AirAsia Group moves forward with Vietnam JV airline

AirAsia Group still plans to establish a joint-venture LCC in Vietnam after signing a MOU with Vietnamese companies Thien Minh Travel Joint Stock Company and Hai Au Aviation Joint Stock Company.

The fleet will mainly consist of A320s and A321s, flying to underserved routes which connect to Hanoi and Ho Chi Minh City. Flights will also be launched to Southeast Asia, China, South Korea and Japan from Ho Chi Minh, Hanoi and Danang.

AirAsia is already the largest foreign airline group in Vietnam by capacity, and Vietnam is one of the last remaining countries with a large population that the Group is not in, according to Group chief executive Tony Fernandes.

AirAsia is limited to a 30% stake in the new venture, however pending ownership laws in the Southeast Asian country may allow the Group to increase its stake to 49%.

No word yet on the launch date.