AirAsia Group has put its proposed Vietnamese joint-venture on hold but said it remains interested in operating a low-cost carrier in the country.
"The Company wishes to announce that its wholly-owned subsidiary AirAsia Investment Limited, together with Gumin Company Limited and Hai Au Aviation Joint Stock Company, have amicably agreed to terminate and release each other from all obligations under the transaction agreements in relation to the proposed joint venture in Vietnam, effective 17 April 2019," the Malaysian group said in a stock market filing.
AirAsia underlined that it still remains interested in operating in Viet Nam "due to its favourable geographical location, expanding aviation market and overall growth potential."
The three companies inked a Memorandum of Understanding in 2018 to launch AirAsia Vietnam (Da Nang). By partnering with existing seaplane operator Hai Au Aviation, AirAsia hoped to circumvent the strict restrictions on new airline start-up in Viet Nam. In a March 2019 interview, the Group Deputy CEO (Airlines) Bo Lingam told ch-aviation that AirAsia Vietnam was not expected to launch earlier than in the third trimester of 2019.
AirAsia Group recently also terminated its attempted forays into Myanmar and China.
