Budget Hanoi to Bangkok airfares about to take-off

The carrier is expected to boost air travel between the two cities as Thailand is a cheap destination for Vietnamese tourists who can currently go on a five day tour for around $270 with much of this charge paid for airfare. Thai AirAsia will become a direct competitor with Vietnam Airlines and Thai Airways, which are offering a total of three daily flights between the two capitals.
However Nguyen Tuyet Mai, outbound manager of Viettravel, Hanoi said if the low-cost, no frills flights were launched between Hanoi and Bangkok, only individuals would benefit from the services.
“We will not use the low fare services for our package tours because these flights have strict rules and are inconvenient for a group tour,” said Mai.
She pointed out that the flight schedule of budget airlines was inconvenient and travel agents could not book different airfare rates for a group tour.
“For budget flights, airfare varies a lot and charges depend on the time of bookings,” said Mai.
Moreover, travel agents like Viettravel are offered special airfares by Vietnam Airlines and Thai Airways, she said.
Thai AirAsia is a subsidiary of Malaysia-based AirAsia Bhd, the region’s biggest budget carrier. AirAsia owns 49 per cent of Thai AirAsia, while Thailand’s Shin Corp. holds the remaining 51 per cent. Thai AirAsia’s expected flights will come just two months after another low cost carrier, Tiger Airways, launched flights from Hanoi and Ho Chi Minh City to Singapore.
Tiger Airways chief representative Ta Viet Tien told Vietnam Investment Review the occupancy rate for Ho Chi Minh City-Singapore flights was around 90 per cent and 55 to 60 per cent from Hanoi.
“Ho Chi Minh City is a bigger market than Hanoi. There are more people who go between Ho Chi Minh City and Singapore for tourism, business and healthcare,” said Tien.
Tiger Airways charges $25 to $150 a one-way ticket between Vietnam and Singapore. Tien said the $25 rate was only offered to “early birds” and the airfare would go higher when less seats were available. Tien said passengers with Visa and MasterCard could book Tiger Airways through its website. Otherwise, they could go to booking agents in Hanoi and Ho Chi Minh City.