AirAsia to launch low-cost airline

The memorandum was signed by AirAsia Group CEO Tan Sri Tony Fernandes, and Vietnamese businessman Tran Trong Kien — in his capacity as CEO of Thien Minh Travel Joint Stock Company and general director of Hai Au Aviation Joint Stock Company.

The signing, which took place on the sidelines of the Viet Nam Travel and Tourism Summit 2018, was witnessed by Vietnamese Deputy Prime Minister Vu Duc Dam and Vietnamese Deputy Minister of Culture, Sports and Tourism Le Quang Tung.

Under the MoU, the two sides will invest in aircraft to form a fleet for the new airline.

AirAsia CEO Tony Fernandes said said we expect to enhance our contribution to Vietnam’s aviation and increase locals in one of the most promising markets in the region.

According to Thien Minh Group’s CEO Tran Trong Kien, the fleet will mainly consist of Airbus A320s and A321s, both short- to medium-range, narrow-body aircraft.

AirAsia will own 30% of the new venture, the maximum allowed for foreign ownership of an airline under Vietnamese law, though the authority is considering lifting the limit to 49%.

AirAsia operates 141 return flights weekly on 13 routes – including six unique routes – connecting Ha Noi, Ha Noi, Ho Chi Minh City, Da Nang, Nha Trang and Phu Quoc with Kuala Lumpur, Penang and Johor Bharu in Malaysia, Bangkok and Chiang Mai in Thailand and Manila in the Philippines, and has carried 12 million passengers to and from Viet Nam since entering the market in 2005.

 By Vien Nhu