Vietnam Airlines to Stay out of Fare Fight: General Director

Vietnam Airlines to Stay out of Fare Fight: General Director

Lower air fares are on the cards in Vietnam, but are “too early to realize at present”, according to Vietnam Airlines General Director Nguyen Xuan Hien.

“Low-fare aviation activities can only appear in Vietnam in 2007,” he told the press.

The call came after Singaporean aviators Tiger Airways began offering cut-price airfares in the region, especially their very competitive USUS$25 Vietnam-Singapore flight, a fraction of the fare on Vietnam Airlines. Mr Hien described the move as “unsurprising” and forecast no effect on Vietnam Airlines market share.

“We’ve anticipated the involvement of Tiger Airways in the Vietnamese market and it won’t influence our market shares for this air route,” he confirmed.

“Vietnam Airlines currently holds 42 per cent of the Hanoi-Ho Chi Minh City-Singapore air route with high occupation rate, even with Tiger Airways in the market,” he added.

According to Mr Hien, Vietnam Airlines has no plan to offer promotional airfares on routes in which it has a firm footing. The airline’s current policy demands improved quality of crew, employees and services, rather than offering budget style flights.

“Vietnam Airlines is ready to compete with both discount-fare carriers and more upmarket airlines” Mr Hien maintained, citing increases in passenger numbers of over 40 per cent in February, compared to the same period in 2004.

Vietnamnet