VietJet Plans Australian Domestic Launch for 2027, Challenging Qantas and Virgin
Vietnamese low-cost carrier VietJet Air is filing for an Australian Air Operator Certificate and could begin flying the Sydney–Melbourne–Brisbane 'golden triangle' by the first half of 2027 with a fleet of ten Boeing 737 MAX 8s. Here's what a new domestic entrant could mean for inbound group programmes.
VietJet Air has confirmed it is pursuing an Air Operator Certificate (AOC) from the Australian Civil Aviation Safety Authority (CASA) with the intention of launching domestic services within Australia as early as the first half of 2027. If approved, the carrier will establish an Australian-registered subsidiary and begin operations with ten Boeing 737 MAX 8 aircraft, taking advantage of new takeoff and landing slots at Sydney Airport.
The initial network is expected to focus on the 'golden triangle' — Sydney, Melbourne and Brisbane — the three trunk routes that account for the bulk of Australia's domestic passenger volume and that have been dominated by Qantas, Jetstar and Virgin Australia since Rex withdrew its capital-city jet services. A third meaningful low-cost operator on these sectors would be the biggest structural change to the domestic market in more than a decade.
For inbound group planners the implications are worth watching now, not in 2027. Domestic sector pricing between Sydney, Melbourne and Brisbane has been a persistent pain point on multi-city itineraries — narrow-body capacity is tight in the shoulder seasons and last-minute group fares regularly move above AU$400 one-way. A credible third operator would ease both pricing and availability, particularly for the mid-size incentive groups (30–80 pax) that sit awkwardly between individual bookings and full charters.
Two caveats. First, CASA certification for a new AOC is a multi-year process and slot allocation at Sydney remains politically sensitive — the 2027 target is ambitious. Second, VietJet's Vietnamese operation runs a tightly-managed low-cost model with limited baggage, no meal inclusions and restrictive change conditions; any Australian subsidiary is likely to inherit the same commercial DNA, which suits FIT leisure travellers better than fully-inclusive group product.
Our recommendation for 2027 programmes currently in early planning: build costings around existing Qantas and Virgin group contracts, but keep VietJet on the watchlist as a genuine option for cost-sensitive shoulder-season departures. We will publish a follow-up once CASA confirms the AOC application has been accepted for formal assessment.