Vietnam Airlines, Vietjet Told to Restore Domestic Routes by November 2026

Overview

Vietnam’s Civil Aviation Authority (Cục Hàng không Việt Nam) has asked Vietnam Airlines (HOSE: HVN), Vietjet Air (HOSE: VJC) and other carriers to review their domestic networks, restore suspended routes, open new direct connections between localities and increase frequencies on existing services. Carriers must submit concrete plans covering late 2026 and 2027 by 10/11/2026. The directive matters for HVN and VJC because domestic capacity is a core revenue base and the request implies policy backing for network expansion.

Key Facts

• The Civil Aviation Authority issued the request to Vietnam Airlines, Vietjet Air, Pacific Airlines, Bamboo Airways and Sun PhuQuoc Airways, plus related units.
• Carriers must report specific plans by 10/11/2026, covering route restorations, new routes and frequency increases.
• The reporting period spans the final months of 2026 and full-year 2027.
• Airlines are asked to assess both currently operated routes and routes that have been temporarily suspended.
• The authority encourages new direct routes between economic and tourism centres and key economic regions, reducing dependence on connecting flights through hub airports.
• Carriers are asked to coordinate with airport operators, aviation service providers, local authorities and travel firms on market demand and destination promotion.
• The notice does not disclose any funding, subsidy level or slot allocation figures.

What Happened

The Civil Aviation Authority said Vietnam’s airport system has been invested in, upgraded and expanded in recent years, with several aviation infrastructure projects completed or under way, improving service capacity and creating conditions for network growth. On that basis, the authority asked airlines to conduct a comprehensive review of routes in operation and routes previously suspended, then study restoring those with market potential that meet demand for travel, trade and tourism and satisfy operating conditions.

Airlines were also asked to consider raising frequencies on existing routes and to study new direct routes between localities, particularly between economic and tourism centres and key economic regions. The authority framed direct connectivity as a way to cut travel time and cost and reduce reliance on connecting flights through hub airports. It asked carriers to work with airport enterprises, aviation service providers, local governments and tour operators on demand assessment and destination promotion, and to examine cooperation and support mechanisms consistent with legal regulations and balanced across the state, localities, enterprises and the public. The request was reported in a notice carried by Vietnamese media; no transaction value or incentive amount was disclosed.

Market Context

HVN closed at VND 21,050 on 24 October 2026 and VJC at VND 129,700, both on HOSE. The two carriers dominate domestic trunk routes, and the authority’s push follows a period in which airport upgrades and new terminal capacity have expanded the infrastructure available to airlines. Domestic route economics depend on aircraft availability, fuel costs and fare competition, so the directive is a demand-side and policy signal rather than an immediate earnings driver. The broader Vietnamese market has been sensitive to infrastructure and tourism policy announcements, and aviation names typically react to capacity and route news alongside fuel and fleet updates.

Strategic Significance

The directive points to a policy preference for point-to-point domestic connectivity rather than hub-and-spoke concentration, which favours carriers with fleet flexibility and existing local market presence. For HVN, restored and new domestic routes support utilisation of its narrowbody fleet and feed traffic into international services, while for VJC it reinforces a low-cost network model built on frequency and secondary-city pairs. The explicit call to coordinate with local authorities and tourism firms suggests provinces may offer support mechanisms, potentially lowering route-launch risk. The absence of stated subsidies or slot guarantees means the commercial burden remains with carriers.

What to Watch

• Carrier filings and disclosures on domestic route plans ahead of the 10/11/2026 deadline.
• Any provincial support or cooperation mechanisms announced for specific new routes.
• October and November 2026 domestic passenger and frequency data from the Civil Aviation Authority.
• Q4 2026 and FY2026 results from HVN and VJC, including domestic load factors and yields.
• Airport capacity and slot availability at Nội Bài and Tân Sơn Nhất as new routes are added.