Vietnam - United Airlines announces daily service

Vietnam flight to make history

UNITED TO FLY OUT OF S.F. THURSDAY

By K. Oanh Ha

San Jose Mercury News

When United Airlines Flight 869 takes off Thursday from San Francisco
bound for Ho Chi Minh City, it will carry 347 passengers and much
symbolism. The historic flight is a milestone in the reconciliation of
former enemies that began a decade ago with the United States lifting
its trade embargo on Vietnam.

United will be the first American carrier to fly directly into Vietnam
since the war ended in 1975, when Ho Chi Minh City was still called
Saigon.

The flight is the latest sign of a relationship between the United
States and Vietnam that is getting both broader and deeper, on
everything from commerce to fighting drugs and terrorism. And some
Silicon Valley businesses and Vietnamese-American entrepreneurs see the
flight as a symbol that the time is right to do business in Vietnam.

For a vocal minority of fiercely anti-communist immigrants, the flight
deepens a sense of resignation. But many others are happy to see a more
normal and cooperative relationship between the two nations.

``It makes me feel like we're healing the wound that's lasted for so
many years, for so many of us,'' said Sam Nhin, a boat refugee who fled
the country and resettled in the United States in 1979. He heard about
the inaugural flight and booked seats for himself and his wife. He runs
WestCoast Precision, a Sunnyvale machine parts company, and wants to
explore opening a facility in Vietnam.

``I wouldn't be going if it weren't for the United flight,'' he said.
``It's a good opportunity to see what kind of support the Vietnamese
can provide to secure the investments of investors.''

United Airlines will offer daily flights to Vietnam, with a stopover in
Hong Kong. The flight is part of a larger expansion plan into Asia for
United, said Graham Atkinson, senior vice president for worldwide
sales. The company is launching at least three routes to Asia by next
year and anticipates that revenue from the profitable Asian market will
jump to more than 25 percent of total sales by next year, up from 18
percent.

Joining Nhin on the booked flight will be members of the Vietnamese
Silicon Valley Network, who are the first group of Vietnamese-American
professionals to sponsor a technology conference to attract investors
to Vietnam's nascent technology industry.

California is home to about 500,000 Vietnamese-Americans, the largest
population of Vietnamese outside of Vietnam. The flight will also help
commerce in the Bay Area, home to about 120,000 Vietnamese-Americans.

The flight is ``a very good signal for the two countries,'' said
Frances Zwenig, the senior country director of the US-ASEAN Business
Council who also served as Sen. John Kerry's chief of staff in his push
to normalize relations with Vietnam. ``This is pretty amazing coming
from an absolute dead stop.''

In 1994, the United States lifted the trade embargo. In 2001, the two
countries resumed normal trading relations after a trade agreement.

Americans now represent the second-largest group of tourists to Vietnam
(after the Japanese) and many fly there using Asian carriers such as
Cathay Pacific and Asiana.

For its part, Vietnam hopes the move will encourage U.S. trade and
tourism for the country of 80 million people, said Tran Tuan Anh, the
Vietnamese Consul General in San Francisco.

``San Francisco is a jumping-off point for the Pacific,'' said Zwenig.
``There will be more business opportunities for California, especially
at the small- and medium-enterprise level. The Vietnamese reward their
friends.''

U.S.-Vietnam trade this year is at least $4.8 billion, up from nearly
$3 billion in 2002.

Even though an American flight to Vietnam may seem like a small step,
it removes a psychological barrier for some in the Vietnamese-American
community. Though many Vietnamese-Americans go back to visit, many are
still leery about investing in the home country.

``There may be a comfort zone issue. People may think, `If United can
fly back to Vietnam, it's OK for me to go back there and do business,'
'' said Jeremy Potash, executive director of the California-Asia
Business Council in Oakland.

But not all Vietnamese-Americans appreciate the fledgling and friendly
relationship between the two governments. Some in the community, mostly
former South Vietnamese military men and those who suffered the
brutality of re-education camps after the communist takeover, have long
held out hope that the communist regime could be toppled if it remained
economically isolated by the United States. The groups often protest
other Vietnamese that work directly with the communist government. Many
are angered by any reference to Ho Chi Minh, founder of what became the
Communist Party in Vietnam.

In fact, United had to rewrite the original ads for the service because
some Vietnamese-language newspapers, including ones in San Jose, were
skittish about the ad mentioning Ho Chi Minh City (and also Saigon) as
the destination. United then took out the Ho Chi Minh City reference
and marketed it as a direct flight to Vietnam, said Steve Roth,
spokesman for the airline.

Vietnamese war veterans, such as Phu Nguyen, president of the
Vietnamese Veterans Association of San Francisco, bristle at the notion
that America is shaking hands with a country that the United States
placed on a list of ``countries of particular concern'' for its
violations on human rights and religious freedom. But Phu, who is known
for organizing protests, said he won't be picketing the flight.

``All this commerce brings riches to only the Communist Party
members,'' said Nguyen. ``But it's useless to protest it. Everybody
wants to do business with Vietnam now. We can't stop that anymore.''

--------------------------------------------------------------------------------
Contact K. Oanh Ha at or (408) 278-3457.
http://www.mercurynews.com/mld/mercu...0357538.htm?1c

http://vietnamnews.vnagency.com.vn/2...Stories/17.htm

Vietnam Airlines to fly direct to US

HA NOI - Vietnam Airlines, the national flag carrier, has just
announced that it will open a direct flight to the US late next year as
a way to enhance its competitive edge, said the flagship's general
director, Nguyen Xuan Hien.

"There are many components to opening a direct flight including fleet
expansion, technology, resources, and market interest," said its
spokesman Nguyen Chan.

The US is one of Vietnam Airlines' targeted markets. To compete with
international carriers, it has also just signed contracts to purchase
10 Airbus A321s aircraft and four Boeing 777-200ERs.

In addition, to prepare for the future route the national carrier has
signed a code-share contract with American Airlines and it will be
likely to sign a similar contract with United Airlines, Chan said.

United Airlines opened the first US-Viet Nam commercial flight since
1975 last Thursday, flying San Francisco-Hong Kong-HCM City.

However, Vietnam Airlines is encountering hurdles in negotiating with
other countries and territories for transit permission, including
Taiwan. Taiwan has only allowed Vietnam Airlines to fly over their land
if they are entitled to exploit the HCM City-Paris route.

Passenger demand for the route is currently modest, thus the present
market has made it impossible to begin the flight route earlier than
planned.

Chan affirmed that direct flights between the two countries are
progressing towards full normalisation, and are assessed as promising,
as no other carrier uses those direct routes.

"The airline would like to launch the direct route in conjunction with
Viet Nam officially becoming a member of the World Trade Organisation,
proposed for the end of 2005," Chan said.

Chan added that at that crucial moment, the investment and trade flow
into Viet Nam will increase as Vietnamese markets become more
attractive, and demand from foreign enterprises will rise as a result.

The flight is a solidification of the bilateral aviation agreement
signed by Viet Nam and the US last year.

By 2005, Vietnam Airlines will have use of 40 aircraft, including eight
Boeing 777s, four 767s, 10 Airbus A320s, seven Airbus A321, nine ATR
72s and two Fokker 70s, half of which are owned by the carrier. - VNS

http://vietnamnews.vnagency.com.vn/2...Stories/17.htm

Vietnam Airlines to fly direct to US

HA NOI - Vietnam Airlines, the national flag carrier, has just
announced that it will open a direct flight to the US late next year as
a way to enhance its competitive edge, said the flagship's general
director, Nguyen Xuan Hien.

"There are many components to opening a direct flight including fleet
expansion, technology, resources, and market interest," said its
spokesman Nguyen Chan.

The US is one of Vietnam Airlines' targeted markets. To compete with
international carriers, it has also just signed contracts to purchase
10 Airbus A321s aircraft and four Boeing 777-200ERs.

In addition, to prepare for the future route the national carrier has
signed a code-share contract with American Airlines and it will be
likely to sign a similar contract with United Airlines, Chan said.

United Airlines opened the first US-Viet Nam commercial flight since
1975 last Thursday, flying San Francisco-Hong Kong-HCM City.

However, Vietnam Airlines is encountering hurdles in negotiating with
other countries and territories for transit permission, including
Taiwan. Taiwan has only allowed Vietnam Airlines to fly over their land
if they are entitled to exploit the HCM City-Paris route.

Passenger demand for the route is currently modest, thus the present
market has made it impossible to begin the flight route earlier than
planned.

Chan affirmed that direct flights between the two countries are
progressing towards full normalisation, and are assessed as promising,
as no other carrier uses those direct routes.

"The airline would like to launch the direct route in conjunction with
Viet Nam officially becoming a member of the World Trade Organisation,
proposed for the end of 2005," Chan said.

Chan added that at that crucial moment, the investment and trade flow
into Viet Nam will increase as Vietnamese markets become more
attractive, and demand from foreign enterprises will rise as a result.

The flight is a solidification of the bilateral aviation agreement
signed by Viet Nam and the US last year.

By 2005, Vietnam Airlines will have use of 40 aircraft, including eight
Boeing 777s, four 767s, 10 Airbus A320s, seven Airbus A321, nine ATR
72s and two Fokker 70s, half of which are owned by the carrier. - VNS

If Vietnam wants to expand its influence and reach to Americans and
Vietnamese Americans it could set the promotional price real low for
the first few years. While Vietnam Airlines would not make money but
the popitical gains against resitance from anti-communist groups in
America will be much greater. Companies such as Amazon.com, Yahoo.com
and many startup companies in the U.S. have used this strategy of low
price to gain customers and market power with great success. As Vietnam
Airlines continues to be subsidized by Vietnamese government, it has a
lot of rooms to cut price.



wrote:
http://vietnamnews.vnagency.com.vn/2...Stories/17.htm

Vietnam Airlines to fly direct to US

HA NOI - Vietnam Airlines, the national flag carrier, has just
announced that it will open a direct flight to the US late next year
as
a way to enhance its competitive edge, said the flagship's general
director, Nguyen Xuan Hien.

"There are many components to opening a direct flight including fleet
expansion, technology, resources, and market interest," said its
spokesman Nguyen Chan.

The US is one of Vietnam Airlines' targeted markets. To compete with
international carriers, it has also just signed contracts to purchase
10 Airbus A321s aircraft and four Boeing 777-200ERs.

In addition, to prepare for the future route the national carrier has
signed a code-share contract with American Airlines and it will be
likely to sign a similar contract with United Airlines, Chan said.

United Airlines opened the first US-Viet Nam commercial flight since
1975 last Thursday, flying San Francisco-Hong Kong-HCM City.

However, Vietnam Airlines is encountering hurdles in negotiating with
other countries and territories for transit permission, including
Taiwan. Taiwan has only allowed Vietnam Airlines to fly over their
land
if they are entitled to exploit the HCM City-Paris route.

Passenger demand for the route is currently modest, thus the present
market has made it impossible to begin the flight route earlier than
planned.

Chan affirmed that direct flights between the two countries are
progressing towards full normalisation, and are assessed as
promising,
as no other carrier uses those direct routes.

"The airline would like to launch the direct route in conjunction
with
Viet Nam officially becoming a member of the World Trade
Organisation,
proposed for the end of 2005," Chan said.

Chan added that at that crucial moment, the investment and trade flow
into Viet Nam will increase as Vietnamese markets become more
attractive, and demand from foreign enterprises will rise as a
result.

The flight is a solidification of the bilateral aviation agreement
signed by Viet Nam and the US last year.

By 2005, Vietnam Airlines will have use of 40 aircraft, including
eight
Boeing 777s, four 767s, 10 Airbus A320s, seven Airbus A321, nine ATR
72s and two Fokker 70s, half of which are owned by the carrier. - VNS

I wonder who will fill the seats of VN Air from Saigon to San Fran.
The VN businesses have hardly any US operation. Tourist visas are
issued only to very old people with substantial assets. Foreigners
will prefer other airlines for service, safety and convenience. Could
it be the Viet Kieu market they're targeting? Yes, it is. Unless they
can enter into a code-sharing agreement with a major US airline, there
won't be anyone to feed them the passengers, or anyone to carry
arriving passengers to other US destinations. Any price cut to attract
customers will be matched immediately by United and other rivals that
fly that route. In the end, VN Air will realize how tough it is to
compete in the US market.

http://vietnamnews.vnagency.com.vn/s...um=01TAS130105

United Airlines opens HN office

United Airlines yesterday opened its second office at the Hilton Ha Noi
Opera following the first office set up last November in HCM City.
Also, the carrier launched a direct San Francisco-Hong Kong-HCM City
flight last month, making it the first US carrier to launch a direct
flight between Viet Nam and the US since 1975. Viet Nam News spoke to
Mark Russell, the airline's managing director in the south Pacific,
for information about the flight and opportunities for increased trade,
investment, tourism and aviation between the two nations.

Does your direct flight between Viet Nam and the US still stop in Hong
Kong?

We call it a direct flight because the flight number goes all the way
through to San Francisco. We chose San Francisco because it is our
largest hub on the West Coast and there are many Vietnamese communities
on the West Coast.

Non-stop is quite like where there is no intermediate stop. Direct, in
airline language, just means a through flight number.

Do your flights pick up passengers in Hong Kong?

We do have traffic between Hong Kong and Viet Nam's HCM City. It was
important when we set up the route that there was some traffic there,
because that additional business helps support the investment of the
new route.

We are going from no service to a daily 747, and that is a very big
jump. So coming via Hong Kong meant that we could have two markets, the
US market and the Hong Kong market as well as the market from Viet Nam
to Hong Kong and the US.

Do you have any plans to open a non-stop flight between the two
nations?

We have no immediate plans now, our priority is to make this service a
success.

Viet Nam Airlines plans to open a direct flight between the two
countries by late 2005 or early 2006, what do you think about this?

Competition is good, it's good for customers and good for developing
the market. One of the reasons why United Airlines has come to Viet Nam
is because of the strength of the market here and its growth. It's
one of the fastest growing travel markets in the world. So, if Viet Nam
Airlines starts service, we wish them well and we will compete with
them.

The Ha Noi office is United Airlines' newest one in the world. How
many offices do you have world-wide now?

I don't know exactly how many offices we have world-wide. It would be
quite a few hundred, we have 200 destinations world-wide. Specifically,
in Asia we have right now 12 destinations. We have expanded that
network in 2004, and our flight to Viet Nam in the December of 2004 is
the latest and newest destination. At the end of March this year, we
will commence services from Mongolia to San Francisco, and that will be
next, newest destination.

What are activities of United Airlines to boost Viet Nam's image to
the US market?

We see significant potential for in-bound business to Viet Nam from US.
Viet Nam has the extremely attractive potential to be a leisure and
tourism destination of US people for many reasons such as culture,
historical interest, beaches, golf, adventure holidays, and others.

Within the US, United Airlines obviously has a large sales force in all
states within the US and a strong marketing team based in Chicago.

Of great importance to us is our "mileage plus" data base. We have 40
million people on that database, that's half the population of Viet
Nam. We will be communicating to that database and giving them reasons
to fly to Viet Nam using their frequent flier miles.

We will be bringing a number US delegations to Viet Nam over the next
twelve months. Many tour operators and travel agencies in the US are in
contact with us and we are in contact with them about bringing them
over here on familiarisation trips.

With our in-flight magazine (Hemisphere), we will have stories about
Viet Nam. The magazine is on every United Airlines' craft world-wide
and we are promoting and speaking about Viet Nam.

We are also in the middle of making a short video documentary of the
first arrival flight (United Airlines to Viet Nam) as well as about
Viet Nam, which we hope to show to our customers and our own staff.

United Airlines has 62,000 staff world-wide, and all of those staff are
active ambassadors of our flight to Viet Nam.

As you know, our flight also comes via Hong Kong, we have traffic light
between Hong Kong and Viet Nam.

So also there is additional work going on in Hong Kong to promote Viet
Nam as an additional destination.

Hong Kong residents, both western and Chinese just recently we took a
large group of travel agents from Hong Kong to HCM City to show them
the attraction of Viet Nam. - VNS