 takeoff and landing slots at Kingsford Smith International Airport \u2014 enough for seven to ten round trips a day with the 737.<\/p>\n
Australia's domestic market has long been effectively a duopoly between full-service Qantas (which owns the budget brand Jetstar) and Virgin Australia. Challengers have tried to break in before, without success. Rex Airlines, which served regional routes, ran into financial trouble in 2024, and the LCC startup Bonza suspended operations that same year. VietJet at one point considered entering by taking over Bonza's AOC, but the deal fell through, and this time it has chosen to pursue an AOC from scratch on its own.<\/p>\n
Fewer competitors mean higher fares. After Rex withdrew, the average fare between major cities was reported to have risen 13.3% by September 2024. Flip that around, and more room has opened up for LCCs that compete on price. VietJet is known for a classic unbundled fare structure that includes only the seat and personal items in the base price, charging separately for checked baggage, seat selection, in-flight meals and the like. A structure that slashes the base fare and lets only those who need them buy options can be a strong weapon against Australia's domestic routes, where prices have stayed high.<\/p>\n
For those used to traveling in Vietnam this may need no explanation, but Vietjet is Vietnam's largest LCC, with a broad domestic and international network and, above all, frequent sales that produce astonishingly cheap fares. Seating is high-density and in-flight service is paid by default. On punctuality, cleanliness, and staff response it is widely rated as adequate for an LCC, and on safety it ranks among the top 'safest LCCs' in third-party assessments, reportedly holding the highest safety rating since 2018. Its overall service rating is in the three-star class, positioning it as an airline you use pragmatically for its low prices.<\/p>\n
At the same time, the weaknesses are clear. Many say its ability to cope with cancellations or major delays falls short of a full-service carrier. It has little cushion for the \"what ifs\"\u2014rebooking onto other airlines or arranging a replacement aircraft\u2014so when trouble hits you need to be ready to sort things out yourself. That trait should carry straight over to Australia's domestic market. The trade-off for a cheap fare is that the peace-of-mind premium for delays isn't included\u2014that's the practical way to see it.<\/p>\n
This is the main point. VietJet already operates international routes from Ho Chi Minh City to Sydney, Melbourne, Brisbane and Perth. It has laid out a plan to reorganize its Australia services around Ho Chi Minh City in the latter half of 2025, increasing Sydney and Melbourne to daily flights in winter. In other words, the route from Japan to Australia via Vietnam can already be built with VietJet alone.<\/p>\n
If Australian domestic routes are added on top, it opens the possibility of, say, entering on \u201cJapan \u2192 Ho Chi Minh City \u2192 Sydney\u201d and then connecting onward from Sydney to Melbourne or Brisbane all within the same Vietjet family, and at LCC prices. In Australia, where people move between cities by plane rather than rail, these domestic fares heavily shape the total travel cost. The more cheaply you can lock in the Vietnam-originating flight, the bigger the benefit. On the subject of travel tips, within Vietnam too,How to buy summer rail tickets at 10% off<\/a>, tricks that change the cost by timing and how you buy pay off. On Australia's domestic routes too, the same mindset of chasing early sales should serve you well.<\/p>\n That said, to repeat, the launch is not confirmed. Reviewing an AOC generally takes 6\u201312 months, and CASA looks at financial soundness in addition to technical and safety matters. Australia has a relatively open regime for the ownership and control of domestic companies, so the startup after approval could be quick, but even so, the earliest you could realistically plan an itinerary is the first half of 2027. Be precise on this point: you can't build a plan around \"VietJet for Australian domestic flights too\" just yet.<\/p>\n We have laid out the main Vietjet routes usable for heading from Vietnam to Australia at this point. From Japan, a connection at Ho Chi Minh City is the basic route (service status varies by season).<\/p>\nVietJet's current Vietnam-Australia routes<\/h2>\n