VN Airlines gets closer to deal with US
HA NOI (March 19, 2003)— The next round of negotiations over a US-Viet Nam bilateral aviation pact, allowing direct flights between the two countries, will be held in the next quarter of this year in Washington, a Vietnam Airlines official said on Monday.
This follows real progress made in last week’s third round of talks in Ha Noi, according to Viet Nam Civil Aviation Authority vice chairman Pham Vu Hien, who said it helped the two sides to fill gaps. But they will have to continue discussing and studying proposals for a final deal, he admitted.
Laura Faux-Gable, head of the US delegation, said the meeting was productive and a good sign for both sides to continue building an aviation relationship.
"We have agreed to meet again in June in Washington for the next round of negotiations," she said.
The US delegation included representatives from major carriers like United Airlines, American Airlines, Federal Express and Continental Airlines.
With the US market accounting for 10 per cent of Viet Nam’s aviation market, US airlines have long lobbied for direct access to Viet Nam. For the moment, they have to make do with code sharing agreements with other carriers that operate here to access the Vietnamese market.
Tourism in Viet Nam is on the rise and more overseas travel by Vietnamese is expected to further boost demand for passenger flights.
Airbus deal gets PM’s nod
Meanwhile, Prime Minister Phan Van Khai has approved a Vietnam Airlines plan to buy five Airbus A321-200 aircraft, and 11 engines and accompanying installation devices, for 300 million euros (US$330 million).
The European Airbus Industrie said it will start delivering the passenger planes from November this year through 2004. It is also hoping to sell to Vietnam Airlines its long-haul A340 aircraft.
Viet Nam is looking to open up its skies to foreign airlines by 2005, with the national flag carrier Vietnam Airlines planning services to destinations in Europe and the US. — VNS/Dow Jones
