KUALA LUMPUR – AirAsia in Vietnam, set to take flight in July next year, will tap on the huge potential of Vietnam’s population base of 84 million and the country’s proximity to China, said group executive officer Dato’ Tony Fernandes.
The Malaysian low cost carrier celebrated the country’s 50th year of independence on August 31 by inking a deal with Vietnam’s state-owned corporation, Shipbuilding Industry Group (Vinashin), to set up the new frills-free carrier.
The new frills-free carrier, to be known as Vina AirAsia in Vietnam, is expected to be operational in July 2008.
Initial investment for the joint venture company is estimated at US$30 million, with Vinashin taking a 70 per cent stake and AirAsia 30 per cent. According to Fernandes, Vietnamese regulations only allow single foreign ownership of not more than 30%.
Vina AirAsia, 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, Fernandes said.
The new carrier will have a blue logo instead of the red synonymous with AirAsia and its staff.
“It’s the Vinashin group’s corporate colour. It’ll be the first time that we’ll be having a blue logo,” said Fernandes
Vinashin is the largest shipbuilding company in Vietnam with more than 200 subsidiaries and 10 joint venture companies. Its diversified businesses include shipbuilding, shipping, heavy industries, construction and investment, financing and property development.
