airasia-lands-vietnam-joint-venture

AirAsia lands Vietnam joint venture

Four years after first announcing its intentions, MalaysiaÆs AirAsia receives approval for a joint venture in Vietnam.

AirAsia is finally establishing a base in Vietnam through a joint venture with VietJet Air, four years after announcing plans to enter one of Southeast Asia's most talked-about aviation markets.

Under the terms of the agreement, the Malaysian low-cost carrier has taken a 30% stake in Vietnamese upstart VietJet for Vnd180 billion $9.5 million through its wholly owned subsidiary AA International. Sovico Holdings, a diversified Vietnamese conglomerate with finance, power generation and real estate businesses, owns 51% and Sovico's chairman, Nguyen Thanh Hung, owns 19%. The new joint venture airline was approved by local regulators on February 9 and will be called VietJet AirAsia.

According to filings with Bursa Malaysia,...

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