Vietnam Airlines purchases Boeing 787 to operate direct flights to the United States

In recent years, Vietnam's aviation industry has grown exponentially. According to recent news, Vietnam's three airlines are preparing direct flights to the United States and are expected to operate during the year.

Vietnam Airlines purchases Boeing 787 to operate direct flights to the United States

Vietnam-America route to reduce flight time by 8 hours

Three Vietnam Airlines, including Vietnam Airlines, plan to operate non-stop flights to the United States earlier this year. This saves about 8 hours.

Currently, the flight time from Ho Chi Minh, the domestic economic center, to San Francisco via Incheon International Airport in South Korea is 20.5 hours. Approximately 13 hours for direct flights to San Francisco and other major cities in the West Coast.

Economic relations between the two countries have grown steadily in recent years. The United States is the largest export destination of Vietnam-made products. From the perspective of ASEAN as a whole, the United States is a major customer, so it will be very meaningful that the air routes between ASEAN and the United States will be directly connected.

Vietnam's aviation safety standards, approval for direct flights to the United States

In February of this year, the Federal Aviation Administration of the United States approved a non-stop flight by a Vietnamese airline, stating that Vietnam complies with international safety standards. We have also awarded the Vietnamese Civil Aviation Organization a Category 1 rating under the International Aviation Safety Assessment Program. This means that all requirements for business licenses and operations are met.

So far, Vietnam has applied to the US Federal Aviation Administration for a direct flight permit, but has been postponed because it does not meet international standards in terms of accident response capabilities. This time, the Vietnamese airline has been granted permission to operate non-stop flights to the United States because it was evaluated as a Category 1 by the authorities.

Vietnam's LCC (Between), Vetjet and Bamboo Airways to Buy Boeing 787 Aircraft

Two LCCs (Cheap Airline Companies) Sign Boeing 787 Purchase Agreement in Hanoi

In February this year, two cheap Vietnamese airlines signed a $ 20.9 billion contract at the second summit of President Donald Trump and leader of the Democratic People s Republic of Korea Kim Jung Un in Hanoi.

VetJet Airlines has agreed to purchase 100 Boeing 737 MAXs for $ 12.7 billion. The deal will be 20 Max 8s, 80 new aircraft and a large Max 10. On the same day, VetJet Air signed a $ 5.3 billion long-term maintenance service for aircraft engines with General Electric in the United States. Vetjet has signed a contract of nearly 2 trillion yen for this transaction. Bamboo Airways, which began operation in January this year, has also signed a contract to purchase more than $ 2.9 billion of Boeing 787.

President Trump welcomed, saying, "Going forward as a partner will bring great prosperity and success for the American and Vietnamese people."

Vietnamese airlines start with flights to major cities with Vietnamese communities such as San Francisco. After that, it will gradually expand its services to other major cities such as Washington and Chicago.

Brin Boo Airways CEO Trinh Van Quyet said:

“There was a strong need for direct flights to the United States between tourists visiting Vietnam and Vietnamese living abroad. In the next three years, we will focus on expanding services especially to the United States and Europe.”

During the Vietnam War, wealthy Vietnamese in southern Vietnam emigrated to the West Coast of the United States. There are many successful Vietnamese Americans such as Henri Gwen known as the man who introduced McDonald's to Vietnam and David Thai who founded Highland Coffee.

According to the Vietnam Tourism Board, approximately 690,000 people traveled from the United States to Vietnam in 2018, an increase of 12% year-on-year and 60% year-on-year. The United States is the 4th most popular tourist in Vietnam, following China, South Korea and Japan. The number of visitors from Vietnam to the United States has expanded to over 100,000.

Vietnam Airlines will not make a profit for the next 5 years

Vietnam Airlines CEO Duong Tri Thanh told local media that he would lose $ 30 million in direct flights to the US in the first year. It also says it will take at least five years to generate revenue from direct flights.

Market growth and intensification for both international and domestic flights in Vietnam

The domestic Vietnam market will become increasingly competitive over the next few years. In addition to Bamboo Air, Beto Travel, a major travel agency, has applied for permission to establish an airline.

Only airlines that can survive in the domestic services market will continue to offer flights to the United States. “The road ahead,” said Trinh Van Quyet, CEO of Banbuea.

“With the goal of becoming a five-star airline, we strive to differentiate ourselves from our domestic competitors by improving our service quality.”

Only 11 companies worldwide are currently rated 5 stars by the British airline rating company Skytrax, and we expect a tough journey.

 

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