Vietnam Airlines (HVN) and VietJet (VJC) Told to Restore Domestic Routes by November 2026

Overview

The Civil Aviation Authority of Vietnam (Cục Hàng không Việt Nam) has asked domestic airlines to review their route networks, study the restoration of suspended domestic routes, open new domestic services and increase frequencies on existing ones, with plans to be submitted before 10 November 2026. The directive lands on HOSE-listed Vietnam Airlines (HVN) and VietJet Air (VJC), the two largest domestic operators, and follows a wave of airport investment, upgrade and expansion projects across the country.

Key Facts

• The Civil Aviation Authority of Vietnam issued a written request to airlines to review operating routes and routes that have been suspended.
• Carriers must report their restoration and expansion plans before 10 November 2026.
• Airlines are asked to assess routes on market potential, travel demand, trade and tourism, and operational feasibility.
• The authority also asks carriers to consider raising frequencies on existing domestic routes.
• New direct point-to-point routes between localities are encouraged, particularly between economic and tourism centres and key economic regions.
• The stated aim is to reduce dependence on connecting traffic through hub airports.
• Airlines are asked to coordinate with airport operators and aviation service providers to prepare the necessary conditions.
• The source article does not disclose any specific route, frequency or capacity figure.

What Happened

The Civil Aviation Authority of Vietnam said the national airport system has been gradually modernised through investment by the state, airport operators and local authorities, with several projects completed or under way. In a document sent to carriers, the regulator said air transport plays an important role in linking localities and economic regions, promoting trade, attracting investment, developing tourism and meeting public travel demand. Restoring and developing direct domestic routes is expected to shorten travel times, widen access to air services and unlock the potential of individual regions.

On that basis, the authority asked airlines to proactively review and comprehensively assess both their active domestic networks and routes that have been suspended. Carriers should study restoration options for routes with potential in terms of market, travel demand, trade and tourism, and which meet operating conditions. The regulator also encouraged research into new routes connecting localities directly, especially between economic and tourism centres and key economic regions, to strengthen regional linkages and cut travel time and cost. Airlines were asked to work with airport enterprises and aviation service providers to prepare the conditions needed and gradually raise transport volumes.

Market Context

HVN, listed on the Ho Chi Minh City Stock Exchange (HOSE), closed at VND 21,050 on 24 October 2026, while HOSE-listed VJC closed at VND 129,700. Both carriers sit in the travel and leisure sector, where domestic seat capacity is the swing factor for load factors and unit revenue. The directive arrives as airport upgrades expand slot availability at secondary airports, a combination that historically supports domestic frequency growth without proportional increases in hub congestion.

Strategic Significance

The policy angle matters more than any single route. By pushing point-to-point domestic links over hub-and-spoke connections, the regulator is effectively inviting carriers to monetise underused provincial airport capacity that has been upgraded with public and private capital. For HVN, which carries a heavier fixed-cost base and a larger hub structure at Nội Bài and Tân Sơn Nhất, incremental domestic frequencies spread crew and aircraft utilisation across more sectors. For VJC, the directive aligns with a low-cost model built on high-frequency short-haul flying. The constraint is fleet and labour availability, not regulatory permission, so the practical test is how much capacity each carrier is willing to commit in its November filing.

What to Watch

• Submission of airline route plans to the Civil Aviation Authority before 10 November 2026.
• Any announcement of specific restored or new routes and frequency increases by HVN or VJC.
• Third-quarter or fourth-quarter 2026 traffic data from the Civil Aviation Authority showing domestic passenger volumes.
• Progress on airport upgrade and expansion projects that determine slot availability at secondary airports.
• Fleet delivery and aircraft utilisation disclosures from both carriers in upcoming filings.