HANOI (Bloomberg): Vietnam Airlines JSC is seeking up to 25 Airbus SE single-aisle jets for its re-entry into the low-cost air travel segment as soon as next year, according to people familiar with the matter.
The national carrier of Vietnam has started sounding out aircraft leasing companies for 20 to 25 A321neos that can seat 240 passengers for the relaunch of its venture, said the people, who asked not to be identified, sharing confidential information.
The airline earlier this year secured approval from shareholders for a new medium-term strategy which includes running two airline brands offering full-service and a budget offering.
The carrier’s plans and timeline for the new venture aren’t finalized and could be subject to further changes, depending on market conditions, some of the people said.
Vietnam Airlines didn’t respond to requests for comment.
Vietnam’s fast-growing economy is fueling ambitious expansion plans from airlines like Vietjet Aviation JSC to Sun PhuQuoc Airways - both backed by parent companies with investments in real estate and finance.
The rise of newer and more nimble competition is pressuring Vietnam Airlines, which had a 37% share of the domestic air travel market in October, according to Cirium flight scheduling data. Vietjet had a 40% share and Sun PhuQuoc, which only launched in November last year, has already carved out 15%.
Vietnam Airlines’ endeavors in the no-frills space started back in the 1990s with Pacific Airlines, which was rebranded as Jetstar Pacific as part of a joint venture with Qantas Airways Ltd. It reverted to Pacific Airlines when Qantas withdrew from the partnership and currently runs skeleton services. --With assistance from Nguyen Dieu Tu Uyen. -- ©2026 Bloomberg L.P.
