After it signed a memorandum of understanding with its joint venture partners in Vietnam, a date has been set for the debut of Malaysian-based low cost carrier AirAsia’s domestic venture in Vietnam.
In a report on the Bangkok Post, the CEO of AirAsia’s partner in Vietnam Thien Minh Group Tran Trong Kien was quoted saying the new domestic carrier will apply for its aviation license in February. The venture expects to get the necessary regulatory approvals within six months for start of operations in August.
AirAsia’s venture in Vietnam will be the latest addition to the low cost carrier group, which now has affiliates in key ASEAN countries such as Malaysia, Indonesia, Thailand, and the Philippines. In Vietnam, it will compete with the likes of VietJet and Bamboo Airways, which expects to begin before the end of the year.
The airline plans to use five or six Airbus A320/A321 aircraft on domestic flights between Hanoi, Da Nang, and other cities. Expansion plans call for a fleet of 30 jets operating regional flights.
The Malaysian-based AirAsia signed a memorandum of cooperation with the Thien Minh Travel Joint Stock (TMG) and Hai Au Aviation Joint Stock Co (HAA) that would eventually lead to the formation of a new AirAsia subsidiary in Vietnam. AirAsia will own around 30% of the new venture to follow Vietnamese laws limiting foreign company ownership.