Vietnam Airlines again delays launch of direct US service
National flag carrier Vietnam Airlines has put off the launch of direct flights to the US until next year since it is still unprepared.
Nguyen Si Hung, its chairman, said the delay had been necessitated by the tough security conditions the US imposed.
For instance, the carrier had to provide US authorities a list of passengers and their personal information four hours before take-off.
The direct service was to have begun later this year and it is the second time the carrier is rescheduling the launch.
The airlines expects to incur losses of US$20-30 million in the first year of flying to the US but to recover them within four years.
It plans to fly four times a week and price an economy class round ticket at below US$1,000, or below rival carriers’ rates.
It expects strong competition since Americans tend to choose US carriers over foreign airlines.
Prime Minister Nguyen Tan Dung has asked Vietnam Airlines to soon begin the direct services which would have “great social and political significance”.
The carrier’s January-June revenue was VND9.38 trillion (US$586 million), a year-on-year jump of 11 percent.
Its pre-tax profit was reported at VND205 billion, making up 57 percent of the company’s target for 2007.
The airline targets a year-on-year passenger growth of 14 percent, around 7.7 million, this year with nearly half of those being international passengers.
It also looks set to double its aircraft fleet to more than 80 between now and 2015 to meet with its growth rate of 13-15 percent.
The US-based United Airlines will start a daily Ho Chi Minh City – Los Angeles service on October 29 to cater to southern California where the highest number of Vietnamese live outside the country.
United is the only airline operating direct passenger and cargo services between Vietnam and the US.
It as operates daily flights from Ho Chi Minh City to Hong Kong with continuing non-stop service to San Francisco and connecting non-stop service to Chicago.
From these cities, United provides more flights to more cities in the US than any other airline.
By Dong Ha - Thanh Nien - July 14, 2007.
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