Vietnam's first private airline licensed, plans to fly in 2008

Dec 20, 2007, 7:10 GMT

Hanoi - Vietnam's first private airline, VietJetAir, plans to operate its first commercial flight late next year, a company executive said Thursday at the official licensing ceremony.

The airline plans to initially operate flights between Hanoi, Ho Chi Minh City and Danang City, using either Boeing 737 or Airbus A320 aircrafts, VietJetAir general director Nguyen Duc Tam said.

Domestic flights are currently provided exclusively by the government-owned flag carrier Vietnam Airlines, and its wholly-owned subsidiary Pacific Airlines. Tour operators and travelers have long complained about the absence of alternatives.

'We will compete with existing airlines with customer services and prices, which will be both competitive but still profitable,' said Robert Hugh, the company's public relation officer. 'Our strategy is to go after overpriced and under-served routes.'

With chartered capital of 600 billion dong (37.5 million dollars), the airline plans to lease between three and five airplanes for operations in the first year.

'We haven't signed an aircraft-hiring contract yet, but we will hire planes from international agencies,' said general director Tam.

VietJetAir plans to follow the model US's Southwest Airlines, focusing on such factors as city-to-city flights, short-haul flights of between one and four hours, two-class cabin, service around the clock, using one type of planes and broad ticketing channels, including through the internet.

'Building a safe airline as well availability of aircraft is the determining factor for us now,' said Ted Walters, director of flight operations of VietJetAir. 'Safety and convenience for our passengers is our first priority.'

The company plans to eventually fly to all 60 domestic airports in Vietnam and also to serve regional destinations, such as Singapore, Hong Kong, Bangkok, South Korea and Japan.