VietJet establishes Thai airline
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Vietnamese low-cost carrier, VietJet Air, has signed a joint venture agreement that will lead to the creation of a new Bangkok-based airline.
Signed at the Thai capital’s Plaza Athenee Hotel late last week, the deal with Thailand’s Kan Air will see the launch of Thai VietJet Air, a brand new budget airline based at Bangkok’s Suvarnabhumi Airport. Expected to commence operations in early 2014, the new carrier will initially operate a fleet of two or three Airbus A320 aircraft.
And addressing the signing ceremony in Bangkok, VietJet’s chairman, Nguyen Thanh Ha, indicated that the Thailand joint venture was one of many international subsidiaries the company intends to set up.
“VietJet Air is establishing many joint ventures in many countries,” Ms Nguyen said. “VietJetAir hopes to get more supports from local authorities, partners and passengers as to breakthrough in aviation industry, asserting its regional and global position. We would like to send our warmly greeting to Thailand. Thai VietJetAir will get further height in Thailand and international market, contributing to tighten up the partnership between Vietnam and Thailand.”
VietJet launched in Vietnam in late 2011 and has since grown rapidly. It now flies to 11 destinations in Vietnam and also operates two international routes, connecting Bangkok with both Hanoi and Ho Chi Minh City. Like AirAsia, which at one stage was planning to set up a Vietnamese subsidiary in partnership with VietJet, it operates a fleet of single-class, 180-seat A320 aircraft.
“Today, VietJet Air officially declared its flight launching to Thailand,” said Vietnam’s deputy prime minister, HE Nguyen Xuan Phuc. “With sound firm in terms of fleet and human resource, I do believe that VietJetAir will promote its strengths, confirm its service quality by international standards, introducing services to our international friends.”
Thai VietJetAir is expected to offer domestic and international services to destinations across the ASEAN region. It will compete directly with Thai AirAsia and Thai Airways’ new LCC, Thai Smile.
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