Vietnam Government supports AirAsia:only has VietJet AirAsia stake, will not operate the carrier

Vietnam Government responded to Vietnam Airlines' requests for the government not to endorse AirAsia's plans to launch a JV airline in the country, stating all civil aviation cooperation with foreign partners requires approval from the Prime Minister (VietNamNet, 17-Mar-201). Vietnam Airlines claimed the JV would allow AirAsia to join VietJet AirAsia's Board of Directors, allowing it to manage the carrier. The carrier also stated the entry of a number of foreign LCCs would adversely affect new local carriers. Civil Aviation Administration of Vietnam (CAAV) has stated that AirAsia only has a share in VietJet AirAsia, and that there are no plans between VietJet AirAsia and AirAsia to launch a new carrier. VietJet Air confirmed the CAAV's comments.