AirAsia Bhd through its fully owned subsidiary, AA International Ltd, is set to establish a joint venture airline in Vietnam.
The venture will see the Malaysian and Vietnamese parties establishing a low cost airline in Vietnam based on the successful AirAsia business model.
The main Vietnamese party will be SOVICO Holdings, an established corporation with interests in banking and finance, real estate, plantation and power plants.
In a filing to Bursa Malaysia today, AirAsia said the venture would enhance the company's ASEAN regional expansion by providing AirAsia with additional routes and destinations.
Meanwhile in a later statement today, AirAsia informed that it has acquired 30 per cent equity in Vietjet Aviation Joint Stock Company (Vietjet Air) to establish the low-cost airline which will carry the name Vietjet AirAsia.
Vietjet AirAsia will be operating both domestic and international flights. It is currently finalising details regarding routes, frequencies and launch of flights, AirAsia said.
The Ministry of Transportation of Vietnam approved the share acquisition yesterday, it said.
The formation of Vietjet AirAsia makes Vietnam AirAsia’s fourth country base, following Malaysia, Thailand and Indonesia.
The joint venture will see AirAsia expanding its operations in the region, increasing intra-regional connectivity, and championing the ASEAN region as a tourism hub.
Vietjet AirAsia is expected to contribute to the diversification of the aviation market in Vietnam, providing more options to meet the air travel needs of people in Vietnam and in the region.
POST YOUR COMMENT
City & Country
Phone Number
We will not publish
your email or full address on our website, or give them to a third party.
Tags:
Vietnews is not responsible
for the content of external Internet sites.