Vietnam Airlines, the state-owned airline, is the major carrier in Vietnam for domestic flights.  A second domestic airline, Pacific Airlines, which is owned by the Vietnamese government’s State Capital Investment Corporation (SCIC), Saigon Tourist Corporation and Qantas Airways Limited (Australia’s national airline)., also offers flights between Hanoi, HCMC, Nha Trang, Hue and Danang. 

Fares for domestic flights are fixed and determined by distance, although there are some discount fares for advance purchase (with restrictions), late night flights.  Vietnam Airlines and Pacific Airlines both offer similar levels of quality and safety, with Pacific Airlines offering slightly cheaper fares.

Vietnam Airlines:

Beginning with a fleet of only 5 aircraft in 1956, Vietnam Airlines has been through some dramatic changes to become what it is today. With every change, Vietnam Airlines has developed, expanded and improved service to become an airline of international standard.

Officially named Vietnam Airlines in 1993, Vietnam Airlines Corporation has functioned business cover the following areas: to engage in trade, services, airline passenger transport and cargo transport domestically and abroad in line with the State’s Civil Aviation development plans; to make plans for development, investment, construction, securing funds, leasing and buying airplanes, maintaining equipment, exporting and importing materials, equipment, spare parts, and raw materials needed for the business activities of Vietnam Airlines, to cooperate and form joint ventures with organizations in the country and abroad in accordance with State laws and policies; fulfilling business tasks in accordance with the law; to obtain and effectively use, save and develop the State's funds including capital to invest in other companies; to receive and effectively use natural resources, land, trading rights, and others resources entrusted by the State to do business and perform other duties; to organize and manage the application of new technology and techniques and to train and support the continued development of Vietnam Airlines staff.

Onward the future, Vietnam Airlines will become a strong economic group that aids in the task of industrialization and modernization and contributes to security and national defense. With a base in air transportation, Vietnam Airlines will diversify its branches and trades, modernize quickly, adopt new technique and improve itself to become a modern and prestigious airline that embodies Vietnam’s national identity. It will become a leader in the region in terms of high-quality services and business efficacy.

Currently Vietnam Airlines operates and code shared co-operate to 38 destinations around the world, in Europe, Asia, Australia and the Middle East. Domestically Vietnam Airlines flies to 18 destinations.

To make flying Vietnam Airlines even more convenient for passengers, Vietnam Airlines has entered into partnerships with other international airlines around the world, signing co-operative agreements on such matters as joint service, revenue pooling, code-sharing and special prorate agreement.

Up to date, Vietnam Airlines has signed 89 Interline Agreements with international airlines and 10 Codeshare Agreements with major carriers including Cathay Pacific, Korean Air, Singapore Airlines,China Airlines, China Southern Airlines, Japan Airlines, Philippine Airlines, Malaysia Airlines, Lao Airlines and American Airlines.

(source: from Vietnam Airlines)

Pacific Airlines:

Pacific Airlines was founded in 1991 as Vietnam’s second largest scheduled airline. Headquartered at Tan Son Nhat International Airport in Ho Chi Minh City, the primary focus is on domestic and regional passenger operations. Pacific Airlines also provide domestic and international charter flights for tour companies, corporations and international organizations upon request.

In February 2007, Pacific Airlines announced its transition from a traditional airline to a low-cost airline, becoming the first Vietnamese carrier to offer low air fares by eliminating unnecessary costs. And passengers only pay the nett cost of air travel, minus extra service fees.

(source: from Pacific Airlines)