AirAsia scraps proposed Vietnam joint venture
AirAsia Group has pulled out of its proposed Vietnam joint venture.
The three-way JV has been terminated amicably, AirAsia said in a filing with Bursa Malaysia.
AirAsia had agreed to set up an airline business in Vietnam with Gumin Company Ltd and Hai Au Aviation Joint Stock Company.
It gave no reason for scrapping the JV.
It first mooted the idea of setting up a Vietnam based low cost airline back in 2017 and signed a memorandum of cooperation last year.
"The termination of the joint venture is not subject to the approval of the company’s shareholders and is not expected to have any financial impact on the net assets or gearing of the company," AirAsia said.
The company says it is still bullish on the Vietnam market and remains interested in operating a low-cost airline unit there.
It is another blow to its expansion plans following the termination of a China joint venture recently.
Vietnam is one of the world’s fastest growing aviation markets but competition is hotting up.
Budget airline Vietjet and Vietnam Airlines are the two dominant players while new startup Bamboo Airways launched services earlier this year.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025