Vietnam's Pacific Airlines becomes low cost carrier
HANOI - Pacific Airlines will restructure its operations to become a low-cost carrier (LCC), the airlines announced on Tuesday.
The move will make the airline Vietnam's first no frills carrier.
To trim costs Pacific Airlines (PA) will increase domestic flights on some key routes, reduce on-board services and eliminate catering while issuing e-tickets.
The carrier's director, Luong Hoai Nam, said it would also manage to reduce fuel expenditure and restructure its labour force in a bid to slash costs.
"This is an appropriate time for PA to transform ourselves into a LCC which we see as a better and more effective business model," he said.
Starting from October 29, PA will increase the number of flights on Hanoi - HCM City routes from six to seven, and from one to two flights linking HCM City and Da Nang to meet rising demand.
However the under performing Hanoi - Da Nang flights will be cancelled.
The airline has also been aggressive in seeking out international carriers to partner with for flights abroad. Eva Airways of Taiwan has reached an agreement with Pacific to co-operate on the HCM City-Taipei routes tentatively proposing up to 20 flights per week.
PA also plans to reduce aircraft turnaround times at each destination to fall in line with other international standards for LCCs, reported the airline. While a new e-ticketing system called New Skies will be on line by February next year.
The airline has stated that it will diversify ticket prices with some fares coming in as low as US$1, $10 and $20 for both international and domestic flights, according to Nam.
International LCCs Tiger Airways and Malaysia's AirAsia have operated in Vietnam.
Vietnam News Agency - October 20, 2006.
Pacific Air to become budget carrier
HANOI - Pacific Airlines, Vietnam's second-largest airline by fleet size, will restructure itself into a low-cost carrier, a company executive said Friday.
"The company will boost its revenue by adding more flights, and cut costs and operate like other low-cost carriers," said Luong Hoai Nam, director of Pacific Airlines.
Nam said that the company will focus on existing routes by raising the number of domestic flights.
From Oct. 29, Pacific Airlines will have seven flights a day between Hanoi and Ho Chi Minh city, up from six currently, and two flights a day between Ho Chi Minh city and Danang, from one currently.
Pacific Airlines now operates three Boeing 737s and one Airbus A320 on domestic and international routes. In addition to its domestic network the airline has five flights a week to Taipei and Kaohsiung in Taiwan.
"We plan to soon operate only one kind of aircraft, Boeing 737s or Airbus A320, to cut costs," Nam said.
Pacific Airlines' has two major state-owned shareholders: the State Capital Investment Corp., which is under the Ministry of Finance, and Saigontourist.
Vietnam currently has three carriers. Vasco, the third-biggest airline, is also a state-owned firm and it operates three small aircraft.
The Associated Press - October 20, 2006.
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