Major Vietnamese tour operator Vietravel is looking to put up its own airline in Vietnam, even as Malaysia’s AirAsia Group Bhd announced it has cancelled its plan to enter Vietnam’s aviation market.
Vietravel Group said recently it has submitted to the Department of Transport the documents to open Vietravel Airline.
If the airline proposal gets approved, the company will forward its application to the government for final approval.
Vietravel chairman and CEO Nguyen Quoc Ky said the company has applied for a license to launch Vietravel Airlines in Thua Thien-Hue Province.
Ky said global travel companies now tend to operate their own aircraft. “They are completing their ecosystem, and [Vietravel] needs to do the same to step out into the world.”
Meanwhile, low-cost Malaysian airline AirAsia has put on hold its plan to join the airline industry of Vietnam after the latest failed attempt, its fourth.
It said it has ended a joint venture agreement signed in March 2017 with Gumin Company Ltd and Hai Au Aviation to set up a low-cost carrier in the country.
Previously, AirAsia had planned for the venture to start operation in Vietnam by August this year.
Despite its four failures, the airline, which operates flights from Vietnam to other ASEAN destinations like Malaysia and Thailand, said it is still interested in Vietnam’s booming aviation market.
In a tweet, AirAsia Group chief executive Tony Fernandes said Vietnam remains “very much in the plan” and he is still optimistic about the carrier’s presence in Vietnam by end of the year.
AirAsia said it remains interested in running a low-cost airline in Vietnam due to the favorable geographical location, expanding aviation market, and overall growth potential.
However, the launch of a fifth Vietnamese airline—Bamboo Airways—last January has intensified competition and added strain to the country’s aviation infrastructure.
Vietnam’s other operating airlines are national flag carrier Vietnam Airlines, budget operators Jetstar Pacific and Vietjet Air, and Viet Nam Air Service.
Vietnam is one of Asia’s fastest growing economies and air travel is booming, with domestic and inbound passenger numbers rising at double-digit rates in 2018.
Photo: Lưu Ly
