PM approves renewed VN-U.S. air transport pact

HCMC - The Prime Minister has endorsed an air transport agreement that officials of Vietnam and the United States renewed in May this year with an aim to further open the passenger and cargo transport markets for carriers of the countries to capitalize on emerging opportunities.

In Decision 1687/QD-TTg dated September 15, Prime Minister Nguyen Tan Dung told the Ministry of Transport to oversee implementing the agreement signed by Minister Ho Nghia Dung and U.S. Ambassador to Vietnam Michael W. Michalak in Hanoi.

Lai Xuan Thanh, deputy director general of the Civil Aviation Administration of Vietnam (CAAV), told the Daily last week that the renewed U.S.-Vietnam Air Transport Agreement would be effective until December 31, 2012 and subject to future renewals.

According to CAAV, the agreement is mainly based on an Open Skies accord for all-cargo services that Vietnam and the U.S. initialed around two years ago to liberalize their bilateral civil aviation relations. So, liberalization of cargo services is the most significant change scope of the new pact.

U.S. cargo carrier FedEx is cashing in on the increasing cargo services between the U.S. and Vietnam. Vietnam’s Trai Thien Air Cargo is finalizing procedures to take off, but targets Vietnam and other Asian markets in the initial time.

CAAV said passenger services terms of the new pact almost remained unchanged because Vietnam still held its right to consider awarding the fifth freedom for American airlines to disembark passengers traveling from Vietnam or board their flights at some stopovers in the northeast of Asia.

American carrier Delta Air Lines had to suspend its Tokyo-HCMC service in late March this year, nine months after running this air route, as a result of network restructuring and lacking the fifth right.

Delta Air Lines now joins a code-share service with Vietnam Airlines because both are members of the world’s airline alliance SkyTeam.

United Airlines is now the sole American operator of direct flights between Vietnam and the U.S. This carrier has flown to Tan Son Nhat International Airport via Hong Kong International Airport since 2004.

United Airlines sells discount airtickets from US$125 in September for a two-way trip between HCMC and Hong Kong. The carrier will open a new office in the Sunwah building on Nguyen Hue Boulevard in downtown HCMC later this month.

Vietnam Airlines is expected to launch its long-awaited direct passenger services to the U.S. in the second half of next year as the airline’s chief executive officer Pham Ngoc Minh told reporters at the 19th World Economic Forum on East Asia 2010 in HCMC in mid-2010.

Minh said the flagship carrier would commence the commercial passenger flights to the U.S. when the aviation authorities of the two countries had reached agreement on technical barrier and air control standards, hopefully in 2011.

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Domestic air market becomes more competitive

Photo: AFP

The arrival of two new Vietnamese carriers Air Mekong and Blue Sky Air is expected to stir up competition in the domestic market, which is currently overloaded.

Air Mekong, Vietnam's third private air carrier, is scheduled to launch its maiden flight on October 10.

The airline has received delivery of four Canadian Bombardier CRJ 900 aircraft, owned by the US company Skywest Leasing. Each aircraft has 90 business and economy-class seats.

Truong Thanh Vu, Air Mekong’s Commercial Director, said that his airline is currently waiting for its Air Operator’s Certificate (AOC) from Vietnam’s Civil Aviation Administration.

Air Mekong is scheduled to provide passenger and cargo services on routes from Hanoi and Ho Chi Minh City to Danang, Nha Trang, Dalat, Phu Quoc, Con Dao, Ban Me Thuot, Hai Phong and Vinh.

Meanwhile, Blue Sky Air, Vietnam’s first joint private airline, will focus on services for industry, the agricultural and fisheries sector and the construction industry. It has been allowed to use helicopters, seaplanes and other kinds of airplanes.

Blue Sky already operates two airplanes and will gradually increase its fleet to meet the market’s demand. The carrier is registered to provide services on 20 routes to well-known Vietnamese commercial and tourist areas such as Vung Tau, Ninh Thuan, Dak Lak, Con Dao, Can Tho, Ca Mau and Phu Quoc.

Around 26.2 million passengers and 445,800 tonnes of cargo were transported by air in 2009, four times the number in 2000.

In the first seven months of this year, the country saw a 33 percent increase in air travel over the same period last year.

This number indicates that Vietnam’s air market has grown rapidly.

Vietnam has to date granted licences to nine operational airlines, including Vietnam Airlines, Jetstar Pacific Airlines, Vasco, Viet Air, Indochina Airlines, Mekong Air, VietJet Air, Blue Sky Air and Trai Thien Air.

Of these airlines, Vasco and Viet Air are both subsidiaries of Vietnam Airlines and Trai Thien Air only provides cargo services.

The national flag carrier Vietnam Airlines holds more than 80 percent of all domestic services

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Domestic air market becomes more competitive

The arrival of two new Vietnamese carriers Air Mekong and Blue Sky Air
is expected to stir up competition in the domestic market, which is
currently overloaded.

Air Mekong , Vietnam's third private air carrier, is scheduled to launch its maiden flight on October 10.

The airline has received delivery of four Canadian Bombardier CRJ 900
aircraft, owned by the US company Skywest Leasing. Each aircraft has
90 business and economy-class seats.

Truong Thanh Vu, Air
Mekong’s Commercial Director, said that his airline is currently waiting
for its Air Operator’s Certificate (AOC) from Vietnam’s Civil
Aviation Administration.

Air Mekong is scheduled to provide
passenger and cargo services on routes from Hanoi and Ho Chi Minh
City to Da Nang , Nha Trang, Da Lat, Phu Quoc, Con Dao, Ban Me
Thuot, Hai Phong and Vinh.

Meanwhile, Blue Sky Air, Vietnam’s first joint private airline, will focus on services for industry, the
agricultural and fisheries sector and the construction industry. It has
been allowed to use helicopters, seaplanes and other kinds of
airplanes.

Blue Sky already operates two airplanes and will
gradually increase its fleet to meet the market’s demand. The carrier is
registered to provide services on 20 routes to well-known Vietnamese
commercial and tourist areas such as Vung Tau, Ninh Thuan, Dak Lak, Con
Dao, Can Tho, Ca Mau and Phu Quoc.

Around 26.2 million passengers and 445,800 tonnes of cargo were transported by air in 2009, four times the number in 2000.

In the first seven months of this year, the country saw a 33 percent increase in air travel over the same period last year.

This number indicates that Vietnam’s air market has grown rapidly.

Vietnam has to date granted licences to nine operational
airlines, including Vietnam Airlines, Jetstar Pacific Airlines, Vasco,
Viet Air, Indochina Airlines, Mekong Air, VietJet Air, Blue Sky Air and
Trai Thien Air.

Of these airlines, Vasco and Viet Air are both subsidiaries of Vietnam Airlines and Trai Thien Air only provides cargo services.

The
national flag carrier Vietnam Airlines holds more than 80 percent of
all domestic services, which is attributed to the overloading of the
domestic market, particularly the routes from HCM City to Phu Quoc
and Da Nang./.

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