VNBusinessNews – Foreign airlines active in Vietnam have slashed fuel surcharges for their flights to and from Viet Nam to make their services more competitive at a time of declining air travel as a result of the global economic downturn.

Malaysia Airlines has cut fuel surcharges on international flights by as much as 73%. “The reason why we have reduced our fuel surcharges is because of the world’s declining fuel prices and competitive pressures,” said Terence Swampillai, area manager of Malaysia Airlines in Vietnam.

“We have come to a very competitive market now and the need to boost air travel during this period of economic slowdown,” Swampillai told reporters in HCMC on Monday.

Swampillai said the carrier had reduced by up to 54% in the fuel surcharge for its flights to and from ASEAN destinations including in Vietnam. “This fuel surcharge reduction is to ensure that our ticket prices become more competitive. This is good news.”

Malaysia Airlines has halved the fuel surcharge for the flights to and from Vietnam. “Now the fuel surcharge for a return flight between Malaysia and Vietnam is US$66. This means passengers can buy tickets with a lot less money that they used to pay,” Swampillai said.

He clarified passengers were now able to book a return ticket at US$243 including fuel surcharge and taxes for the flight between Vietnam and Kuala Lumpur, or 38% lower for the flight departing from HCMC and 32% from Hanoi than before the fuel surcharge cut.

Malaysia Airlines has lowered fuel surcharges for the flights to Australia, Europe, India and other international destinations. Swampillai explained this move was in line with other airlines in the context of declining oil prices.

Karun Sirarojanakul, general manager of Thai Airways International in Vietnam, said in a statement that the airline’s fuel surcharge had fallen from US$25 to US$14.5 per sector for the flights between Hanoi and HCMC and the Thai capital city of Bangkok.

With the fuel surcharge reduction, Thai Airways now offers a return ticket for the HCMC-Bangkok flight at around US$213 including taxes and surcharges.

Cathay Pacific Airways has announced fuel surcharges of HK$61 (US$7.8) for short-haul services in North and South East Asia including the flights to HCMC, and HK$280 (US$35.9) for long-haul services until March 31, 2009.

The adjustments represent reductions of about 44% from the previous level of HK$108 (US$13.8) for short-haul services and HK$499 (US$64) for long-haul services.

Swampillai of Malaysia Airlines said in addition to lower fuel surcharge the carrier would offer more than one million seats that are 70% lower than the current market fares during the Malaysia Airlines Travel Fair.

Swampillai said the discount tickets would go for sale in Malaysia and in selected ASEAN countries, namely Singapore, Thailand, the Philippines, Indonesia and Vietnam, during the annual fair that takes place from February 10 to 19 this year.

Swampillai said Malaysia Airlines would sell the special fares to the public through the carrier’s website at www.malaysiaairlines.com, travel agents and its counters during the virtual travel fair.

Customers can book such fares at the offices of over 600 participating travel agents in Malaysia and more than 1,500 agents from Singapore, the Philippines, Indonesia, Thailand and Vietnam.

Swampillai said the special ticket would be around US$109 for a return flight between HCMC and Kuala Lumpur, and US$169 for the service between Hanoi and the capital city of Malaysia. “The tickets booked during the fair are even cheaper,” he said, adding that the levels included surcharges and taxes.

Swampillai said the special tickets would also apply to Malaysia Airlines’ flights to the destinations in India, Australia, the United States and Europe. (SGT)