AirAsia yesterday said in a statement it had bought from Madam Nguyen Thi Phuong Thao a 30% equity stake in Vietjet Air for 180 billion dong that would allow it to set up a Vietnam-based joint venture low-cost airline to be known as Vietjet AirAsia.
The stake sale is believed to have the approval from Vietnam’s Transportation Ministry on Tuesday and the joint venture airline did not require fresh capital injection.
It is highly likely that AirAsia will second some of its aircraft for the operations in Vietnam and drive the venture given its expertise in running low-cost airlines. Vietjet AirAsia will operate both domestic and international flights and is currently finalising details regarding routes, frequencies and launch of flight.
But this airline owes almost 30 billion dong (US$1.6mil) for jet fuel and services, and has been unable to operate its sole plane since November, according to reports originating from Vietnam.
Vietjet Air has a share capital of 600 billion dong (RM112mil) and its founding shareholders are Sovico Holdings, HCMC Housing Joint Stock Commercial Bank and some individuals from Vietnam’s civil aviation industry. Following the completion of the share transfer, the shareholding structure in the joint venture airline will be AirAsia via AA International Ltd with 30%, Sovico Holdings with 51% and Nguyen Thanh Hung with 19%.
The move by AirAsia to enter Vietnam is to strengthen its base in the Asean region which has a population of nearly 600 million.
Via : The Star
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