It's The First Between The Two Countries

The United States and Vietnam today concluded the first comprehensive air services agreement between the two countries.  The delegations initialed the agreement after three days of talks in Hanoi.

"This agreement allowing the first direct US-Vietnam air service will help meet current market demand as well as stimulate future growth in tourism and other commercial activity between our two nations," US Secretary of Transportation Norman Y. Mineta said.  "We look forward to future discussions with the Vietnamese government that will further expand air service opportunities in the market."

In March 2000, the two countries agreed to permit a limited amount of code-sharing, which allowed US and Vietnamese airlines to place their designator codes on each other's flights or those of third-country carriers. Today's agreement allows the airlines of both countries to provide US-Vietnam air service with their own aircraft as well as expanded code sharing.

The achievement comes after several years of discussions.  The two sides had first expressed interest in concluding an air transport agreement shortly after the lifting of the US economic embargo on Vietnam in 1994. Negotiations were previously held in 1998 and 2000, as well as in March and June this year.

Under the agreement, two passenger carriers from each country may provide scheduled US-Vietnam service immediately.  A third passenger carrier may begin service starting in the third year.  Each scheduled carrier may operate seven weekly round trip flights between the two countries.  The agreement also permits an unlimited number of scheduled all-cargo carriers to operate with no limits on weekly frequencies.  The agreement also features unlimited rights for cargo charters, and allows carriers of each side to operate up to 52 passenger charter flights per year.

The new agreement will remain in effect for five years.  The two sides agreed to meet within four years to consider a further expansion of air service opportunities, at which time the United States will seek a fully liberalized Open-Skies agreement.

The two sides will implement the agreement's terms on an interim basis pending the completion of formalities to formally enter the agreement into force.

FMI: www.dot.gov