Budget airline VietJet to fly out of Melbourne, rather than Avalon as promised in 2019

Avalon Airport has faced another blow in its bid to retain international carriers after a Vietnamese budget airliner reneged on a promise for Ho Chi Minh City flights.

A Vietnamese budget airline has decided not to run flights out of Avalon Airport as previously proposed.

Avalon Airport’s international ambitions have been grounded after it failed to lock in a Vietnamese carrier.

Vietnamese budget airline VietJet has announced it will run flights out of Melbourne instead of Avalon.

It comes after airline Air Asia pulled its Malaysian flights out of Avalon last year.

VietJet signed a deal with Melbourne airport this week to add three return flights between Melbourne and Ho Chi Minh City each week from March 31.

That leaves Avalon out of the race to be the airline’s Australian home.

In a source of good news, budget airline Bonza received regulatory approval on Thursday to fly domestically.

That airline has committed to operating flights between the Sunshine Coast and Avalon Airport but a start date isn’t locked in.

After three years working with the Victorian government and VietJet to offer international flights, Avalon Airport chief executive officer Tony Brun said on Thursday he was disappointed with the announcement.

“We will work with the Victorian government to ensure that all Victorians have a viable and competitive second airport,” he said.

“Greater airport choice for Victorians also opens up more capacity, competition and cheaper prices for both domestic and international passenger and freight services.”

VietJet plane in flight

Air Asia pulled out of its deal to run flights between Malaysia and Avalon last year, choosing to take its Kuala Lumpur flights to Tullamarine airport.

The airline ceased flights due to the pandemic and pulled out three years in to a 10-year deal.

Last year Avalon’s executive chairman David Fox said Air Asia was not welcome back.

“They are no longer our friend. That’s the harsh reality of it,” he said.

“You are either with us or against us. The reality is that we’ve got opportunities with people we trust; people that want to work with us.”

Last year VietJet was interested in running flights between Avalon and Vietnam and a spokesman said: “As we are working on the services’ details, we will get back to you with an official announcement soon.”

Avalon executive chairman David Fox said that Air Asia would not be welcomed back after they pulled out of a 10 year deal. Picture: Alan Barber

In October 2019, VietJet proposed Avalon flights to Vietnam could commence in late 2020.

The airline proposed four direct flights per week, to and from Ho Chi Minh City, which at the time would have become Avalon’s second biggest international route carrying 140,000 passengers a year.

Victorian premier Daniel Andrews visited VietJet’s headquarters in Ho Chi Minh City in 2019 and backed the possibility for Avalon to become Victoria’s gateway to Vietnam.

VietJet Air vice-chairman Nguyen Thanh Hung said at the time it was difficult to find slots at Tullamarine airport.

“At Avalon, it is easy for passengers to fly in and to connect (to other services),” Dr Hung said.

The Geelong Advertiser approached VietJet for comment.

Originally published as Budget airline VietJet to fly out of Melbourne, rather than Avalon as promised in 2019