VN Air competition: New Routes, Destinations and Aircraft

There are 4 players in the Vietnamese domestic market:
Vietnam airlines (VNA)
Air Mekong
Vietjet Air
Jetstar Pacific

Vietnam airlines bought a majority 70% shareholding in Jetstar Pacific, the Qantas Group's Ho Chi Minh-based low-cost subsidiary. Therefore, Jetstar effectively became Vietnam airlines' own low cost carrier (LCC) brand.
Combined they have nearly 90% of the domestic traffic.

Because of the VNA's dominant position, the domestic LCC penetration rate was only 17% – one of the lowest in Asia and the world.

With the competition of Air Mekong and Vietjet Air, VNA has dumped the price giving discount at 50% at times. The new startups cannot compete at that low give-away price, so they choose to sell around 300-600KVND higher compared to the VNA's lowest dumping price.

With VietJet increasing their capacity and the price war heating up, the competition is getting bloody. The worsening economy only makes it worse. Total domestic passengers from the first 6 months of this year declined 2.6% compared to previous year. While the price war is good for consumers, the question now is how long the new startups can survive with the price dumping and heavy start up costs.

Jaitch wrote:

Air Mekong and Vietjet Air have been flying well since the day they took off and they have been threatening the dominating position of VietNam Airlines in the domestic aviation market.

Presently, Air Mekong provides 30 flights a day with 13 air routes to nine domestic destinations, including Ha Noi, HCM City, Vinh, Buon Ma Thuot, Plei Ku, Da Lat, Quy Nhon, and Con Dao Island and Phu Quoc Island.

Wonder why airlines flying to Phu Quoc Island don't mention stops in Rach Gia? We need an airport in Ha Tien as we have the big ferry to the Island.

Useful link to the Big City when you need engine spares in a hurry.

VASCO is still flying Saigon to Rach Gia to Phu Quov. Heard they also flew from Vung Tau to Con Dao Islands as well.

Business Vietnamese style.  Government owned company use public money to price dumping to kill competitors then charge high price since there is no competition.  So stupid.