Air Asia signed a memorandum of understanding on a Vietnamese three way partnership with Thien Minh Travel, a unit of the travel group that Air Asia previously chosen as local partner in April 2017
According to the FlightGlobal website, a joint statement Air Asia The Thien Minh Group confirmed its intentions to launch the carrier but didn’t provide any details on the content of the memorandum or mention the proposed launch date of the three way partnership, fleet composition or route network.
To reveal political support for the three way partnership, Fernandes and TMG Chairman Tran Trong Kien signed the agreement within the presence of Vietnamese Deputy Prime Minister Vu Duc Dam and Deputy Minister of Culture, Sports and Tourism Le Quang Tung throughout the Vietnam Tourism Summit in Hanoi.
“Air Asia “is an ASEAN airline,” says group CEO Tony Fernandes, referring to the Association of Southeast Asian Nations, a regional grouping.
“And in ASEAN, Vietnam is one among the last large-population countries where we should not present. Today’s memorandum reaffirms our commitment to creating Air Asia in Vietnam. Last 12 months after we announced this three way partnership, we were incredibly bullish on Vietnam and we remain incredibly bullish on serving probably the most dynamic, fastest growing economies in Asia.”
Originally announced April 2017. Air Asia– The TMG three way partnership planned to start out flights in April 2018 and expand its fleet to 30 aircraft inside three years.
This plan was to Air Asia take over 30% of shares in existing general aviation company Hai Au Aviationmember TMG, which was to be relaunched as a low-cost carrier, subject to regulatory approval. Another local firm, Gumin Company, was to carry the remaining 70% of Hai Au’s shares, which might have increased the final aviation operator’s capitalization to VND1 trillion ($44 million).
Despite early optimism, the carrier never took off. Still, Fernandes was bullish on Vietnam during an interview with FlightGlobal in September 2018.
“Vietnam is still alive,” he said. “We are sure we will establish ourselves there soon. The most important thing to me is Southeast Asia, and Vietnam is much more important to me than China, let’s be honest.”
He added that a choice could be made soon, but he couldn’t provide further details.
The TMG three way partnership represents Air Asiathird try to break Vietnam. In 2007, it tried to form a three way partnership with state-owned shipbuilder Vinashin but was blocked by Hanoi.
Then, in 2010, it obtained permission to take over 30% of the shares within the then unlaunched carrier. VietJet Air. That agreement expired a 12 months later after the federal government responded significantly negatively and Vietnam Airlines.
This Air Asia/TMG Memorandum appears as one other carrier, Bamboo Airlines is waiting for an air operator certificate. The ambitious carrier, a member of the FLC Group, plans to start out service on Dec. 29 but has missed several expected launch dates. It also says it has strong political support.
