AirAsia acquired (10-Feb-2010) a 30% equity stake in VietJet Aviation Joint Stock Company (VietJet Air), to establish a Vietnam-based JV LCC, which will carry the name VietJet AirAsia, following an agreement with VietJet owner, SOVICO Holdings. The Ministry of Transportation of Vietnam approved the share acquisition on 09-Feb-2010. VietJet AirAsia will be operating both domestic and international flights, with AirAsia to "provide technical, operational and commercial support on an arms length basis to ensure commercial, operational, branding and service level uniformity throughout AirAsia’s operations". It is currently finalising details regarding routes, frequencies and launch of flights, and is expected to commence operations between Apr-2010 and Jun-2010, subject to relevant approvals. Following the completion of the share transfer, the shareholding structure in the carrier shall be AirAsia with 30%, SOVICO Holdings with 51% and Nguyen Thanh Hung (SOVICO Chairman) with 19%. [more - press release] [more - general announcement][more - Perspective]
AirAsia, VietJet Air form new LCC in Vietnam
You may also be interested in the following articles...
HNA's Avolon group to acquire CIT Commercial Air, creating world’s third largest aircraft lessor
HNA Group’s remarkable spending spree continues, with the announcement that its Avolon subsidiary will acquire CIT Commercial Air, the aircraft leasing arm of CIT Group.
The USD10 billion deal will create the world’s third largest lessor - and they may be more to come yet.
Avolon itself was only recently acquired by HNA Group, with the USD2.7 billion purchase agreement being finalised in Jan-2016, via Bohai Capital Holdings.
Avolon is now the core aircraft leasing brand for the HNA Group. Including assets from Hong Kong Aviation Capital, Bohai Capital and several smaller HNA Group leasing firms, Avolon has a fleet of nearly 250 aircraft and almost 200 more on order.
Malaysia AirAsia: challenges emerge to recent good results but costs, brand awareness are strengths
Short haul LCC group AirAsia faces intensifying competition in its original home market of Malaysia. Malaysia AirAsia (MAA) is no stranger to fierce competition and has the cost structure to fight back, but the price might be a dilution of recent yield and load factor improvements.
MAA has benefitted over the last year from the restructuring of Malaysia Airlines and an improvement in overall market conditions. However, the new Malaysia Airlines is starting to emerge as a tougher competitor, with a new, more aggressive pricing strategy. Meanwhile Lion Group’s Malaysian JV Malindo Air is again accelerating expansion, targeting several of AirAsia’s most lucrative routes.
Over the past two months CAPA has published a comprehensive series of reports analysing the new strategy of the Malaysia Airlines Group, Malindo and AirAsia X. In this report CAPA examines the outlook for Malaysia’s largest airline, MAA.