JavaScript is off. Please enable to view full site.

AirAsia's plan to launch Vietnam carrier fails to take off

Thursday, April 18, 2019, 09:10 GMT+7
AirAsia's plan to launch Vietnam carrier fails to take off
AirAsia planes are seen on the tarmac at Kuala Lumpur International Airport 2 (KLIA2) in Sepang, Malaysia December 13, 2017. Picture taken through glass. Photo: Reuters

Malaysia’s AirAsia Group cancelled plans to enter Vietnam’s crowded aviation market on Wednesday, but said it was still keen on operating a low-cost carrier in the country.

The Malaysian budget airline, in a statement, said it had ended its agreement with Gumin Company Ltd and Hai Au Aviation to set up a low-cost carrier in a pact signed in March 2017.

AirAsia had planned for the venture to start services in Vietnam by August this year.

Vietnam is one of Asia’s fastest growing economies and air travel is booming, with domestic and inbound passenger numbers rising at double-digit rates last year.

AirAsia, which swung into the red in the fourth quarter of 2018 for the first time in more than three years, said it “remains interested in operating a low-cost airline in Vietnam due to its favourable geographical location, expanding aviation market and overall growth potential”.

Following the launch of a fifth Vietnamese airline in January, competition has become intense and is straining the country’s aviation infrastructure.

AirAsia already has offshoots in Indonesia, Thailand, India, Japan and the Philippines.

Reuters

More

Read more

;

Photos

VIDEOS

Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news