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AirAsia To Establish Joint Venture Airline In Vietnam

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AirAsia plans low-cost airline in Vietnam

 

KUALA LUMPUR: AirAsia Bhd will today sign a letter of intent with Shipbuilding Industry Group with a view to establishing a joint venture low-cost airline in Vietnam.

AirAsia, in a filing with Bursa Malaysia yesterday, said the proposed partnership would focus on securing the licence to operate a new Vietnamese airline that would serve domestic, regional and international routes.

 

“The new airline will be built on the successful low-cost model pioneered by AirAsia in this region,” it said.

 

The statement said the airline would carry the name VINA AIRASIA.

 

The new airline would serve domestic, regional and international routes, and eventually build two distinct divisions to facilitate short- and long-haul aviation, AirAsia said.

 

Vinashin will assist the JV company in securing grant of governmental or regulatory approvals, concessions, permission, licences, certificates and any other approvals to facilitate operations of the new airline.

 

 

http://biz.thestar.com.my/news/story.asp?f...mp;sec=business

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Excellent move, as a 'big market' and Vietnamese have more and more money to spend...same reason for QF to enter the market via Pacific Airlines...

 

Next one for AK will be China ? :huh:

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Excellent move, as a 'big market' and Vietnamese have more and more money to spend...same reason for QF to enter the market via Pacific Airlines...

 

Next one for AK will be China ? :huh:

 

What about Hong Kong AirAsia? I thought they are proceeding to make HK a hub, and a even a thought to build an LCCT. Will HK be a good LCC hub? I thought Macau would be a better LCCT hub though.

Edited by Azri M.

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this was confirmed by tony yesterday, stating that they would start operations in 2008, with 2 initial aircrafts.

 

My insider tells me they can start flying earliest in Oct this year, but AK/DCA not ready.

 

+++

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AirAsia inks pact to set up low-cost airline in Vietnam

 

KUALA LUMPUR, Fri.: Malaysian low-cost airline AirAsia today signed a deal with Vietnam’s state-owned corporation, Shipbuilding Industry Group (Vinashin), to establish a new frills-free carrier to be known as Vina AirAsia in Vietnam, expected to be operational in July next year.

 

The letter of intent for the joint venture with the initial investment of US$30 million was signed by AirAsia group chief executive officer (CEO) Datuk Tony Fernandes and Vinashin’s group chairman and CEO, Pham Thanh Binh.

 

The signing was witnessed by Vietnamese Prime Minister Nguyen Tan Dung, who is here to join in Malaysia’s 50th independence celebrations.

 

“With 84 million people in Vietnam and the fact that the country is close to China which has a population of more than a billion, the potential is huge,” Fernandes told reporters later.

 

He said AirAsia, which is Southeast Asia’s largest budget airline, will have a 30 per cent stake in the joint venture against Vinashin’s 70 per cent.

 

Fernandes said AirAsia had to settle for the 30 per cent amount as Vietnamese regulations only allowed single foreign ownerships of not more that 30 per cent.

 

He said Vina AirAsia, which will be the third affiliate airlines of AirAsia in the region after Thai AirAsia and AirAsia Indonesia, will have a fleet of nine aircraft over the next two years.

 

Vina AirAsia was still in the process of securing governmental and regulatory approvals to facilitate its operations, he said.

 

Fernandes further said that the new carrier will have a blue logo instead of the more familiar red.

 

“It’s the Vinashin group’s corporate colour. It’ll be the first time that we’ll be having a blue logo,” he said.

 

Vinashin is the largest shipbuilding company in Vietnam with more than 200 subsidiaries and 10 joint venture companies. Besides shipbuilding, shipping, heavy industries and construction, it has been expanding its operations into other areas such as investment, financing and property development.

 

http://www.nst.com.my/Current_News/NST/Fri...icle/index_html

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WTF??!! :rofl: :rofl: :rofl:

hehe..at least cover off the tail section laa.. :pardon:

Edited by Nick R.

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....So VN market segments will be strong effected and devided by those low-cost Airlines.

 

There are Tiger Airways ( SGN-SIN-SGN ), Bangkok Airways ( SGN-BKK-SGN) and Jetstar ( SGN-SIN-SYD-SIN-SGN) are those low-cost airlines operate in SGN; and Airasean operates for HAN-KUL-HAN .

 

Besides, there are other still considered as rather low -cost airlines operated at SGN for common passengers such as Uni Air from SGN-KHH-SGN and Manderine- RMQ-SGN-RMQ.

 

Then Expectedly, there will come more and more low-cost airlines to Vietnam. And then there will be more choices for passengers, investors and bussiness men are interested to visit , to invest and to do bussiness in VN

 

Cheer :clapping:

 

Ngoc Mai

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....So VN market segments will be strong effected and devided by those low-cost Airlines.

 

There are Tiger Airways ( SGN-SIN-SGN ), Bangkok Airways ( SGN-BKK-SGN) and Jetstar ( SGN-SIN-SYD-SIN-SGN) are those low-cost airlines operate in SGN; and Airasean operates for HAN-KUL-HAN .

 

Wouldn't call PG particularly LCC :pardon:

Have seen fares between BKK-SGN-BKK which are double those of AF ;)

TR and 3K have, indeed, excellent fares ex SIN...

 

 

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Wow...seems like Airasia will soon rule the Asia skies..... :drinks:

 

Unless they cannibalise each other ... 7.gif

 

+++

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I heard problem started when there was a tussle for shareholding between VN and MY partners.

 

+++

 

October 24, 2007 14:20 PM

 

AirAsia's Entry Into Vietnam Hit A Snag

 

By D.Arul Rajoo

 

BANGKOK, Oct 24 (Bernama) -- Malaysian- based budget airline AirAsia's move to penetrate the lucrative Vietnamese domestic market under a joint venture with Vinashin, the country's largest shipbuilder, has hit a snag with reports that the government has refused to grant a licence.

 

The report by VietNamNet Bridge did not give details of the refusal but said domestic airlines, including Vietnam Airlines and Pacific Airlines, could have asked the government not to license Vina AirAsia.

 

It quoted Vietnam Airlines' chairman and director-general Nguyen Sy Hung as telling a press conference that the national air carrier protested the joint venture project because Vietnam should not be so easy on issues relating to commercial freedom.

 

"It is worthy to note that AirAsia once intended to make investment in Pacific Airlines, but the two sides could not reach an agreement," VietNamNet Bridge said.

 

It also said that Australia's Qantas demanded that Vietnam should not license any new airline for three years after the carrier made a US$50 million investment to acquire a 30 percent stake in Pacific Airlines in April this year.

 

VietNamNet Bridge said the airline's chief executive officer Geoff Dixon had told Deputy Prime Minister Nguyen Sinh Hung that Qantas needed more time to restructure Pacific Airlines.

 

AirAsia's chief executive officer Datuk Tony Fernandes and Vinashin Group's chairman and chief executive officer Pham Thanh Binh signed a letter of intent for the establishment of Vina AirAsia in Kuala Lumpur last month.

 

According to their plan, the new airline will initially have a fleet of nine aircraft with the shipbuilder holding a 70 percent stake and AirAsia the remaining 30 percent.

 

AirAsia currently flies to Hanoi from Kuala Lumpur while its Thai subsidiary serves the Bangkok-Hanoi route.

 

The VietNamNet Bridge report also said that the Civil Aviation Administration of Vietnam sent a circular to the Transport Ministry, proposing that Vietnam prioritises licensing domestic-owned airlines while not allowing foreign invested airlines to be set up at this moment.

 

The report also highlighted the US$500 million losses suffered by Malaysia Airlines in 2005 following the entry of AirAsia, which resulted in the restructuring and cutting of 23 international routes.

 

-- BERNAMA

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It also said that Australia's Qantas demanded that Vietnam should not license any new airline for three years after the carrier made a US$50 million investment to acquire a 30 percent stake in Pacific Airlines in April this year.

 

Is it me or does anyone realised that Qantas always barking loudly at other competitions?

* When SQ tries to enter US-Australia markets they were strongly against it and do anything it can to release press statements and pressure the governments

* Previously, there's even rumors that Qantas wanted to deny SQ A380 entries into Australia before they get their own

* When Tiger decided to come here, their subsidiaries Jetstar stated that Tiger will never make money here. Jetstar management been talking "badly" about Tiger, while Tiger choose to keep their claws hidden.

* They goes against Emirates as well with their statements war between EK and QF a while ago

Why can't they just shut up and mind their own business. Such a kiddish way to do business. If they have time to engage in statement war, they should have time to fix the bleeding Jetstar Asia.

 

Before going waaaaaaayyyyyyy off topic, I just wanna say, it's a shame that Air Asia don't get permission to do so. Wonder if they have plans to set up in other countries as well.

Edited by Ivan L.

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Sorry for being off topic but today we received info from TF that AXM/AK is given Malaysian Goverment approval to fly to Singapore.There will be 2 flights a day from all hubs to Singapore daily and not just from KUL and schedule operations to Singapore will start as early as this December.He said that our PM phoned him the goodnews after todays cabinet meeting.Stay tune for further info.

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