SE asia airline deals

Here are some air travel deals in in and around Vietnam to keep an eye on -

VNBusinessNews.com - Domestic and foreign airlines in Vietnam are rushing to offer lower airfares and cut operating costs in a bid to cope with shrinking air travel demand.

Airlines have been subjected to massive losses since the global economic crisis led companies to curb travel and shipping and customers reconsider their travel plans.

The world’s airlines lost US$6 billion in first half of this year and are set to lose at least $9 billion for the entire 2009, according to the International Air Transport Association.

As an attempt to stimulate air travel, national flag carrier Vietnam Airlines early this month launched a 20-day sale promotion for domestic and international tickets. Prices have been lowered by 40 to 70 percent, the biggest ticket sale in the history of the carrier.

The Thanh, a resident in Ho Chi Minh City, was able to book a return air ticket to Thailand next month for only VND2.1 million (US$117.71) (tax included) the same rate offered by budget carrier AirAsia.

More than 100 air tickets were sold within the first morning of the airline’s sale promotion on October 1.

Malaysian flag carrier Malaysia Airlines also halved its return airfares, tax not included, on the route between HCMC and Malaysia’s Kuala Lumpur from $284 (plus tax) to $103 (plus tax) each.

Lower fares are also being found on long-distance flights from Vietnam and the U.S and some European destinations.

U.S.-based Northwest Airlines is offering an economy-class round trip between Ho Chi Minh City and Los Angeles for $721 (plus taxes) while South Korea's flag carrier, Korean Air is selling return air ticket on the same route for $980 (tax included).

Malaysia Airlines is promoting economy-class ticket fares of $800 (tax include) for a return flight to Australia and some European destinations, a $200 discount on the regular fares.

Thailand’s national carrier Thai International Airways is also selling tickets to Australia, South Korea, Japan, the U.S. and New Zealand with prices cheaper by $200 each.

Industry insiders said carriers are looking for ways to cut operating costs in hopes that lower air fares would stimulate air travel demand.

Some have resorted to selling tickets online to avoid paying commission to agents, while others changed menus and food containers to reduce catering expenses and the weight of the aircraft.

Low-cost Irish carrier, Ryan Air, even toyed with charging passengers to use aircraft restrooms.

Industry insiders said the sector is not likely to recover until 2011.