Vietnam Airlines calls for protection
HANOI – Vietnam Airlines is reported to have asked the government in Hanoi to prevent Malaysian low-cost airline AirAsia from forming a budget joint venture in Vietnam.
According to the national carrier, AirAsia’s acquisition of a 30 percent stake in local low-cost airline VietJet Air last month was aimed at easing the Malaysian group into the domestic market in Vietnam.
Prime Minister Nguyen Tan Dung was told joint ventures such as the one involving Australia’s Jetstar, and now AirAsia, harm the local industry.
VietJet Air, the first private airline to be licensed in Vietnam, said last month the Ministry of Transport has approved its joint venture with AirAsia.
VietJet AirAsia plans to operate both international and domestic flights starting May.
VietJet Air received its licence in 2007 but has delayed its first commercial flight many times.
Vietjet AirAsia, if finally established, will compete directly with Jetstar Pacific, the first low-cost airline in the country.
Qantas Airways holds a 27 percent stake in Jetstar Pacific.
Ian Jarrett
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