3:26:43 PM | 7/8/2005
United acquired its authority to serve Vietnam from Pan Am in 1986. Before the interruption in relations in the 1970s, Pan Am was the major U.S. flag provider of scheduled air service in the U.S.-Vietnam market. United is beginning service after many years of working with the U.S. and Vietnamese governments to negotiate a new air service treaty.
United is the world’s second largest airline, with 66 million passengers carried each year, 3,500 daily departures and 62,000 staff worldwide.
United will operate combined passenger and cargo services using Boeing 747-400 aircraft each configured with 14 First Class Suites, 73 United Business seats and 260 Economy Class seats including Economy Plus seating for more legroom.
United’s fleet consists of 523 aircraft (2004) including 42 Boeing 747s and 53 Boeing 777s. United is a young airline in terms of aircraft, it has the latest and most modern aircraft and technology with 210 US domestic destinations and 109 international destinations in 23 countries.
In the past few years, the United States has become the biggest export destination for Vietnam, accounting for approximately 30 per cent of exports. Export value to the United States quadrupled between 2001 and 2003. Major exports from Vietnam are garments, which account for 30 per cent of trade; 20 per cent for seafood; 10 per cent for handicraft products; and 10 per cent for electronics.
United chose Hong Kong as the transit destination instead of other countries because Hong Kong is a vibrant city and a financial center in Asia, where United has a major operation. In addition, Vietnam is a growing trade market and tourist destination for Hong Kong. Under the agreement reached between the U.S. and Vietnamese governments, United will be permitted to carry passengers locally between Ho Chi Minh City and Hong Kong. From Hong Kong, United also offers a daily nonstop flight to Chicago, which provides additional options for onward connections to the U.S. Midwest and East Coast.
Since the inauguration, passengers have responded so enthusiastically to United’s service to Vietnam via Hong Kong that United is adding an additional 1,000 seats a week between Hong Kong and the United States to accommodate Vietnam bound passengers.
United will add a thrice–weekly service from Chicago O’Hare (ORD) to Hong Kong (HKG) this month to facilitate more access to Vietnam. This increases the number of weekly flights between Chicago and Hong Kong from 7 to 10.
According to Mr Joe Mannix, the Country Manager Vietnam: “There are many reasons why Vietnam is a natural fit for United. First, Vietnam is the fastest-growing travel market in Asia right now, growing even faster than China. From the period between 1985-1999, the number of passengers flying into and out of Vietnam grew by nearly 30 percent. The International Air Transport Association predicts over the next ten years, that rate will climb by slightly more than 10 percent each year. Second, foreign direct investment in Vietnam by the U.S. and other countries is quickly escalating. According to the U.S-Vietnam Trade Council, U.S. industry put more than USD 1 billion into the Vietnamese economy in 2003. Third, according to the Asian Development Bank, GDP growth is forecasted at more than 7 percent each year through 2010. Fourth, Vietnam is the second-most populous country in Southeast Asia, with approximately 80 million citizens. Two–thirds of the population is under 25 years of age, an enormous emerging market of young, well-educated people who will have exposure to the United brand. Fifth, Vietnam is moving quickly to establish its position as a citizen of the global community. The country is an Observing Member of the World Trade Organization also they are a member of the Association of Southeast Asian Nations (ASEAN) as well as the International Monetary Fund (IMF). The U.S. established normal trade relations and a bilateral trade agreement with Vietnam in December 2001”. Finally, several American cities–including communities in California, Minnesota and North Carolina–have large Vietnamese constituencies, a natural base of traffic for leisure visits to friends and family. Our service to Vietnam includes flights to both Hanoi and Ho Chi Minh City through code share agreements with Thai Airways over Bangkok, Asiana Airlines over Seoul and ANA over Tokyo (ANA code share service is only to Ho Chi Minh City)”.
Most of United’s activities in the future will focus on increasing brand awareness, customer concentration and increasing its business along with the Vietnamese economy.
Vietnamese
