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Friday, October 28, 2011

AirAsia stumbles in Vietnam

  AirAsia stumbles in Vietnam Sim Kok Chwee, Singapore, October 13, 2011

AIRASIA’s plan to gain a foothold in Vietnam by establishing a new low-cost carrier (LCC) came to an abrupt halt after regulatory approval was denied for its proposed joint venture with VietJet Aviation.

The Civil Aviation Administration of Vietnam objected to the use of the AirAsia branding in the joint venture, which would have resulted in a new LCC called VietJet AirAsia.

AirAsia explained in a statement to the Malaysian stock market that the joint venture had been allowed “to lapse with immediate effect”.

AirAsia deputy group CEO Kamarudin Meranun suggested that the airline had not given up its aspirations of tapping Vietnam’s fast-growing market.

“In the proper time and condition, we may re-look the opportunity for a joint venture with VietJet, but it has to be the right time, environment and condition,” he said.

 

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