Foreign airlines take to the skies over Vietnam
Vietnam's aviation industry is heating up as foreign airlines are pouring into the market in the hope of capitalising on the country's burgeoning economy and increased need for air travel.
Nok Air, a Thai low cost carrier (LCC), highlighted the industry shift by announcing plans to open commercial routes from Bangkok to the Vietnamese cities of Ha Noi and Ho Chi Minh City with two flights daily, from the fourth quarter of 2007.
Nok Air’s announcement will bring the number of foreign airlines flying over Vietnam’s airspace to 36, in addition to the three domestic airways of, Vietnam Airlines, Pacific Airlines and Vasco, said the Vietnam Civil Aviation Department.
Most for the moment are tapping into the Northeast Asian and Southeast Asian markets. Eight carriers connect the Vietnam-Thailand route, Vietnam-Taiwan, by seven airlines, and Vietnam-China by six airlines.
Budget carrier Air Asia, said it would add another flight from Ha Noi to Kuala Lumpur from June 19, bringing the total flights on this route to two daily. It also has said that another route from Ho Chi Minh City is in the works.
In a bid to cope with the increased competition from foreign carriers, the Vietnam Oil and Gas Group (PetroVietnam) and the Vietnam Airlines have recently signed an agreement on strategic cooperation and plan to enter into a joint venture with the Defence Ministry to establish an aviation taxi service.
Pacific Airlines is also considering a shift in its business operations as it moves closer to becoming a LCC with a bevy of special promotions and slashed ticket prices being recently announced.
Vietnam News Agency - May 24, 2007.
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