US Aircraft Firm to Invest US$20Mln in Vietnam Air-taxi Service

4:16:35 PM | 12/4/2006

Cessna Aircraft Company is planning to pump some US$20 million into air-taxi services in Vietnam, with charges on some routes expected to be lower than current fees of Vietnam Airlines (VNA).  
 
Salom Saphyr, head Cessna representative said since Vietnam’s accession to the World Trade Organization (WTO) more investors have shown keen interest in domestic air transport services.
 
Cessna is currently still seeking permission to launch its air-taxi service in Vietnam, Saphyr said, adding if everything went smoothly, flights could be launched within the next six months.
 
Cessna has been eyeing Vietnam since the draft decree was issued allowing foreign institutions to join forces with domestic entities to form joint ventures in the aviation industry.
 
Saphyr said Cessna had proposed to set up a joint venture with VNA subsidiary – Vietnam Air Services Company (Vasco) to provide air-taxi services, with the US firm responsible for supplying airplanes, training pilots and maintenance services.
 
Cessna conducted market research in Vietnam and found the Vietnamese public, heads of state and businesspeople had great demand for the service, Saphyr added.
 
In addition, he said, each year there are about 100 cases in which patients had to hire private airplanes to fly overseas for treatment or emergency aid, with some trips costing as much as $15,000 each.
 
Regarding fares for the air-taxi service, he said the Hanoi-Ho Chi Minh City route would cost some $300 per head to travel business class, and about $4,000 for the whole chartered aircraft.
 
As for economy class, the fares would be much cheaper, he said.
 
Saphyr said the airplanes they intended to bring into Vietnam could take off and land in all terrain, from Hanoi’s West Lake to Sapa’s northern mountains, and even beaches or streets.
 
In the initial phase, Cessna intends to put three airplanes in service, including a luxurious Jet and two medium-rated Caravans with a capacity of 12-16 passengers.
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