Overview - Pacific Airlines

Based in Ho Chi Minh City, Vietnam's second largest carrier, Pacific Airlines, currently operates as a legacy carrier. The airline has announced it will begin operations as the countrys first LCC on 15 Feb-07, aiming to capitalise on Vietnam's growing tourism sector. It has been suggested that the transition to an LCC pre-empts rising international competition from foreign budget airlines.

As an LCC, Pacific Airlines will start with flights between Hanoi, Danang and Ho Chi Minh City, as well as two routes from the southern business capital to Taipei and Kaohsiung in Taiwan. In its new low cost formula, Pacific will rely on e-tickets rather than paper ones and will not include meals or entertainment.

Currently operating a single A320-200 and four B737-400s, Pacific Airlines plans to lease at least five more aircraft over the next two years for its domestic and international passenger service expansion. The airlines Managing Director, Luong Hoai Nam, has stated that the airline will lease an additional B737-400 in mid-2007 and an additional four in 2008 on seven year leases, adding to its current fleet.

Nam has said the airline will progressively operate low-cost flights to additional overseas destinations. "Our strategic markets are those within three hours of flying from HCMC, as these markets account for 60% of the international travellers."

Another company official was quoted in the English daily paper Vietnam News as saying the company plans to carry 8 million passengers annually.

But the key to Pacific's successful transition will be the introduction of a strategic investor with low cost operating experience. News on this front should be forthcoming in 2007.

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