Etihad Airways to Expand into Vietnamese Market

Etihad Airways has confirmed it will inaugurate flights to Vietnam a matter of weeks after its United Arab Emirates (UAE) rival Emirates Airline resumed its own flights into the country. The carrier will introduce a daily link between Abu Dhabi and Ho Chi Minh City from October 1, 2013, a growth that has been made possible after the signing of a new Air Services Agreement between the UAE and Vietnam in April 2011.

The Socialist Republic of Vietnam has been one of the fastest growing economies in Asia, with Ho Chi Minh City, home to over seven million people, recognised as its commercial capital. Etihad Airways will use a 262-seat Airbus A330-200 on the route from Abu Dhabi configured in a two-class arrangement with 22 Pearl Business Class seats 240 Coral Economy Class seats.

During the early 1990s services between the UAE (Dubai) and Ho Chi Minh City were provided by the then Soviet giant Aeroflot and subsequently its Russian namesake, as well as Vietnam Airlines. Emirates Airline made its debut in Vietnam in October 1995 but closed its Dubai – Ho Chi Minh City route in December 1996, although Vietnam Airlines maintained its services for a further six and a half years, ending flights in June 2003.

Emirates Airline resumed flights between Ho Chi Minh City and Dubai on June 4, 2012 using an A330-200: it has already announced plans to upgrade the route to a Boeing 777-300ER from October 28, 2012. Although Gulf Air did operate some flights to Ho Chi Minh City from Abu Dhabi in December 1993 and January 1994, the new Etihad service will be the first full schedule to Vietnam from the UAE capital.

This will be Etihad Airways’ sixth destination within the Association of Southeast Asian Nations (ASEAN) region, joining Bangkok, Jakarta, Kuala Lumpur, Manila, and Singapore, however the carrier’s network now encompasses 21 ASEAN destinations when you include the growing number of partner airline agreements it has in place.

The new link to Ho Chi Minh City will meet growing demand from Vietnam’s rapidly expanding economy and will support the country’s increasing commercial ties with the United Arab Emirates, and in particular Abu Dhabi. Ho Chi Minh City offers tourists the ideal gateway to explore the wonders of Vietnam, be it the shopping options in the city, the various UNESCO World Heritage Sites of Hoi An, the islands of Halong Bay, the beaches of Nha Trang or the floating markets and restaurants of the Mekong River Delta.

The new flight will also further support joint UAE and Vietnam government ventures in areas of energy, infrastructure, tourism, and civil construction. UAE investment in Vietnam now stands at more than US $3 billion and two-way trade revenue approximately US $1.3 billion.

“We are delighted to announce the introduction of Ho Chi Minh City to the Etihad Airways’ global flight network. Like our home-base of Abu Dhabi, it is a vibrant, culturally rich and expanding city popular with business and leisure travellers,” said James Hogan, President and Chief Executive Officer, Etihad Airways.

“Etihad Airways has a strong South East Asian network and the addition of daily services to Ho Chi Minh City underlines our commitment to this region that continues to experience strong commercial growth across many industries, especially tourism, manufacturing and technology,” he added.

Alongside the passenger demand there will also be significant call for bellyhold capacity within the A330-200 widebodies hold. Vietnamese exports range the full value chain from high-end tablet PCs, smartphones and printers to garments, sportswear and shoes.

This year Etihad Airways has already announced the launch of non-stop flights to Sao Paulo, Washington, DC, Addis Ababa and Ahmedabad. These cities are all part of the airline’s 10-year network growth plan which will see Etihad Airways fly to up to 100 destinations with a fleet of more than 150 aircraft by 2020.

Richard Maslen

Richard Maslen has travelled across the globe to report on developments in the aviation sector as airlines and airports have continued to evolve and…