Vietnam Airlines and Pacific Airlines on August 18 opened for sale air tickets from VND98,000 for flights between Hanoi and Da Nang, Chu Lai, Hue, Vinh, and between HCM City and Da Lat, Nha Trang, Phu Quoc and Quy Nhon. If counting taxes and fees, passengers will pay VND558,000 per leg.

The development of Covid-19, plus the low season, has led to a serious drop in travel demand

If passengers fly from HCM City to Hanoi, Hai Phong, Thanh Hoa and Vinh, the airfare would be VND198,000, or a total cost of VND668,000 including taxes and fees.

These listed prices will be applied to flights from September 7, 2020 to March 31, 2021.

As such, air tickets will be cheaper than ever in the next six months. This is the low travel season in the year, when students return to school.

Air carriers have started the 2021 Tet sale season. The Vietnam Airlines Group, which includes Vietnam Airlines, Pacific Airlines and VASCO, is offering more than 2 million seats for the holiday, while Vietjet Air is offering 1.5 million tickets for all domestic routes.

Cheap tickets have sold out on some routes, but these are the ‘hottest’ routes, including HCM City – Hanoi, HCM City – Hue and HCM City – Da Nang. Cheap air tickets for other routes are still available.

Vietjet has launched 2.6 million super-economy tickets with very low prices from VND2,021, not including taxes and fees for all flights with departure points in the northern, central and southern regions on Tet holiday.

Vietjet has launched 2.6 million super-economy tickets with very low prices from VND2,021, not including taxes and fees for all flights with departure points in the northern, central and southern regions on Tet holiday.

On August 18-22, the super-economy tickets will open for sale, without any limitation on time frame, to be applied to flights between August 18, 2020 and February 28, 2021.

During that time, the passengers booking tickets for flights on 50 domestic air routes of the air carrier on August 12 – October 24 will get 15 kilograms of checked-in baggage and 7 kilograms of carry-on baggage free of charge.

Analysts say that it has never been before been so cheap to fly within Vietnam. One can pay only VND3.7 million total to fly between Hanoi and Hue on the 2021 New Year holiday with Vietjet Air, with free baggage fee.

Prior to that, Bamboo Airways, on the occasion of its second establishment anniversary, on August 18-19 sold three kinds of tickets, which were the cheapest ever available at the airline – VND18,000, VND188,000 and VND1.888 million, not including taxes and fees. The flights will depart between August 20, 2020 – January 31, 2021.

In general, Bamboo Airways’ tickets are equal to or a little lower than Vietnam Airlines. But this is the first time the air carrier has set such low airfares.

The Covid-19 crisis has dealt a strong blow on airlines, with the biggest losses ever recorded.

Vietnam Airlines reported modest revenue of VND24.934 trillion in H1, a 50 percent decrease compared with the same period last year. Its pre-tax profit was minus (-) VND6.542 trillion, while it was plus (+) VND1.785.7 trillion in the same period last year.

Vietjet Air is facing the same problem. It reported revenue of VND1.97 trillion in Q2 from passenger transport and supporting services, a sharp fall of 80 percent compared with the same period last year, and pre-tax loss of VND1.165 trillion.

As for Bamboo Airways, the carrier reported a loss of VND1.5 trillion in Q1, while there has been no report about Q2 and H1.

In a document to the Prime Minister calling for help, the Vietnam Aviation Business Association said though airlines have been applying measures to mitigate losses, including cutting total costs by 50-70 percent, negotiating with partners to debt payment extension, selling aircraft, and cutting pay of staff, they are still incurring serious cash flow problems.

The association asked to create favorable conditions for airlines to access the VND25-27 trillion credit package at preferential interest rates for 3-4 years, extend the time for aviation service remissions until the end of 2021, and cut aviation service fees by 50 percent.

It also asked the Prime Minister to seek the National Assembly Standing Committee’s permission to cut the environmental protection tax on air fuel at least until the end of 2021. 

Ngoc Ha

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