Vietnam Airlines seeks to lease new aircraft

Vietnam Airlines is exploring the possibility of leasing 20 to 25 Airbus A321neo aircraft, each with 240 seats, to support its return to low-cost air travel. The move is part of a broader strategy to diversify its operations and compete in a growing domestic market.

Return to low-cost model

The airline plans to operate two complementary brands: its traditional Vietnam Airlines and a new low-cost brand. This relaunch could begin as early as 2027, though details like the schedule and terms are still being finalized and may change based on market conditions.

Experience with low-cost operations

Vietnam Airlines already has experience with low-cost operations through its subsidiary Pacific Airlines. Previously known as Jetstar Pacific under a partnership with Qantas, it now operates independently after restructuring and returning its fleet to lessors. It resumed limited operations in 2026 with aircraft provided by Vietnam Airlines.

Growing competition in Vietnam

The domestic aviation market is becoming more competitive. As of October 2026, Vietnam Airlines holds 37% of domestic flight shares, compared to 40% for Vietjet and 15% for the newer low-cost carrier Sun PhuQuoc Airways. The rise of Sun PhuQuoc, launched in November 2025, highlights the increasing pressure on traditional carriers.

Rapid growth in air travel

Vietnam’s aviation sector has seen significant growth. Between January and September 2026, Vietnamese airports recorded nearly 102 million passengers, a 12% increase from the previous year. Domestic traffic rose by 11%, while international traffic grew by 14%, showing strong demand for both local and international travel.

Challenges ahead for Vietnam Airlines

Despite the growth, Vietnam Airlines faces challenges in implementing its two-brand strategy. The airline must secure the necessary aircraft, finalize delivery timelines, and define the network for its low-cost operations. These details remain to be announced, and the success of the relaunch will depend on how effectively the airline can adapt to market demands.