Intensified Rivalry in the Budget Airlines Sector Signaled by Airbus Agreement
VietJet Air, the Vietnamese low-cost carrier, has made a significant stride in its strategic expansion with a substantial order for Airbus A321neo and A330-900neo aircraft at the 2025 Paris Air Show. This move marks one of the largest aircraft orders at the event and is a critical step towards substantially growing VietJet's fleet.
The order includes a firm commitment for 100 A321neo single-aisle jets, with options to increase up to 150, and 20 Airbus A330-900neos. This move positions VietJet as a serious long-haul contender, challenging established low-cost long-haul rivals like Scoot and AirAsia X.
The A321neos, including potential XLR variants, will enable VietJet to open new point-to-point routes, such as Hanoi–Perth and Ho Chi Minh City–Dubai, strengthening its presence mainly in the Asia/Pacific region and beyond. The widebody A330-900neos are central to VietJet’s longer-term plans for increasingly extensive global network development, especially supporting future long-haul flights, including to Europe.
Sustainability is at the heart of this strategic investment. The A321neo and A330-900neo aircraft are newer, more fuel-efficient models that incorporate advanced aerodynamics and latest-generation engines. These aircraft are expected to reduce fuel burn per seat and carbon emissions compared to older fleets, contributing to VietJet’s efforts to balance growth with environmental responsibility.
The A330neo, like the A321neo, is certified to operate with up to 50% Sustainable Aviation Fuel (SAF), with plans to reach 100% SAF capability by 2030. This aligns with shifting market expectations as the aviation industry moves towards greener travel options.
VietJet Chairwoman Nguyen Thi Phuong Thao described the Airbus agreement as a significant milestone for the airline's global expansion and sustainable aviation ecosystem. She stated that this order is more than commercial contracts, expressing a vision to make Vietnam a regional aviation hub for various services, including passenger transportation, logistics, and research.
In summary, VietJet Air's large 2025 Airbus orders will significantly boost its operational capacity, enabling network diversification into long-haul markets with increased sustainability via modern fuel-efficient aircraft. This strategic investment positions VietJet as a more competitive global player while emphasizing environmental progress in its fleet modernization efforts.
- In light of the significant 2025 Airbus orders, VietJet Air's expansion into long-haul markets will not be restricted to airline news; it is also a stepping stone towards VietJet's vision to establish Vietnam as a regional hub for various services, such as education-and-self-development and research.
- The Paris Air Show's largest aircraft orders, secured by VietJet Air, show a paradigm shift in the aviation sector, with sports like long-distance flying becoming within the reach of low-cost carriers like VietJet, posing challenges to established long-haul competitors.
