Vietnam Airlines to launch LCC?
Vietnam appears to be laying the groundwork for the development
of an LCC unit of Vietnam Airlines, possibly involving a third party investor.
Vietnam Airlines has received Prime Ministerial approval to establish a partly
private company by reorganising subsidiary, Vietnam Air Service Co (VASCO).
Further details are not yet available, but a response is likely to counter LCC
competition from the Qantas-invested Pacific Airlines (to be brought under the
Jetstar brand in future) and the planned LCC JV between AirAsia and local shipbuilder,
Vinashin. [361 words]