Business
Air Asia to establish joint venture airline in Vietnam
  • | dtinews.vn | February 11, 2010 09:04 AM

AirAsia Bhd through its fully owned subsidiary, AA International Ltd, is set to establish a joint venture airline in Vietnam, the Malaysian news agency Bernama reported on February 10.

The venture will see the Malaysian and Vietnamese parties establishing a low cost airline in Vietnam based on the successful AirAsia business model.

The main Vietnamese party will be SOVICO Holdings, an established corporation with interests in banking and finance, real estate, plantation and power plants.

In a filing to Bursa Malaysia today, AirAsia said the venture would enhance the company's ASEAN regional expansion by providing AirAsia with additional routes and destinations.

"Vietnam will be a gateway which connects the travel markets of Asean with mainland China and potentially the regions of South Asia, North and East Asia including possibly Japan, Korea and Taiwan," it stated.

Subject to regulatory approvals, the joint-venture is expected to commence operations either in April or June this year. --