AirAsia launches Vietnam LCC
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It signed a Letter of Intent with Vietnam Shipbuilding Industry Group (VINASHIN), one of the largest state-owned corporations in Vietnam, last week.
The venture, worth US$30 million, 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 licence to operate a new Vietnamese airline which will
serve domestic, regional and international routes, a release said.
It said Vinashin will assists in securing governmental or regulatory approvals. AirAsia’s contributions will comprise assisting the joint venture company procure and acquire aircraft at the most competitive price.
Tony Fernandes, Group Chief Executive Officer of AirAsia said “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.” He said with the new partnership, he hopes to see a new market being developed 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,” said Fernandes.
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