Sun PhuQuoc Airways' (SPA) first Airbus A321 arrived in Vietnam on 10/8, less than two months after receiving its air transport business license. The airline's "chief architect" is Nguyen Manh Quan, who has decades of experience in the aviation market, having held leadership positions at Vietnam Airlines and Bamboo Airways.

Sun Group's airline is rushing to finalize preparations to meet its goals of opening ticket sales in October and commencing commercial flights in December. SPA has been actively recruiting staff, pilots, and flight attendants.

This newcomer to the Vietnamese aviation market is ambitious, planning to acquire and operate seven more Airbus A321s by the end of the year. They have also signed a contract with Vietcombank to finance the acquisition of 10 new-generation Airbus A320/A321 aircraft.

Sun Group envisions SPA as a leisure airline, combining transportation with tourism experiences. Phu Quoc will be their hub, connecting directly to major domestic cities and international destinations in China, Japan, and South Korea.

Sun PhuQuoc Airways' first aircraft arrived in Vietnam on 10/8. Photo: Sun Group

Sun PhuQuoc Airways' first aircraft arrived in Vietnam on 10/8. Photo: Sun Group

Alongside SPA, the Vietnamese aviation market is also witnessing the strong return of Vietravel Airlines after receiving investment from T&T Group. Since the end of June, the airline has acquired two aircraft and expects to receive another soon. This is part of the new strategic shareholder's shift from leasing to ownership. Previously, a shortage of aircraft and financial resources caused significant operational difficulties for Vietravel Airlines.

The airline aims to increase its fleet to at least 10 aircraft by the end of this year and add several domestic routes. In addition to passenger transport, Vietravel Airlines also plans to establish an air cargo fleet.

These companies are entering a thriving market, as Vietnam's aviation and tourism sectors are experiencing their most favorable period since the pandemic. Domestic passenger numbers for Vietnamese airlines in the first half of 2025 have rebounded compared to the same period last year.

Vietnam welcomed 12.2 million international visitors in the first seven months of this year, an increase of nearly 23% compared to the same period in 2024 and 25% higher than in 2019, the golden year for Vietnamese tourism. The sector is expected to grow further after the government's recent decision to grant visa exemptions to citizens of 12 European countries entering Vietnam from 15/8.

Infrastructure is being significantly invested in with major projects like Long Thanh Airport, Gia Binh Airport, and the expansion of Phu Quoc Airport. This will benefit new airlines in terms of operations, slots, and aircraft parking positions.

The business performance of Vietnamese airlines has also improved markedly with passenger growth and lower jet fuel prices. Vietnam Airlines reported a record profit of over 6,680 billion VND in the first half of 2025, more than twice the peak annual profit for the period 2017-2019. Similarly, Vietjet's consolidated pre-tax profit was about 1,600 billion VND, up 65% compared to the first half of last year. This is the private airline's highest half-year profit since the Covid-19 pandemic.

Bamboo Airways still faces challenges after restructuring, but its core aviation business operations were nearly profitable in the first six months of 2025.

However, with the upcoming competition, airlines may find it difficult to maintain these profit margins as market share is impacted. After Bamboo Airways weakened, reducing its fleet from 30 to under 10 aircraft and shrinking its network since the end of 2023, the domestic market has been largely dominated by Vietnam Airlines and Vietjet.

However, Bamboo Airways once held about 18% of the domestic market share. In 2020, a year after the airline commenced operations, several securities companies warned of the risks from increased competition with Vietnam Airlines and Vietjet in their market analysis reports. Intense competition in the market also led to a sharp decrease in domestic ticket prices at that time.

Therefore, the entry of Sun PhuQuoc Airways and Vietravel Airlines, with support from Bau Hien, is expected to provide customers with more choices, improve service quality, enhance connectivity between localities, and contribute to lower ticket prices.

The tourism sector achieved remarkable results in the first half of this year, but according to Nguyen Trung Khanh, Director General of the Vietnam National Administration of Tourism, high airfares, especially during peak seasons, remain a major challenge for domestic tourism. During this summer's peak season alone, ticket prices on many routes increased by 45% compared to last year.

Bamboo Airways' leadership acknowledged that the arrival of new entrants and the resurgence of competitors is putting pressure on the airline. Currently, Bamboo Airways operates seven aircraft. SPA and Vietravel Airlines will surpass Bamboo Airways in fleet size if they achieve their plans of owning 8 and 10 aircraft, respectively, by the end of the year.

In response, Bamboo Airways' leadership stated the need to implement various measures to enhance competitiveness, including maintaining service quality, ensuring flight safety, improving finances, and attracting new investors.

Meanwhile, Vietnam Airlines is not overly concerned about the impending increased competition. Chairman Dang Ngoc Hoa stated that competition is inevitable in a deeply integrated market. According to him, Vietnam Airlines competes with only a few airlines in the domestic market, while it faces competition from over 50 airlines in the international market with routes to Vietnam.

Vietnam Airlines Chairman Dang Ngoc Hoa said that the addition of new airlines to the market is an opportunity for Vietnam Airlines to innovate, improve management capacity and human resources, and maintain its position as the national flag carrier.

According to Hoa, competition is an inevitable factor in a deeply integrated market. In the domestic market, Vietnam Airlines competes with only a few airlines, but in the international market, it faces competition from over 50 airlines operating routes to/from Vietnam.

In the future, the national flag carrier will continue to invest in technology, personnel, and expand its domestic and international networks. The airline will also strengthen cooperation with global partners and diversify products and services to meet the increasing demands of passengers.

Anh Tu