Vietnam Airlines delays US services
HANOI – National flag carrier Vietnam Airlines is believed to have submitted proposals to authorities to delay for the second time the opening of direct flights to the United States until late 2008.
Pham Ngoc Minh, deputy general director of Vietnam Airlines attributed the strong competition in the US market and regulatory hurdles for the delay.
Minh said Americans, given a choice, preferred to fly with a US carrier rather than a foreign competitor.
Strict US security requirements and the use of air marshals posed challenges for Vietnam airlines.
The Vietnamese carrier is required by the US authorities to provide a list of passengers and their personal information four hours before take-off.
The airline said it expected losses of US$20-30 million in the first year of the Vietnam-US route operation, but could recover the losses in 3-4 years
Prime Minister Nguyen Tan Dung had asked Vietnam Airlines to open the Vietnam–US direct route as soon as possible. He said the move would have “great social and political significance.”
United Airlines plans to start a daily Ho Chi Minh City – Los Angeles route on October 29. Currently, United operates daily flights from HCMC to Hong Kong with a continuing non-stop service to San Francisco.
Ian Jarrett
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