Melbourne lands low-cost Vietnamese airline’s direct flights

A Vietnamese airline has struck a deal to begin direct flights to Melbourne, promising low-cost flights to Southeast Asia.

A low-cost Vietnamese airline has announced plans to operate direct flights between Melbourne and the Southeast Asian country.

On Wednesday, Vietjet signed a deal with Melbourne airport to add three return flights between Melbourne and Ho Chi Minh City from March 31.

The airline aims to increase its schedule to daily flights by December 2024 and will set up a national head office in Victoria.

The Victorian government expects the airline’s Australian operations to generate $97m annually once fully operational and add more than 136,000 seats between the two airports.

Trade and Investment Minister Tim Pallas said the low-cost airline’s launch was a win for the Victorian economy.

“The arrival of another airline from Southeast Asia is a win for the Victorian economy and local jobs – showing the strength of our tourism and export markets,” he said.

Vietjet will begin operating services to Melbourne Airport from March 31. Picture: NCA NewsWire / Nicki Connolly

Melbourne airport chief executive Lorie Argus said the new service would provide “low-cost” onward flight options to destinations including India, Japan and South Korea.

“We are thrilled to welcome Vietjet to Melbourne for the first time and to be part of their plans for expansion in Australia,” she said.

“Vietnam is both a really popular destination and an important source market, and the addition of Vietjet increases total Vietnam seat capacity this year to 153 per cent of what it was pre-Covid.”

From March 31, the airline says it will offer overnight flights between Melbourne and Ho Chi Minh on Tuesdays, Thursdays and Saturdays.

The company’s presence in Australia is expected to increase competition to destinations in Southeast Asia.

The Australian Competition and Consumer Commission last month warned airlines that it was monitoring the price of international flights amid observations the prices of flights were 33 per cent higher than in 2019.

The increase was attributed to a reduction in airlines flying to Australia and a lower volume of flights outstripping demand.