Air NZ will fly one of its Boeing 767 planes (pictured) on its new services to Vietnam. Photo / NZ Herald
Air NZ will fly one of its Boeing 767 planes (pictured) on its new services to Vietnam. Photo / NZ Herald
Air New Zealand says its fares to Vietnam will be low to help develop the market.
The airline today announced it would fly three times a week to Ho Chi Minh City from next June and says direct flights and the aircraft it will use will allow it to set low prices.
"They'll be competitive no doubt, the way we develop markets is by getting decent prices in," said the airline's chief strategy, networks and alliance officer, Stephen Jones.
Flight Centre says to be competitive with other South East Asia destinations it would expect fares to Vietnam to be in the region of $1000 to $1299.
Jones said seats for the seasonal service which runs from June to October will go on sale early in the New Year and ticket prices would be determined then.
Airlines typically offer some very low fares around the launch of new routes to help promote them.
Air New Zealand will initially use a Boeing 767-300 with 224 seats on the route. Although the five 767s are the airline's oldest longhaul planes, they have been modernised with winglets to make them more fuel efficient and some of the economy seats are the roomiest in the fleet.
"It's a great aircraft for developing markets but ultimately we'd like to see it go into one of our 300-seater 787-type aircraft," said Jones.
The airline also wants to increase frequency on the route.
It's great for New Zealanders who want to have a good time in a fantastic country but I think over time we'll see more tourists from that increasingly prosperous part of the world come to New Zealand.
Flight time to Vietnam will be about 11 hours and the country will be popular with travellers who have travelled to Bali and Thailand. Ho Chi Minh City has a population of 7.5 million people.
Vietnam has not been served by direct flights, is growing in popularity among Kiwi travellers. About 15,000 went there last year and this is expected to grow sharply with Air New Zealand's new services.
Amendments to an air services agreement with New Zealand signed earlier this year allowed for enhanced services.
It is estimated New Zealanders will fill about 85 per cent of seats but Transport Minister Simon Bridges said there was potential to grow the inbound market.
"It's great for New Zealanders who want to have a good time in a fantastic country but I think over time we'll see more tourists from that increasingly prosperous part of the world come to New Zealand."
Tourists canoe under a stone arch in Bai Tu Long Bay on April 19, 2015 near Ha Long City, Vietnam. Air NZ will start flying to Ho Chi Minh City from June next year. Photo / Getty Images
Vietnam had a population of close to 90 million people and there was scope to expand trade and business links.
Trade between Vietnam and New Zealand was worth about $1.35 billion last year. Dairy makes up about half of New Zealand's exports.
Flight Centre general manager of product Sean Berenson said Asia was a real growth area for New Zealand travel.
"South East Asia in particular has long been popular with Kiwis and there would certainly be the demand to expand on the offering in this space."
Much like Thailand or Bali, Vietnam is becoming a go-to holiday spot for New Zealanders.
House of Travel Commercial Director Brent Thomas said with 700 seats per week available over five months, this could amount to around 10,000 Kiwis taking advantage of the new flights to Vietnam.
"Much like Thailand or Bali, Vietnam is becoming a go-to holiday spot for New Zealanders. At the moment, Vietnam seems to be more of an adventure destination. We believe the direct flight to Ho Chi Minh is likely to open up the central Vietnam beaches, to become more of a relaxation destination."
Air New Zealand is expanding its international operations by about 15 per cent in the next year and is scouting another destination, most likely in Asia.
It is about to start new services to Buenos Aires and Houston next month.
