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AirAsia, VietJet Air form new LCC in Vietnam

11-Feb-2010 8:33 AM

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]