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AirAsia Vietnam to launch in 2018
April 7th 2017
Malaysian budget conglomerate, AirAsia Group, has announced it planned to launch a Vietnamese subsidiary in 2018, in partnership with local investors. It is the group’s third attempt to enter the fast growing Vietnamese market. Read More »
AirAsia’s wholly-owned subsidiary, AirAsia Investment (AAI), signed a shareholder agreement and a share subscription agreement with Gumin Company Ltd, and Hai Au Aviation JSC.
AirAsia Vietnam will have a one trillion dong (US$44 million) market capitalization. AAI will hold a 30% stake, Gumin 69.99% and Mr. Tran Trong Kien 0.01%. The group will contribute 300 billion dong to the carrier’s base capital and additional loans, advances and securities.
"The joint venture aims to be an airline in Vietnam which offers affordable, but high-quality, airline service to Vietnamese and foreign tourists by leveraging the best-in-class LCC business mode. It is expected to give the Vietnamese population greater choice and spur overall economic growth," AirAsia said.
"Given the sizeable population of 95 million, there is great potential for growth in Vietnam. This clearly presents an opportunity for another low cast carrier to enter into the market. In addition, the middle class population is expected to represent 23% of the country’s population by 2020, which will fuel air travel in Vietnam."
Vietnam will be tenth largest passenger market by 2035. It is forecast to have annual aviation growth of 14.8% to 2020, the highest of any nation in the world, Airport Council International (ACI) data reports.
Hai Au Aviation is a unit of Tran-owned Thien Minh Group, which is the largest privately-owned travel and hospitality group in Vietnam. Hai Au operates three Cessna Grand Caravan 208EX amphibians on flights around Vietnam.
Vietnam’s skies are filling up. VietJet Air is on a rapid growth trajectory, with approximately 200 Airbus and Boeing aircraft on order. Flag carrier, Vietnam Airlines, has 45 planes on order, including 17 additional A350s, and Jetstar Pacific wants to more than double its A320 fleet, to 30 aircraft. In three years.
