Vietnam Airlines plans sole fare
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Vietnam Airlines lifted third-quarter revenue more than 67 percent over the previous quarter.
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HANOI, Vietnam (Reuters) -- Flag-carrier Vietnam Airlines is to drop its two-tier price system for Vietnamese and other passengers from January 1 to boost tourism.
"We will apply the same price for Vietnamese and foreigners," Nguyen Tan Chan, spokesman for the unlisted state-run carrier, told Reuters Wednesday.
Non-Vietnamese have been paying around 20 percent more on fares for domestic flights. In addition, visitors typically pay more than locals for electricity and for rooms at domestic hotels.
A round trip ticket from capital Hanoi to the commercial hub of Ho Chi Minh City costs 3.3 million dong ($212) for visitors while locals pay 2.7 million dong.
Fares for that route would be reset to three million dong for everyone from January 1, which means Vietnamese travelers would have to pay more and visitors will obtain a modest discount.
Unlisted Pacific Airlines, Vietnam Airlines's sole smaller domestic competitor, is also expected to apply a one-price system to all travelers from January 1, state media said.
"The abolition of price discrimination will help attract more foreign tourists to the country," said Hoang Anh Tuan, director from ATC Travel who retails tickets for Vietnam Airlines.
Vietnam Airlines posted a 67.5 percent surge in third quarter revenues to $196 million from the second quarter as travel bounced back after the containment of the deadly flu-like SARS virus outbreak.
The Southeast Asian country was declared free from SARS in late April but the outbreak still deterred tourists, with the number of foreign visitors during the year to November down 12.1 percent to 2.11 million.
Around 20 international airlines operate direct and code-share flights to Vietnam, including major carriers such as Air France, Singapore Airlines and Hong Kong's Cathay Pacific.
An aviation agreement expected to be signed this week will permit direct flights between the United States and Vietnam for the first time since the end of the Vietnam War in 1975.
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Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
