Air NZ announces direct flights to Vietnam as airline competition heats up

Friday 13th November 2015

Air New Zealand, the country's national carrier, will start flying directly to Vietnam from the middle of next year, expanding its Asia-Pacific offering as it faces increased competition on both international and domestic routes.

Flights between Ho Chi Minh City and Auckland will begin in June 2016, the Auckland based airline said in a statement. Direct flights will run three times a week between June and October, with the potential to expand the season in later years, it said.

"Air New Zealand’s new service to Vietnam is significantly more convenient, and quicker than current indirect options," chief executive Chris Luxon said. "It will also provide a direct link for Vietnamese travellers coming to New Zealand and we look forward to welcoming them."

The new route comes as Air New Zealand faces looming competition on its Auckland-Los Angeles route from American Airlines and Qantas and as it faces increasing competition domestically from Qantas's budget brand, Jetstar.

Last week, Air New Zealand said it bought 15 new ATR72-600 aircraft worth a total US$375 million, of which four would be allocated to grow local regional routes in a bid to fend off Jetstar's expansion.

The shares rose 0.6 percent to $2.735, and have gained 10 percent this year, outperforming the S&P/NZX All Index's 3.7 percent gain over the same period.

BusinessDesk.co.nz

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