Vietnam Airlines sells cheap air tickets as aviation market heats up

Vietnam Airlines, the nation’s flag air carrier, has decided to join hands with Jetstar Pacific to market cheap air tickets priced from VND11,000 to VND1 million for both domestic and international routes.

The airline plans to launch tickets priced at VND299,000 for one-way flights on domestic routes and VND899,000 (US$39) for two-way flights on international routes. 

The airfares will be applied to flights with departure from April 6 to October 31, 2017 on many air routes of Vietnam Airlines.

Meanwhile, Jetstar Pacific will launch special tickets at prices from VND11,000 for domestic and international flights.

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Vietnam Airlines has cooperated with 15 partner travel firms to market package tours with discount rates of up to 50% for domestic tours and 30% for outbound tours.

Analysts said that the move by Vietnam Airlines shows its determination to retain its strength amid fierce competition from its rivals. 

Vietjet Air has been witnessing steady growth since it provided the first commercial flights in late 2011. The air carrier reported a high 151% growth rate a year in the 2012-2015 period.

By the end of 2012, Vietjet held 8% of the domestic market share, while Vietnam Airlines dominated domestic flights with 70% of the market share. 

However, by 2015, Vietjet’s market share had risen to 37.1%, while Vietnam Airlines’ had fallen to below 47%.

By the end of 2016, the market share of the two airlines was almost equal – 42% and 41%. With its strong growth, some analysts predicted that Vietjet would surpass Vietnam Airlines in 2017.

The pressure on Vietnam Airlines has increased as Air Asia, the Malaysian low-cost air carrier (LCC), has announced it will enter the Vietnamese market by setting up a joint venture with a Vietnamese partner.

Pham Chi Lan, a respected economist, once warned that if Vietnam Airlines does not cut airfares and apply flexible airfare policies, it would lose its position in the aviation market. 

Vietnam Airlines on March 23 proposed to the Ministry of Transport to set floor and ceiling airfares for domestic routes.

The document sent to the ministry shows that Vietnam Airlines now has 13 short-distance domestic routes (less than 500 kilometers), or 26 two-way flights. Of these, only eight bring profits (30%), while 18 others bring losses (70%).

Vietnam Airlines ramps up 175 flights on reunification holiday

The national flag carrier Vietnam Airlines will increase 175 flights on eight domestic routes from April 27 to May 3 to meet increasing demand during the National Reunification Day and International Labour Day.

The extra flights will offer 180,000 seats, rising 25% against normal days and 15% from the same period last year.

The additional flights are on routes connecting cities with big demand for travel such as Hanoi and Ho Chi Minh City with major tourist destinations including Danang, Nha Trang and Phu Quoc.

Of which, the Hanoi/HCM City- Danang will have the most added flights with over 100 trips, followed by Hanoi/HCM City- Phu Quoc island with 40 trips and Hanoi/HCM City- Nha Trang with 18 trips.

According to a representative from Vietnam Airlines, tickets are on sale as usual and updated continuously.


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