Vietnam Airlines plans to serve three airports in the United States and Canada

Vietnam Airlines plans to serve three airports in the United States and Canada
Vietnam Airlines plans to serve three airports in the United States and Canada

For many years, only United Airlines traveled between the United States and Vietnam, via Hong Kong, but other carriers occasionally provided one-stop service. In late 2021, Vietnam Airlines launched the first regular nonstop service between the two countries, flying from Ho Chi Minh City to San Francisco.

Three years later, Vietnam Airlines has hinted that it intends to add three new North American destinations, among others. As usual, no time frame was given. However, it is likely that at least one of the three will be announced this year.

These destinations are expected

Vietnam Airlines announced on LinkedIn that the following cities are likely to be affected. They are predictable. While no specifics were revealed, they would all operate from Ho Chi Minh City, as San Francisco does, because each market has substantially more point-to-point traffic than Hanoi. Ho Chi Minh City also serves as a hub for Southeast Asian traffic.

All of the markets span a large distance. While Los Angeles would go even farther than San Francisco, Seattle and Vancouver would be far shorter. The catch is that, as the table below indicates, they are significantly smaller markets.

Long routes require heavy premium traffic to function economically. Vietnam, like other markets that rely heavily on diaspora and tourism, has lower averages than others.

For example, the average one-way cost from Ho Chi Minh City to Vancouver on all flights is $830 (including a fuel surcharge but excluding taxes), which appears reasonable. However, Vancouver-Seoul costs $898, although covering 30% less distance each way, implying a substantially better yield. It also saves a lot of money on travel fees.

The incident did not prevent Vietnam Airlines from commencing flights to San Francisco. The average ticket of $791 is less than in its three suggested markets, but passengers would pay a slight premium for the time-saving nonstop service.

Air Canada raised eyebrows when it announced flights between Vancouver and Bangkok in December 2022. The extremely long route currently receives daily service at times.

While the distance is almost the same as Vancouver-Ho Chi Minh City, the average fare is significantly higher: $991. Air Canada’s apparent success has aided the introduction of Vancouver-Manila in April, while United is investigating routes from San Francisco to Vietnam or Thailand.

Ho Chi Minh City to…Roundtrip point-to-point passengers*CommentsAvg. one-way fare** (fare per nautical mile)
Los Angeles261,000Vietnam’s largest North American market. Previously had United flights via Hong Kong. The US’s largest unserved long-haul market$803 ($0.113)
Seattle64,000Seattle’s second-largest unserved long-haul market after Delhi, which Air India has repeatedly said is coming$799 ($0.124)
Vancouver60,000Vancouver’s second-largest unserved long-haul market after Tehran, which obviously won’t materialize$830 ($0.130)
* 12 months to October 2024** Across all passengers in all cabins on all airlines, including a fuel surcharge, which is kept by the airline but excludes taxes

The world’s 24th longest non-stop route

Ho Chi Minh City-Los Angeles is going to happen sooner or later. Given the market size and the identical pricing to San Francisco, but over a somewhat longer distance, it appears to be a sensible addition for Vietnam Airlines.

It would go 7,099 nautical miles (13,147 kilometers) each way, slightly more than Emirates’ Dubai-Houston Intercontinental flight but significantly less than Philippine Airlines’ Manila-Toronto route. It would become the world’s 24th longest nonstop service, however American’s recently launched Dallas/Fort Worth-Brisbane route would still be longer.

SOURCE

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