11-Feb-2010 8:33 AM

AirAsia, VietJet Air form new LCC in Vietnam

Direct News Source

10-Feb-2010 AirAsia is proud to announce its acquisition of a 30% equity stake in VietJet Aviation Joint Stock Company (VietJet Air) to establish a Vietnam-based joint venture low-cost airline which will carry the name VietJet AirAsia.

The Ministry of Transportation of Vietnam approved the share acquisition on February 9 (Tuesday).

VietJet AirAsia will be operating both domestic and international flights. It is currently finalizing details regarding routes, frequencies and launch of flights.

The formation of VietJet AirAsia makes Vietnam AirAsia's fourth country base, following Malaysia, Thailand and Indonesia.

AirAsia, Asia's leading and largest low-cost airline, joined the venture to expand its reach in Vietnam and open the country as another gateway in the ASEAN region. The joint venture strengthens AirAsia's position as THE ASEAN airline, expanding operations in the region, increasing intra-regional connectivity, and championing the ASEAN region as a tourism hub.

"The birth of VietJet AirAsia contributes 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," VietJet said.

VietJet AirAsia will be tapping the expertise of both AirAsia and VietJet Air for the successful operation and marketing of low-cost flights.

"The joint venture is a well-balanced combination of the management system, technical expertise, long-term experience in the airline industry, crew and international brand of AirAsia, and the financial strength, as well as Vietnamese market insights of VietJet Air," VietJet Air added.

AirAsia has informed Bursa Malaysia of its latest initiative.