The prospect of air links between the USA and Vietnam has strengthened following successful negotiations on a codesharing deal, designed as an interim measure until a full air services agreement is reached.
The memorandum was to have been signed in Hanoi early in September during a visit to Vietnam by US secretary of state Madeleine Albright. The signing was delayed, although airline sources say they expect it to be signed shortly following approval from the Vietnamese Communist Party leadership.
Although far short of an air services agreement, the memorandum is eagerly anticipated by US carriers, as it will allow one carrier from each side to offer joint services, either directly with an airline from the other side or via a "third-country" partner of that airline.
Carriers from the USA and Vietnam cannot operate their own aircraft to the other country as no air services agreement exists. The codeshare deal is designed as a stopgap measure until a fuller accord is secured.
State-owned Vietnam Airlines has been suffering from a decline in business since early 1997 and fears losing passengers to US carriers on regional routes. The carrier admits to holding codeshare talks with an unspecified number of US carriers, confirming only that Delta Air Lines is one.
Observers say a Delta/Vietnam Airlines tie-up is most likely. This would see the Vietnamese carrier adding its code to Delta's flights between the USA and Paris. Delta would add its code to flights operated by Air France and Vietnam Airlines between Paris and Hanoi.
Both Air France and Vietnam Airlines operate their own Paris-Hanoi flights - Air France three times a week and Vietnam Airlines twice a week. The latter operates a Paris-Ho Chi Minh City-Hanoi routing.
Early last year, Vietnam and the USA held their first formal round of air services talks since the countries re-established diplomatic relations in 1995. The talks ended without agreement and no formal discussions have been held since, although Vietnamese CAA officials say the codeshare memorandum has been negotiated by "correspondence" over the past year.
Source: Airline Business
