BFF-34 Vietnam Airlines secures first license for direct US flights

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VIETNAM-US-AVIATION-TRAVEL

Vietnam Airlines secures first license for direct US flights

HANOI, Sept 5, 2019 (BSS/AFP) – Vietnam Airlines has become the first
carrier in the country to secure a coveted license to fly direct to the
United States, according to the airline and a regulatory filing seen by AFP.

The approval has for months been sought by Vietnamese carriers eager to
exploit a fast-growing market for air travel among Vietnam’s booming middle
class.

Domestic and regional air travel has mushroomed among Vietnamese
travellers, and carriers are hoping the market will extend to US travel too.

Vietnam Airlines has been licensed to fly from Hanoi and the southern
business hub Ho Chi Minh City to Los Angeles, San Francisco, New York,
Seattle and Dallas, according to a regulatory filing from the US Department
of Transportation obtained by AFP.

The carrier will also be able to connect to Vancouver, Montreal and
Toronto in Canada, it said.

The terms, which came into effect on August 26, cover “air transportation
of persons, property and mail” between the Vietnamese and North American
cities.

It was not immediately clear if the flights would be non-stop or would
transit through Taipei, Osaka and Nagoya, which were listed as approved
intermediate hubs in the filing.

The national carrier confirmed the approval on Thursday, calling it “an
important move by Vietnam Airlines in preparing its plan to fly to the US in
the coming time”.

It did not say when the first flight could take to the skies.

The regulations were announced after the US Federal Aviation Administration
in February awarded Vietnam a “category 1” rating, meaning airlines from the
country can fly to the United States.

Vietnam’s newest airline Bamboo Airways has also said it plans to fly to
the US by the end of this year, with budget carrier VietJet expressing
interest as well.

Vietnam’s aviation sector has soared in recent years, with passenger
numbers jumping from 25 million in 2012 to 62 million last year.

Tourist visits from the US have also climbed, jumping nearly 60 percent in
the past five years.

Aviation analyst Greg Waldron said a move into the US market is a big bet
for Vietnam Airlines, which will face tough competition from established hub
carriers in Taiwan, South Korea and China.

Visa issues could also create obstacles — both US and Vietnamese
travellers require entry permits for travel — along with the steep costs
required to run long-haul routes.

“There are some serious competitive and practical restraints facing
(Vietnam Airlines),” said Waldron, Asia managing editor at Flightglobal.

Last year Singapore Airlines launched the world’s longest direct flight
with its route to Newark, New Jersey, topping out at 19 hours and 15,290
kilometers (9,500 miles.

BSS/AFP/RY/1610 hrs