The Australian airline industry could be in line for a major shake-up with Vietnamese carrier Vietjet applying to launch domestic flights.
The low-cost airline, which already operates international flights between Vietnam and Australia, has submitted an application to the Civil Aviation Safety Authority to compete directly with Qantas, Jetstar and Virgin on domestic routes.
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If approved, Vietjet would be the first airline to successfully challenge the domestic duopoly in more than a decade.
“We know that extra competition means better airfares and we will always advocate for that,” Melbourne Airport’s Lorie Argus said.
Since Ansett’s collapse in 2001, Australia’s domestic aviation market has experienced non-stop turbulence. Impulse was absorbed into Qantas and became Jetstar, while Ozjet came and went. Air Australia, Singapore’s Tiger Air and Bonza all failed to gain traction. Rex tried capital city routes but returned to regional services only.
Aviation experts say Vietjet is different from previous challengers.
“It’s a large airline already, well established and well backed financially, which most of the others didn’t have,” aviation analyst Peter Harbison said.
The opening of Western Sydney Airport in October is expected to help the airline’s prospects.
“The thing that would make it possible, whereas other airlines haven’t been able to make a go of it, is that now there are plenty of slots or should be plenty of slots available at the new Western Sydney airport,” Harbison said.
The Civil Aviation Safety Authority typically takes around six months to consider such applications from airlines.
Vietjet already operates domestic routes in Thailand and Kazakhstan.
“Having someone else come in and rock the boat would make a big difference,” concluded Harbison.
