|Vietnamese Deputy Prime Minister Nguyen Xuan Phuc cuts the rippon to launch the joint venture in Bangkok. — VNS Photo
BANGKOK (VNS)— The low-cost carrier VietJetAir has agreed a joint venture with the Thai airline Kan Air, as part of its long-term campaign to penetrate the global aviation market.
A memorandum of understanding that was signed between both parties in Bangkok yesterday was witnessed by Vietnamese Deputy Prime Minister Nguyen Xuan Phuc.
VietJetAir holds a 49 per cent share in the venture – Thai VietJetAir – with the remainder owned by the Thai commuter airline Kan Air, a representative from VietJetAir told Viet Nam News yesterday.
She added that Thai VietJetAir was expecting to take to the skies early next year, starting with two or three A320 jets targeting domestic routes within Thailand while fights to international destinations would be prioritised.
Founded in late 2011, VietJetAir currently boasts a network of 11 domestic routes as well as two international ones that link Ha Noi and HCM City with Bangkok.
Despite Viet Nam's sluggish economic growth this year, Vietnamese tourist arrivals to Thailand are on track to pass the number of arrivals in 2012. More than 618,000 Vietnamese visited Thailand last year.
The first five months of 2013 saw Thailand receiving 260,621 Vietnamese visitors, a rise of roughly 11 per cent over the corresponding period in 2012, according to a recent report from Thailand's Tourism.
Thailand is a popular holiday destination for Vietnamese tourists due to the country's proximity to Viet Nam, its value for money, its beauty and its large range of tourist attractions.
Apart from flights, overland travel has also becoming a popular option because of the number of main roads from Viet Nam to Laos that end in Thailand — VNS