Vietnam Airlines Says "No Fear" over Tiger Airways Discount Flights

Vietnam Airlines Says “No Fear” over Tiger Airways Discount Flights

Vietnam Airlines would remain unaffected by the launch of discount flights on routes between Vietnam and Singapore operated by Singaporean budget carrier Tiger Airways, an airline official said Feb. 28.

Low-cost carrier Tiger Airways will offer passengers on board its flights from Hanoi or Ho Chi Minh City to Singapore a USUS$25 one-way ticket with taxes excluded as of April, announced airline officials.

The discount fare is up to 80 per cent lower than the existing ones, according to Tiger officials.

Vietnam Airlines currently holds 42 per cent of the market share on the routes from Hanoi and Ho Chi Minh City to Singapore, and the figure will not reduce following the emergence of Tiger Airways, said Nguyen Xuan Hien, Vietnam Airlines chief executive.

However, such a discount will only meet the demand of a small number of customers as it might be attached with detailed conditions, he said.

He also said no-frills flights mean very limited services with online ticket sales and use of secondary airports.

With the opening of Vietnam’s skies, Vietnam Airlines is ready to encounter competition from both budget and traditional airlines, and the rise of Tiger Airways has been anticipated, he added.

Currently, Vietnam Airlines operates 11 flights per week between Hanoi and Singapore with one-way ticket costing US$321, and also 11 flights a week between Ho Chi Minh City and Singapore, and the fare is at US$211.
Thanhniennews