Vietnamese partner AirAsia Group Bhd expects the brand new carrier to start operations in August, joining the ranks of low-cost carriers in Southeast Asia as a growing middle class encourages more people to travel by air.
The domestic airline will apply for an air license in February and expects to get the needed regulatory approvals inside six months, said Tran Trong Kien, chief executive of Thien Minh Group, a Hanoi-based resort and seaplane operator and AirAsia partner.
Vietnam is the missing piece of the puzzle for Malaysian tycoon Tan Sri Tony Fernandes’ AirAsia, Southeast Asia’s largest low-cost carrier group, with operations in key markets including Malaysia, Indonesia, Thailand and the Philippines. The recent airline would change into the newest entrant after Bamboo Airways this yr in Vietnam, a market dominated by state-owned Vietnam Airlines JSC and personal low-cost carrier VietJet Aviation Joint Stock Co.
Vietnamese Prime Minister Nguyen Xuan Phuc expressed support for the yet-unnamed enterprise during a gathering with Kien and Fernandes on Dec. 6, in line with Thien Minh Group CEO. The airline plans to deploy 5 or 6 Airbus SE A320 and A321 aircraft on domestic routes between Hanoi, Da Nang and other cities, in addition to on regional routes, and the fleet could expand to 30 planes inside three years, Kien said in an interview on Dec. 7.
Under the agreement signed in March last yr, AirAsia will hold a 30% stake in Hai Au Aviation, while Gumin Co, headed by Kien, will control about 70%, the Vietnamese businessman said. The airline goals to attain a market share of 20% to 30% inside a decade, he said.
Bamboo Airways, owned by FLC Group JSC, plans to start flights on Dec. 29. Thien Minh Group owns Victoria Hotels & Resorts in Vietnam and Laos, in addition to Hai Au Aviation Joint Stock Co, which operates 4 tourist seaplanes from Hanoi’s Noi Bai International Airport. It also owns iVivu.com, a number one online travel agency in Vietnam.
Source : Edge Markets
