Pacific Airlines plans budget flights in February 2007

December 30th, 2006

Viet Nam, which has seen a recent influx of foreign budget airlines, is set to get its first low-cost carrier. Pacific Airlines (PA), now a full-cost carrier in which the government owns over 86 percent and Saigon Tourist over 13 percent, will make the switch to a budget carrier in February 2007. 

Ta Huu Thanh, deputy head of the PA northern branch, said: “The company can offer even one-dollar tickets on some flights. It then expects to carry 8 million passengers, twice the current figure.” Industry insiders said Pacific Airlines’ decision was aimed at pre-empting a take-over of domestic air routes by foreign budget airlines in the near future. 

Some foreign airlines had expressed a desire to provide low-cost air transport within Viet Nam, experts said.
Malaysia’s AirAsia was one such airline, they said. Its director, Tony Fernandes, is on record as saying: “If the company is allowed to open a budget air route linking Ha Noi and HCM City it would be able to offer the service at just 500,000 VND (31 USD), inclusive of service charges,” Tony said. 

Within Malaysia, a one-hour flight costs just 10 USD plus service charge, while a similar service by Vietnam Airlines costs 830,000 VND (52 USD), he said. According to the Asia Pacific Airlines Centre, several new budget airlines would enter the market in the next five years. 

There would be some 650 cheap flights daily in the region compared with the current 290, it said.(Source: VNA) 

Tags: Pacific Airlines Vietnam, Vietnam Airlines, low cost flights in vietnam, budget airlines to vietnam

Entry Filed under: Vietnam Destination