Chuck Kuhn's Asia in Photos: AirAsia low cost airline/Vietnam

Thursday, February 11, 2010

AirAsia low cost airline/Vietnam

AirAsia, a major low-cost airline in Asia, said it has purchased a 30 percent stake in VietJet Aviation of Vietnam to establish a budget carrier based in the country.

AirAsia aircraft at Noi Bai International Airport in Hanoi (Photo: VNE)

AirAsia’s Vietnam representative office sent out a statement Thursday saying that the new carrier will be called VietJet AirAsia.

AirAsia said in a statement late Wednesday from Kuala Lumpur that the Ministry of Transportation of Vietnam approved the share acquisition on Tuesday, February 9. It did not reveal how much it paid for the acquisition.

The new carrier will be operating both domestic and international flights, AirAsia said. It is currently finalizing details regarding routes, frequencies and launch of flights.

The formation of the new airline makes Vietnam AirAsia’s fourth country base, following Malaysia, Thailand and Indonesia.

AirAsia said it joined the venture to expand its reach in Vietnam and open the country as another gateway in the ASEAN region.

It added the joint venture “will be tapping be tapping the expertise of both AirAsia and VietJet Air for the successful operation and marketing of low-cost flights.”

Subject to regulatory approval, the venture is expected to start operations either in April or June this year.

VietJet Air was licensed to operate in December 2007 as a partnership of SOVICO Holdings (an established corporation with interests in banking and finance, real estate, plantation and power plants), T&C Group and Ho Chi Minh City Housing Development Bank, or HDBank.

However, VietJet Air has not launched its flights due to fuel price fluctuations and the global economic downturn that began late 2008.

Vietnam has so far approved three private airlines namely VietJet Air, Indochina Airlines and Mekong Aviation. Indochina Airlines stopped flights in November last year due to losses. Mekong Aviation had plans to start operations this year on domestic routes but no developments have been seen so far.

Meanwhile, there are no signs of when the national carrier – Vietnam Airlines – would launch low-cost services.

VietNamNet/SGGP

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They say "

“I can’t say what made me fall in love with Vietnam - that a woman’s voice can drug you; that everything is so intense. The colors, the taste, even the rain. Nothing like the filthy rain in London. They say whatever you’re looking for, you will find here. They say you come to Vietnam and you understand a lot in a few minutes, but the rest has got to be lived. The smell: that’s the first thing that hits you, promising everything in exchange for your soul. And the heat. Your shirt is straightaway a rag. You can hardly remember your name, or what you came to escape from. But at night, there’s a breeze. The river is beautiful. You could be forgiven for thinking there was no war; that the gunshots were fireworks; that only pleasure matters. A pipe of opium, or the touch of a girl who might tell you she loves you. And then, something happens, as you knew it would. And nothing can ever be the same again.”
― Graham Greene, The Quiet American

Tips on Travel to Vietnam

It's always warm in Southeast Asia apart from high mountains, so leave the heavy clothing at home. Cotton and breathable fabrics are always better than synthetics -- although cotton does wrinkle a lot when traveling! December through April is roughly the dry season in that region, although it can still rain a little. December is a good time to go in terms of temperature -- cooler than in the humid summertime. Either way, wearing more clothing (shirt sleeves and long pants) is always more respectful towards the Asian culture, especially when visiting temples and rural areas.