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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.

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