New UAL Flights to
Dec. 9 (Bloomberg) --
So this morning United Airlines will inaugurate passenger service from
The daily flight, which will operate with a 347-seat 747- 400, stopping in Hong Kong, will land at Ho Chi Minh City, formerly known as Saigon and from where Pan Am made the last U.S. commercial flight.
UAL Corp., the parent of United Airlines and currently operating under bankruptcy protection, said the number of air passengers between the two countries totaled 300,000 last year and has been growing at 10 percent to 12 percent annually since 1997.
Those numbers are quite small, at least in the environment that United is used to operating. In 2003, for example, the airline carried 1.6 million passengers between its
Mark Schwab, a United vice president, told Bloomberg News on Nov. 16 that ``we are going to see continued double-digit growth between the
Under the five-year air service agreement between the two countries, state-owned Vietnam Airlines intends to begin flights to the
Vietnam Airlines said yesterday that it had signed a contract, estimated to be worth $720 million, to buy 10 Airbus 321 aircraft, to be delivered between 2006 and 2009. The carrier flies to about 25 overseas destinations and is talking with Boeing Co. about buying four next-generation 7E7 Dreamliners starting in 2008.
Vietnamese consular officials told the
Until 1994 when the
Yet signs of the war remain visible throughout the country, with
Who would have dreamed in the early 1970s that the triumphant Communist government of
United announced last week it will lay off 575 bag handlers and customer service agents as it flies fewer planes to reduce costs. The airline, which employs 61,800, said it's trying to cut $2 billion of costs through pay cuts, termination of pension plans and operational changes.
A week earlier, the financially strapped airline won a temporary court order blocking a group of creditors from repossessing 14 of its Boeing 767 and 737 aircraft. The issue may be resolved in bankruptcy court.
United faces a treacherous road to recovery, as low-cost airlines continuously erode the pricing of passenger tickets throughout the
The most difficult aspect of recovery may be the one facing United's employees, who have had to give up substantial pay and benefits in an unsuccessful attempt to restore profitability and undoubtedly will have to give up more. United has asked the bankruptcy court to allow it to break labor contracts with its six unions if it can't reach new concessionary agreements by mid- January.
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Doron Levin in