Friday, August 31, 2007

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.