VietNamNet Bridge - Only 30 percent of passengers in Vietnam fly with budget airlines, much lower than in Malaysia and the Philippines, where the proportion is 50 percent, the highest in South East Asia. The fact that Vietjet Air can make profit while other airlines report loss has raised a hope that low cost carrier (LCC) could be a reasonable model, especially for private run airlines. CAPA, an organization which specializes in analyzing the aviation industry in Asia Pacific, believes that Vietnam and Myanmar are the two markets which have the greatest potentials for LCC development in the next three years. Analysts believe that the investment rate in the aviation sector is very high. Therefore, the first thing investors need to have is the stable long term investment capital. Vietjet Air is believed to be backed by powerful shareholders. The air carrier also plans to make initial public offering (IPO) in the time to come to attract capital from foreign sources. Vietjet Air has … [Read more...] about Low cost carriers – a suitable model for private airlines?
Low cost carrier
Philippines' low-cost carrier Cebu Pacific announced yesterday it will officially open new air routes from Manila to Ha Noi and Ho Chi Minh City from April this year. Philippine TV channel GMA reported the airline will provide the new services - licensed by the Civil Aviation Administration of Viet Nam (CAAV) early this month - with a special price of 499 pesos (US$12) per single ticket. It is scheduled to operate three Manila-Ha Noi flights a week starting April 10, and four flights from Manila to Ho Chi Minh City per week from April 11. Cebu Pacific is interested in opening air routes to Viet Nam because this is among the fastest growing nations in Asia, said Candice Iyog, the airline's Deputy Marketing Director. Cebu Pacific hopes to promote trade and tourism between the two countries, she added. With its new flights, Cebu Pacific is to become the second airlines to connect Viet Nam and the Philippines after the Philippines Airlines. Of the 44 international airlines in … [Read more...] about Filipino Low-Cost Carrier to Launch Direct Flights to Viet Nam
The nation's second air carrier, Pacific Airlines will start operations as a low cost carrier Feb. 13, offering first-come tickets on the Hanoi-Ho Chi Minh City route for as low as US $1.2, an official said. General Director Luong Hoai Nam said initially the low airfare will be applied on flights between Hanoi, Central Danang, and Ho Chi Minh City, as well as two international routes from Ho Chi Minh City to Taipei and Kaohsiung in Taiwan. There will be a range of ticket prices for each route. For instance, on the HCMC-Hanoi route, tickets will range from as little as VND20,000 (US$1.2) to VND1.5 million ($93.2). The earlier the passenger reserves a seat, the cheaper the airfare, but terms and conditions apply. Pacific Airlines, aiming to carry 8 million passengers annually, will become the country's second carrier to implement e-ticketing Feb 13 after Vietnam Airlines begins their e-ticket program Feb. 1. Two foreign budget airlines flying into Vietnam include … [Read more...] about Low cost carrier Pacific Airlines to offer US$1.2 airfare
Vietnam's budget private carrier VietJetAir is launching new flights to central tourism hubs Da Nang and Nha Trang. Besides the current Ho Chi Minh City - Hanoi route, the carrier will offer two daily flights between HCMC and Da Nang starting April 27 and one daily flight between Hanoi and Nha Trang starting May 19, the carrier said in a press release. The carrier will also increase flight frequency of the HCMC-Hanoi route from three to eight flights per day from April 27. "Passengers can also save their time and cost as they are able to fly out and in within a day," VietJetAir's commercial representative said in the press release. VietJetAir officially entered Vietnam's aviation market last December, four years after it was the first private carrier licensed in the country. As of late February, the carrier has made 360 flights, carrying more than 40,000 passengers with a load rate of more than 90 percent. Operating a fleet of three new Airbus A320 aircraft, the … [Read more...] about Low-cost carrier VietJetAir to fly to central hubs
The first private airline licensed in Vietnam four years ago officially joined the market Friday, introducing itself as a low-cost carrier. With its "Save more, fly more" slogan, VietJetAir aims to make air transport accessible to all Vietnamese and foreign tourists including low-income earners through affordable and flexible prices, the VietJet Aviation Joint Stock Company said in a press release. Nguyen Duc Tam, the airline's deputy general director, said the low-cost model is very popular and successful in the world. Tam said several low-cost flights in Vietnam have been operating with old airplanes, so VietJet "will change what Vietnamese people think about low-cost carriers" by using brand-new Airbus A320 aircraft. The new aircraft will save energy, reduce maintenance costs and avoid technical problems that can cause unexpected flight delays, he said, adding that all 180 seats will be used to maximize the efficiency. "The … [Read more...] about Private low-cost carrier set to take off in Vietnam