Vietjet presses on with Udon plans

Vietjet Thailand is preparing to ramp up its flight operations in the final quarter of the year, anticipating a surge in demand during the high season for both domestic and international routes. Despite challenges like volatile fuel prices and cautious traveler spending, the airline remains optimistic about its performance and continues to build a new regional hub in Udon Thani.

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The fuel price outlook remains volatile as the conflict in the Middle East continues, despite earlier reports of a US-Iran deal that temporarily eased prices.

CEO Woranate Laprabang acknowledged the ongoing volatility in fuel prices, partly due to the conflict in the Middle East, and noted that travelers are likely to remain conservative with their spending. Nevertheless, Vietjet Thailand expects a positive fourth quarter, leveraging Thailand's status as a leading tourism destination in Asia.

The airline is actively expanding its fleet, currently operating 11 Boeing 737 Max 8 aircraft and 23 Airbus A320 and A321 planes. By the end of the year, they aim to operate 25 Boeing 737s and four A320s, with an ambitious target of reaching 50 jets by 2028. While capacity on some routes, particularly to India and China, was reduced following the Middle East conflict, services have been partially restored and domestic capacity increased.

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He said travellers are expected to remain cautious with spending for the remainder of the year, particularly during the low season as many continue to adopt a wait-and-see approach.

Looking ahead, Vietjet Thailand plans to increase flight frequencies to Osaka and Tokyo for the upcoming cool season and launch a new route connecting Phuket, Taipei, and Fukuoka. A significant strategic move is the development of Udon Thani as a hub for the northeastern region, aiming to capture a larger share of the domestic market. Udon Thani airport, which handled over 2 million passengers last year, will also host a Horticultural Expo from November to March. The airline has introduced a new check-through service, "SkyConX," at Udon Thani airport for passengers traveling to Japan, Taiwan, and Vietnam via Suvarnabhumi airport, simplifying transit procedures.

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However, the airline still expects a positive performance in the fourth quarter, banking on the high season as Thailand remains Asia's leading tourism destination, said Mr Woranate.

Further enhancing connectivity, Vietjet Thailand plans to increase its Bangkok-Udon Thani service from two to four daily flights by September, potentially rising to five if demand is strong. The airline is also studying the feasibility of a direct route between Udon Thani and Ho Chi Minh City to boost two-way tourism. Mr. Laprabang also suggested that government incentives, such as reduced landing fees, and improved city facilities for foreign visitors would further support airlines and tourism.

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The airline wants to extend its check-through service to Khon Kaen and Surat Thani later this year.