Low-Cost Airlines in Vietnam Affirm Strong Attractiveness

Although all air lines when registered to open their flights in Vietnam are treated fair, no discrimination among those with low price or traditional ones, airlines with low price have been creating huge attraction in Vietnam's market.

Three years ago, Singapore's low-cost airline, Tiger Airways brought a new concept of traveling by air to Vietnam's market when announcing its cheap price of US dollar 15 for a journey from Ho Chi Minh to Singapore along with no-free services and booking through internet without permission to return tickets.

 

Right after that, series of cheap airlines of the region have come to Vietnam to make its market more eventful. AirAsia- the biggest cheap airline in Asia came to Vietnam after Tiger Airway one year, but up to now, it has two branches including Air Asia (Malaysia) and Thai Air Asia (Thailand) working effectively in Vietnam. From Hanoi to Kualalumpur, at first there was only one flight a day and now there are 2 flights a day. Thai Air Asia also has 2 flights a day from Hanoi to Bangkok. In opening ceremony of a new office in Hanoi in September, 2007, General Director of Thai Air Asia, Mr Tassapon Byleveld told that Air Asia will have another airline in Vietnam, Vina Air Asia. At that time, it is sure that the market will be even more eventful because Vina Air Asia is the joint venture company with 49 per cent of foreign capital to be permitted to exploit domestic air way.

 

From the 1st October, 2007, there has been one more low-cost airline of Thailand, Nok Air officially opened airway from Bangkok to Hanoi with 2 flights a day. In the press meeting of opening Bangkok-Hanoi route, General Director of Nok Air, Mr Patee Sarasin announced that this airline would give the cheapest price of US dollar 0.09 without tax calculation "lower than the price of keeping motors in Hanoi". According to department of air transportation, the airway Bangkok-Hanoi used to be evaluated to be difficult to open but unexpectedly, airlines have completed. In order to broaden the airline, airline companies have to compete hard.

 

With the practical view, CEO of airline companies all have the same target to confirm its position in Vietnam as a gate to connect to Southeast Asia. This is especially important because Southeast Asia region has been growing fast in demand for traveling by air.

 

However, there is a contrary thing that all airlines are not excited when they are recommended to open route to Danang, Hue in stead of Tan Son Nhat airport (always overcrowded) when coming in Vietnam. Frequency of flights is not limited and exploitation fee in early period of opening airway will be reduced by 50 per cent.

 

Even, experts of Vietnam airline department and Tourism general department all see that demand for domestic airways to Danang has been growing fast but less attractive compared with international flights. Tiger Airways last year opened airway Singapore-Danang but stopped in only one month due to low amount of passengers and high cost of landing. Only two airlines now operate in Danang including PB Air (Thailand) with 3 lights a week and Silk Air. Mr Tassapon Bylevelf said that Air Asia also had planned to open an office in the two destinations on the basis of surveying the demand of tourists from Bangkok.