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AirAsia, VietJet to launch budget airline
Malaysia's budget carrier AirAsia has purchased a 30 per cent stake in local VietJet Aviation to establish a Viet Nam-based low-cost airline, according to the company.
AirAsia representative in Viet Nam, Bui Duc Hanh, was quoted by Tuoi Tre Online as saying procedures for the purchase had been completed.
The Ministry of Transport approved the share acquisition on Tuesday.
The new carrier, which will be known as VietJet AirAsia was scheduled to start operation in May 2010 and would operate both domestic and international flights, AirAsia said in a statement on Wednesday.
It is finalising details regarding routes, frequencies and launching of its services.
Diversification
The carrier did not reveal how much was paid for the acquisition. "The birth of VietJet AirAsia contributes to the diversification of the aviation market in Viet Nam, and will provide more options to meet the air travel needs of people in Viet Nam and the region," VietJet said. The establishment of the new carrier makes Viet Nam AirAsia's fourth country base, after Malaysia, Thailand and Indonesia.
AirAsia said the venture would allow it to expand its reach in Viet Nam and open the country as another Southeast Asian gateway, connecting with mainland China, South Asia, North and East Asia including Japan, South Korea and Taiwan. Vietjet Air, the first the first privately-owned Vietnamese airline, was launched in December 2007 with an initial investment capital of VND600 billion (US$37.5 million). Its main shareholders were the Sovico Group, T&C Group and the housing development joint stock commercial bank (HDBank).
Initially, the local budget carrier was scheduled to start operations in late 2008. However, it was deferred due to rising fuel prices and the global economic turmoil.
The carrier had set a goal of becoming the country's leading airline, said VietJet Air director general Nguyen Duc Tam.
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