Malaysian low-cost carrier AirAsia and Việt Nam’s Thiên Minh Group on Thursday signed a memorandum of understanding (MoU) on launching a new low-cost airline in Việt Nam.

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AirAsia to launch low-cost airline in VN

December 07, 2018 - 19:00

Malaysian low-cost carrier AirAsia and Việt Nam’s Thiên Minh Group on Thursday signed a memorandum of understanding (MoU) on launching a new low-cost airline in Việt Nam.

Representatives of AirAsia and Thiên Minh Group sign the MoU. — Photo ndh.vn
Viet Nam News

HÀ NỘI — Malaysian low-cost carrier AirAsia and Việt Nam’s Thiên Minh Group on Thursday signed a memorandum of understanding (MoU) to launch a new low-cost airline in Việt Nam.

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

According to Thiên Minh Group’s CEO Trần Trọng Kiên, the fleet will mainly consist of Airbus A320s and A321s, both short- to medium-range, narrow-body aircraft. 

AirAsia will own 30 per cent 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 per cent.

AirAsia expects the joints venture to focus on underserved routes connecting key cities including Hà Nội and HCM City, while also flying to Southeast Asia, China, the Republic of Korea and Japan from HCM City, Hà Nội and Đà Nẵng. 

"We expect to enhance our contribution to Việt Nam’s aviation and increase locals in one of the most promising markets in the region," AirAsia CEO Tony Fernandes said on the news website Nikkei. — VNS

 

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