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Strategies & Market Trends : Vietnam-the next Asian Tiger?

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From: Mannie11/29/2006 3:07:57 PM
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Last Updated: Wednesday, November 29, 2006 11:57:47 Vietnam (GMT+07)

US aircraft firm to launch air-taxi service in Vietnam

Salom Saphyr, head Cessna representative said since Vietnam’s accession to the World Trade Organization (WTO) more investors have shown keen interest in domestic air transport services.
He said Cessna had proposed to set up a joint venture with VNA subsidiary – Vietnam Air Services Company (Vasco) to provide air-taxi services, with the US firm responsible for supplying airplanes, training pilots and maintenance services.

Cessna conducted market research in Vietnam and found the Vietnamese public, heads of state and businesspeople had great command for the service, Saphyr added.

In addition, he said, each year there are about 100 cases in which patients had to hire private airplanes to fly overseas for treatment or emergency aid, with some trips costing as much as US$15,000 each.

Regarding fare for the air-taxi service, he said the Hanoi-Ho Chi Minh City route would cost some $300 per head to travel business class, and about $4,000 for the whole chartered aircraft.

As for economy class, the fares would be much cheaper, he said.

Saphyr said the airplanes they intended to bring into Vietnam could take off and land in all terrain, from Hanoi’s West Lake to northern mountainous Sapa, and even beaches and streets.

Cessna was currently still seeking permission to launch its air-taxi service in Vietnam, Saphyr said, adding, “If everything goes smoothly, flights could be launched within the next six months.”

In the initial phase, Cessna intends to exploit three airplanes, including a luxurious Jet and two medium-rated Caravans with a capacity of 12-16 passengers.
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