Surge in flights to trendy destination

Roger Mitton, Vietnam Correspondent

HANOI - Since Vietnam has become one of the region's most trendy tourist destinations, budget airlines have begun flocking here.

AirAsia, Jetstar, Nok Air and Tiger Airways all have flights to one or both of the nation's major cities, Hanoi and Ho Chi Minh.

On any given day, there are four budget flights from Ho Chi Minh City to Singapore and seven from Hanoi to Bangkok.

Said AirAsia chief executive officer Tony Fernandes: 'The growth potential in Vietnam's air travel market is significant.'

While the popularity of the budget airlines has caused established carriers like Singapore Airlines and Thai Airways to offer discounted fares to and from Vietnam, it has not forced any reduction in services.

In fact, a combination of Vietnam's increased attraction to tourists and businessmen, as well as the growing spending power of many middle- class Vietnamese, has led to an upsurge in air travel.

It has also led to the creation of Vietnam's first budget carrier, Pacific Airlines, which not only operates domestic services, but also flies to Bangkok and Singapore.

Plans to set up a second budget carrier, Vina AirAsia, were foiled last month when the government upheld objections from Vietnam Airlines and Pacific Airlines that the increased competition was inappropriate at this stage of the developing nation's airline industry.

But China's Viva Macau budget carrier will be allowed to start services on Dec 14, with four weekly flights between Macau and Ho Chi Minh City.

Currently, the budget carriers servicing Vietnam cater mostly to backpackers and Vietnamese nationals, who value cheap fares above all else.

Seat occupancy on budget flights to and from Hanoi and Ho Chi Minh can fluctuate from full to almost empty, and the fares also vary widely depending on the time and date of the flight.

Said Ms Nguyen Thuy Linh, a piano teacher at Hanoi's National Conservatory of Music: 'I travel by budget airlines because of the cheap fares, but I don't find them very convenient or comfortable. Their service is not as good as SIA or Thai Airways.'

This is not unexpected since the fares on budget airlines from Vietnam to Singapore and Bangkok are usually $80US ($116S) to $100US cheaper than the main carriers.

Even that kind of saving does not please everyone and there are gripes about lacklustre service and annoying rules like AirAsia's rule against taking snacks on board.

Said Mr Nguyen Huu Quy, sales manager of the Megastar Cineplex in Hanoi: 'I might be able to save up to $100US on a return flight to Bangkok or Kuala Lumpur, but that's not much considering the level of service I have to put up with.'

He recalled witnessing an AirAsia flight attendant's hostile reaction when some passengers made a complaint.

'She should have been more professional and not lost her temper,' he said.

Vietnam's own budget carrier, Pacific Airlines, has come in for similar criticism, though its service has improved after Australia's Qantas Airways paid $50US million for a 30 per cent stake in the airline last April.

The rest of the shareholding is held by Vietnamese government agencies.

Pacific now operates four second-hand Boeing 737-400s, all less than 15 years old. It plans to buy new planes next year, when it will introduce flights to KL and Siem Reap.

Travel agency manager Nguyen Xuan Thuy said: 'Pacific has advantages over Vietnam Airlines, because it has online booking, fewer delays and faster check-in times.'

Vietnam has been mercifully free of crashes and other incidents in recent years. Pacific Airlines, like the national carrier, is regarded as having a good attitude towards safety.

Said Dr Doan Van Quang, a former director of Vietnam's Institute of Aviation Sciences: 'I can say for sure that the government really keeps a good check on its airlines.'

Most budget carriers serving Vietnam use foreign pilots. In the case of Pacific Airlines, they are mostly Australian.

Dr Quang said: 'There is a shortage of pilots here, because we do not have adequate facilities to train them.'

As its maintenance partner, Pacific uses Singapore Technologies Aerospace, which also provides training courses for the budget airline's technical and support staff.