CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
AirAsia abandons plan to set up low-cost carrier in Vietnam
Ngoc Mai 13:24, 2019/04/18
The company, nonetheless, remains interested in operating a low-cost airline in Vietnam due to its favorable geographical location, expanding aviation market and overall growth potential.
AirAsia, the largest low-cost carrier in Southeast Asia, informed it has terminated an agreement to launch a domestic airline in Vietnam with local partners, according to the airline’s filing with Bursa Malaysia. 
 
Illustrative photo.
Illustrative photo.
Following the announcement, AirAsia Gumin Company and Hai Au Aviation have amicably agreed to terminate and release each other from all obligations under the transaction agreements in relation to the proposed joint venture in Vietnam, effective April 17, 2019.

"The company, nonetheless, remains interested in operating a low-cost airline in Vietnam due to its favorable geographical location, expanding aviation market and overall growth potential,” it said.

According to AirAsia, the termination of the joint venture is not subject to the approval of its shareholders and is not expected to have any financial impact on the net assets or gearing of the company.

In a tweet early on Thursday, AirAsia Group Chief Executive Tony Fernandes said Vietnam remains “very much in the plan”.

Fernandes added that he is still optimistic of AirAsia being in Vietnam by the end of the year. 
Previously, AirAsia had a plan for the new airline to begin operation in August 2019.

Last December, AirAsia signed an agreement with Thien Minh Group and Hai Au Aviation Company to set up a domestic airline. The signing was conducted on the sidelines of the Vietnam Travel and Tourism Summit 2018 in Hanoi.

“AirAsia is an ASEAN airline and in ASEAN, Vietnam is one of the last remaining countries with a large population we’re not in. Today’s memorandum reaffirms our commitment to making AirAsia in Vietnam happen,” said Fernandes when signing the deal.
​
Vietnam currently has five airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, Vietnam Air Services (VASCO) and the startup carrier Bamboo Airways.
Comments
Other news
18:03, 2025/02/22
Vietnam attracts South Korean tech investment at SEMICON Korea 2025
The event provided a platform for Vietnam to showcase its semiconductor potential and reaffirm its commitment to developing high-tech industries and strengthening international cooperation.
16:46, 2025/02/20
Swedish group plans US$1 billion investment in Binh Dinh recycling plant
By creating a large number of jobs and promoting a green economy, the initiative is important in establishing Vietnam as a global hub for the circular textile sector.
10:52, 2025/02/13
Samsung plans to invest in AI, semiconductors in Vietnam
Vietnam will continue improving its investment environment and driving strategic breakthroughs in order to usher in a new era of economic development.
17:20, 2025/02/07
Vietnam's data center construction costs among the lowest in Asia Pacific
The country has a lot of potential to become one of the most important data markets in the region.
21:05, 2025/02/03
Bright prospects for FDI inflows into Vietnam in 2025
Market size, growth potential, low labor costs, and stable political and social conditions continue to be Vietnam’s selling points in attracting foreign investors.
10:57, 2025/01/30
Foreign companies confirm investment expansion in Vietnam in 2025
Some foreign firms are optimistic about Vietnam's economic prospects in 2025 and plan to expand investment, focusing on sustainability across sectors.