Vietnam Airlines is stepping up its preparations to launch services to the USA, after an historic air services agreement was signed between the US and Vietnamese governments. In another deal, Vietnam has signed a multilateral accord with Cambodia, Laos and Myanmar.

The USA-Vietnam agreement was signed early in December, allowing airlines to operate passenger and cargo flights between the two countries for the first time since the end of their war in 1975. While there are some restrictions on services, both countries have agreed to meet within four years to consider an expansion of the agreement. The US side says it eventually intends to seek a "fully liberalised open-skies agreement".

US airlines have not said whether they will seek rights to operate their own aircraft to Vietnam now that a full bilateral agreement has been signed. Vietnam Airlines has said it plans to launch flights to San Francisco early in 2005, followed by services to Los Angeles. It is also looking at serving Vancouver, after the signing of an air services agreement between Canada and Vietnam in July.

While the USA and Vietnam ratified their bilateral deal, the South-East Asian sub-region comprising Cambodia, Laos, Myanmar and Vietnam is set for an increase in air services after the four countries agreed to replace bilateral air pacts with a multilateral accord.

The highly liberal multilateral agreement, which some are describing as an "open skies" pact, provides for unlimited capacity rights between the countries, as well as unrestricted rights beyond their territories provided approval for services is secured from states that are not signatories.

The agreement formalises a liberalisation pledge made in 1998, in which the civil aviation heads of the four countries agreed to have an open air services regime and strengthen co-operation. "This multilateral agreement pushes that [old agreement] to a new level," says a senior official with the Civil Aviation Administration of Vietnam, who confirms that the intention is to boost air services between the four countries.

Vietnam Airlines is embarking on an ambitious fleet expansion, including the acquisition of four Boeing 777-200ERs.

Source: Airline Business