AirAsia to launch New Budget Airline in Vietnam

AirAsia has signed a Letter of Intent with the Vietnam Shipbuilding Industry Group (VINASHIN), one of the largest state owned corporations in Vietnam with a legal capital of the Joint-Venture Company estimated at US$30 million.

The venture will see both parties establishing a low-cost airline in Vietnam based on AirAsia’s successful business model. The intended business for the venture will include securing the license to operate a new Vietnamese airline which will serve; domestic, regional and international routes.

Dato’ Tony Fernandes, Group Chief Executive Officer of AirAsia Berhad said, “We are delighted to affiliate ourselves with VINASHIN as this scope delivers the initial momentum for both parties to begin our growth together. The growth potential in Vietnam’s air travel market is significant and we are very excited to be working with a colossal corporation in Vietnam to develop this opportunity. We are very confident that both parties will enjoy not only a productive and profitable outcome together but also the exchange of fresher ideas, skills and technologies.”

“We will continue to offer low fares to benefit our passengers and our people thus we are optimistic in boosting tourism economy and drive inbound passenger traffic for both countries as well. With this new partnership, our objective is to create a new market and develop the tourism industry in Vietnam. We see Vietnam as a potential tourist hub and a great example is Hanoi, the oldest capital city in Southeast Asia which has emerged as a fascinating and unconventional tourist destination over the years. Its charming city which is unique in its own beauty, its tree-lined boulevards and lakeside pagodas makes it a hit amongst tourist,” concluded Dato’ Tony.

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