=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/10/09/s= tate0700EDT0035.DTL ---------------------------------------------------------------------- Thursday, October 9, 2003 (AP) U.S., Vietnam initial aviation agreement opening flights between former foes MARGIE MASON, Associated Press Writer (10-09) 04:00 PDT HANOI, Vietnam (AP) -- Vietnam and the United States initialed a landmark agreement on Thursday, allowing passenger and cargo flights between the two countries for the first time since the end of the Vietnam War. The agreement was initialed in Hanoi by Pham Vu Hien, deputy director of Vietnam's Civil Aviation Administration, and Laura Faux-Gable, deputy director of the U.S. State Department's Office of Aviation Negotiations. "This is the first agreement between our two countries," Faux-Gable said. "It is a really significant step that will bring major benefits not just to the economies of both countries but to many other travelers and businesses in the region." It was unclear when flights would begin, but representatives of some U.S. carriers said service could start as early as next spring. State-owned Vietnam Airlines said it would likely take longer to initiate flights to America, but San Francisco was its first choice of destinations from Ho Chi Minh City, said Pham Ngoc Minh, airline executive vice president. More than 1 million Vietnamese reside in the United States, many of whom fled Vietnam after the communists defeated the U.S.-backed government of South Vietnam in 1975. Many overseas Vietnamese have begun traveling back to their homeland, and Minh said they would become a major passenger target. "The U.S.-Vietnam market is a huge market and this is a very good opportunity," he said. The agreement came with several restrictions, including destination cities, flight frequency and the number of carriers. The biggest sticking point coming into the third round of negotiations involved what third cities U.S. carriers could fly through to pick up passengers before reaching Vietnam. Vietnam was concerned it would not be able to compete with large U.S. carriers if an open skies agreement was reached, Faux-Gable said. In an unusual move, the U.S. negotiators agreed to a restrictive five-ye= ar deal that would not allow U.S. airlines to pick up passengers in Taiwan, South Korea, Japan and France. Hong Kong would be off limits for the first two years. Cargo carriers have the same restrictions, except they are permitted to pick up freight in South Korea. The agreement also only allows two U.S. and two Vietnamese passenger carriers to fly between the countries for the first two years of the agreement, with a third added on each side the next year. Those carriers will be decided through a government selection process. Vietnamese and U.S. carriers also are only permitted to fly into five cities, but they can reach other markets through code-sharing agreements, which allow other airlines that already operate in each country to complete part of those flights. It is the system that's currently used to fly between Vietnam and America. Vietnam's relations with the United States have broadened since a bilateral trade agreement went into effect in December 2001. Limited flights were offered between the United States and former South Vietnam during the war. =20 ---------------------------------------------------------------------- Copyright 2003 AP