Vietjet Thailand Pushes Ahead with Udon Thani Hub Amidst Volatile Fuel Prices and Sluggish Demand

Despite volatile fuel prices and sluggish demand, Vietjet Thailand is pressing ahead with its ambitious plans to develop Udon Thani into a new regional hub. The airline stated that the aviation situation remains manageable as it continues to ramp up capacity and build its new hub. Chief Executive Woranate Laprabang highlighted the ongoing volatility in fuel prices due to the conflict in the Middle East. He also noted that travelers are expected to remain cautious with their spending for the rest of the year, particularly during the low season, with many adopting a wait-and-see approach. However, Vietjet Thailand anticipates a positive performance in the fourth quarter, banking on the high season as Thailand continues to be a leading tourism destination in Asia. Currently operating a fleet of 11 Boeing 737 Max 8 aircraft and 12 Airbus A320 and A321 planes, Vietjet Thailand aims to expand its fleet to 25 Boeing 737s and four A320s by the end of this year, with a long-term target of 50 jets by 2028. The airline had reduced capacity on some routes following the Middle East conflict, particularly to India and China, but has since restored some services and increased domestic capacity. For the upcoming cool season, Vietjet Thailand plans to increase frequencies to Osaka and Tokyo, and launch a new Phuket-Taipei-Fukuoka route. The airline's strategic development of Udon Thani as a hub for the northeastern region aims to capture a larger share of the domestic market as its fleet expands. Udon Thani airport handled over 2 million passengers last year, and the city is set to host a Horticultural Expo from November to March next year. Vietjet Thailand has introduced a new check-through service, "SkyConX," at Udon Thani airport for passengers traveling to Japan, Taiwan, and Vietnam via Suvarnabhumi airport, allowing them to check in, drop baggage, and complete immigration formalities at their departure airport. Vietjet Thailand plans to increase the frequency of its Bangkok-Udon Thani service from two to four daily flights by September, with a potential increase to five flights a day if demand remains healthy. The airline is also studying the feasibility of launching a direct route between Udon Thani and a Vietnamese city, such as Ho Chi Minh City, to promote two-way tourism. Mr. Woranate suggested that government plans to promote regional airports should include incentives for airlines, such as reductions in landing fees and air navigation charges. He also stressed the need for cities to improve facilities for foreign visitors by expanding foreign language signage and developing new attractions and festivals. The airline intends to extend its "SkyConX" check-through service to Khon Kaen and Surat Thani later this year and in early 2027. Deputy Transport Minister Phattrapong Phattraprasit confirmed that Udon Thani, Khon Kaen, and Surat Thani airports, operated by the Airports Department, are undergoing operational upgrades to accommodate direct international flights in line with International Civil Aviation Organization standards. He also mentioned that another airline has approached Udon Thani airport about launching a new route from Kunming, China. Source: Bangkok Post