Skip to content
General

Jetstar adds low-cost services between Australia and Vietnam this summer

By Minjun ParkAustralia
2 min read
jetstar
jetstar
In this article (5)

The Qantas unit hopes to break the monopoly currently held by national carrier Vietnam Airlines, which is also a Qantas partner. Australia’s trade and tourism ministry on Wednesday announced two low-cost direct services from Melbourne and Sydney to Ho Chi Minh City by Jetstar Airways.

The new services will take off in May this year, Assistant Minister Keith Pitt told a meeting with local media in HCMC.

Jetstar Airways, a wholly owned subsidiary of Australia’s Qantas Airways, will operate the flights four times a week from Sydney and three times weekly from Melbourne using the Boeing 787 Dreamliner.

Ticket sales began in January. Flights from Melbourne to HCMC will be launched on May 10, and flights from Sydney will commence one day later, subject to regulatory approval.

“These flights will stimulate inbound tourism, business and trade to Australia. In the last 12 months, there has been a 21 percent increase in visitors from Vietnam to Australia and we expect to see that grow with the introduction of our low fares on the route,” Paul Rombeek, Jetstar Group’s Global Head of Sales, told the press.

The new flights from Australia to HCMC by Jetstar Airways would link up to 15 domestic destinations from HCMC thanks to daily services operated currently by Vietnamese domestic partner Jetstar Pacific, Jetstar Group Chief Executive Jayne Hrdlicka said in a statement.

Jetstar Pacific, 70 percent owned by flag carrier Vietnam Airlines and 30 percent by Qantas, is growing rapidly in an attempt to fend off a competitive threat from domestic budget rival VietJet, she said.

Vietnam Airlines and Qantas last year said they would invest $139 million to more than double the size of Jetstar Pacific’s fleet to 30 aircraft by 2020.

Jetstar’s non-stop flights from Australia to Vietnam will break a monopoly of direct services held by Vietnam Airlines, said the report.

More than 320,000 Australian visitors came to Vietnam last year, up 5.6 percent against 2015. The figure in the first three months this year was over 95,000, up 3.4 percent, according to data of the Vietnam National Administration of Tourism.

Questions & Answers

Q.

Which airline previously held the monopoly on direct services between Australia and Vietnam?

A.

National carrier Vietnam Airlines held the monopoly on direct services. Jetstar's new non-stop flights from Australia to Vietnam are intended to break this arrangement.

Q.

What is the frequency of the new Jetstar services from Melbourne and Sydney to Ho Chi Minh City?

A.

Flights from Sydney will operate four times a week. Services from Melbourne will run three times weekly, using the Boeing 787 Dreamliner for both routes.

Q.

How will Jetstar's new international flights connect to Vietnamese domestic destinations?

A.

The new flights to HCMC will link to up to 15 domestic destinations. This is possible through daily services operated by Vietnamese domestic partner Jetstar Pacific.

Q.

What is the ownership structure of Jetstar Pacific?

A.

Jetstar Pacific is 70 percent owned by flag carrier Vietnam Airlines. The remaining 30 percent is owned by Qantas, making it a joint venture.

Reader pulse

Will Jetstar's new services succeed?

21,289 votes so far

Weekly Briefing

Asia's retail intelligence, in your inbox

Tuesday, Thursday and a Saturday Weekly Wrap: the retail stories, numbers and moves that mattered across Asia. Nothing else, and you can unsubscribe in one click.

  • Top industry moves and market shifts
  • Weekly data-driven analysis from across Asia
  • Tuesday, Thursday and the Saturday Weekly Wrap

Read by retail operators, investors and brand teams across Asia.

Protected by a quick human check. No spam, ever. Unsubscribe in one click.

SecureGDPR ready