Low demand prompts airlines to cut fares, drop service

Decreasing demand for air travel after the summer rush has forced Vietnam Airlines to slash its fares and Jetstar Pacific to suspend its daily service between Hanoi and Nha Trang which was launched in early June.

Vietnam Airlines on Monday announced that it would knock more than 50 percent off the fares for many domestic flights as one of its programmes to diversify fares and to encourage domestic air travel in the low season.

The big discount pushes one-way fares down to the range of between 400,000 dong (roughly $20) and 860,000 dong applicable for bookings and departure flights from September 15 to October 30 this year. These rates do not include taxes and surcharges.

The national flag carrier will sell more than 300,000 discount tickets during the period, or nearly 7,000 tickets a day on its website at www.vietnamairlines.com, booking offices and agents for the flights between Hanoi and HCM City, and between these cities to other destinations in Vietnam.

Vietnam Airlines now flies to almost all business and tourist spots in the country, including Nha Trang, Hue, Da Nang, Tam Ky, Quy Nhon, Tuy Hoa, Dong Hoi and Vinh in central Vietnam, Phu Quoc, Can Tho and Rach Gia in the south, and Da Lat and Buon Ma Thuot in the Central Highlands among others.

Vietnam Airlines announced the big programme of discount fares one week after Jetstar Pacific sold one-way air tickets from 315,000 dong (some $16) for the flights from Hanoi and HCM City to Da Nang or vice versa, 600,000 dong for the HCM City-Hai Phong service, and from 615,000 dong for the HCM City-Hanoi run.

Jetstar Pacific’s discount fares apply to the flights between September 7 and October 27, which is said by local airlines and travel firms to be the low season for the domestic tourism market segment after the summer vacation.

Because of low demand for air travel, Jetstar Pacific suspended its two daily flights between Hanoi and Nha Trang, the latter being one famous destination in central Vietnam for vacationers rather than business people.

Jetstar Pacific told the Daily that it operated Hanoi-Nha Trang services from June to September 5 to meet surging demand in the summer time. The route drop left Hue, Da Nang and Vinh the only three destinations in central Vietnam that the carrier now has daily flights to.

Usually, the low tourism season in Vietnam starts from September till November, leading to a sharp fall in the domestic demand for air travel, especially to central Vietnam. – Saigon times

Tags: Vietnam airlines, Vietnam aviation, Vietnam aviation industry, Vietnam aviation market