AirAsia has confirmed its intention to set up a joint-venture low-cost carrier in Vietnam by signing a memorandum of cooperation with a Vietnamese partner.
AirAsia group CEO Tony Fernandes said the low cost carrier is “incredibly bullish about serving one of the most dynamic, fastest-growing economies in Asia”.
“AirAsia is an Asean airline,” said Fernandes. “And in Asean, Vietnam is one of the last remaining countries with a large population we’re not in.”
The cooperation agreement was signed with businessman Tran Trong Kien, in his capacity as CEO of Thien Minh Travel Joint Stock Co and general director of Hai Au Aviation Joint Stock Co.
Vietnam’s laws allow up to 30% foreign ownership in airlines.