Wednesday, January 10, 2007

2007: Vietnam’s aviation industry will renew itself


VietNamNet Bridge – Vietnam’s air carriers will see many changes in 2007: Pacific Airlines will become a budget airline, Vietnam Airlines has asked to raise the ceiling airfare in order to have more flexible operations. Meanwhile, VASCO is seeking foreign partners.

Many changes for domestic flights


A representative of Pacific Airlines said that the e-ticket booking system would be put into operation in February, and allow passengers to book seats, book hotels, buy tours, or lease vehicles globally with simple clicks. Passengers will be able to make payments by credit and debit cards, or make payments in cash at places authorised by the airline. They can still book tickets at booking agents, or ask for ticket delivering services. The application of the super cheap airfares will be implemented in the said e-ticket booking system. The number of tickets at preferential airfares will only account for a small proportion of the total tickets.

Meanwhile, the national flag carrier Vietnam Airlines is going to submit to the Ministry of Finance the plan on raising the ceiling airfare to VND2mil from the currently applied level of VND1.5mil. In return, Vietnam Airlines will offer low airfares in order to give more choices to customers. Vietnam Airlines is also planning to sell e-tickets beginning in February.

In 2007, Vietnam Airlines will receive many new aircrafts, which will improve its current fleet. The air carrier has also kick-started an investment project on an aircraft repair and maintenance centre, which is expected to be located in HCM City.

Pham Ngoc Minh, Deputy Director General of Vietnam Airlines, has stated that with the said improvements, Vietnam Airlines will successfully reduce the number of delayed or cancelled flights.

VASCO, the air service provider, is also attempting to attract more passengers by offering more domestic flights, including the HCM City – Con Dao, HCM City – Phu Quoc Island. US-based Cessna said that it had offered to cooperate with VASCO to provide air taxi services in Vietnam.

New faces on international flights

On January 1, 2007, the Aviation Law came into effect. The legal documents guiding the implementation of the law will be enacted in January.

For the first time, the regulations on compensations for delayed and cancelled flights and punishment for violations will be legalised. In addition, the requirements and conditions for establishing air carriers will also be set out.

According to the Civil Aviation Administration of Vietnam, in 2007, Vietnam will sign aviation agreements with Qatar and Malaysia and an agreement on bilateral cooperation with Singapore. Vietnam will also continue negotiating with Japan, France and Belgium on aviation cooperation.
President of Air Asia Toney Fernandes has revealed a plan to open an air route from Kuala Lumpur to HCM City. Most recently, Russian Transaero has opened a direct air route from Moscow to HCM City. In the immediate time, it will provide one flight every 10 days; after that, one flight every week, commencing in April.

Vietnam Airlines’ representative has acknowledged that the competition has become fiercer as many rivals like Air France, Japan Airlines, Cathay Pacific, and Singapore Airlines have joined the market. In addition, budget airlines should also be seen as redoubtable rivals.

(Source: VNE)

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