Vietnamese low-cost carrier Vietjet has applied to the Civil Aviation Safety Authority (CASA) to operate domestic flights within Australia, potentially shaking up an airline market long dominated by Qantas, Jetstar, and Virgin. The airline already flies internationally between Vietnam and Australian cities.
Application Details and Potential Impact
Vietjet's application, if approved, would mark the first successful challenge to Australia's domestic duopoly in more than a decade. Melbourne Airport's Lorie Argus said, "We know that extra competition means better airfares and we will always advocate for that." CASA typically takes around six months to process such applications.
History of Failed Challengers
Since Ansett's collapse in 2001, numerous airlines have attempted to enter the domestic market but failed. Impulse was absorbed into Qantas and became Jetstar; 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.
Why Vietjet May Succeed
Aviation analyst Peter Harbison noted, "It's a large airline already, well established and well backed financially, which most of the others didn't have." The opening of Western Sydney Airport in October is expected to improve prospects, with Harbison adding, "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."
Global Operations and Future Outlook
Vietjet already operates domestic routes in Thailand and Kazakhstan. Harbison concluded, "Having someone else come in and rock the boat would make a big difference."
