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LAXintl
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Air Asia forms Vietnam unit

Fri Dec 07, 2018 12:54 am

AirAsia has agreed with its partner Thien Minh Group in Vietnam to launch a domestic airline in 2019, with a fleet of A320s and A321s. AirAsia owns 30% of the new venture, which will focus on underserved routes connecting key cities including Hanoi and Ho Chi Minh City, while also flying to Southeast Asia, China, South Korea and Japan.

AirAsia to launch airline in Vietnam with local partner
https://asia.nikkei.com/Business/Compan ... al-partner

=

Hopefully they have better luck this time.
Last edited by LAXintl on Fri Dec 07, 2018 1:20 am, edited 1 time in total.
From the desert to the sea, to all of Southern California
 
ArtV
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 12:59 am

This is the second time that they tried this. Air Asia was initially a partner with VietJet, but the authorities never permitted the investment (at the time) and VietJet went alone....but the DNA is very similar.

Thien Minh has their existing fleet of 4 seaplanes based out of Hanoi that they are using as the vehicle (Hai Au aviation) for the new commercial airline. They are also working on the basis that Bamboo Airlines, which was to start flying months ago but still is struggling to get things like aircraft and licenses (you know...the important things), will not succeed, and hence there is a substantial opportunity as the market in Vietnam (and number of airports) continues to expand.
 
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ikolkyo
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 1:00 am

Hm, I thought they already had an airline there. News to me.
 
kriskim
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 1:02 am

Actually their third time, we were suppose to see a fleet of blue AirAsia planes a fair while back. The JV was called Vina AirAsia a JV between Vinashin Group and AirAsia - this was the groups first attempt.
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MrHMSH
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 1:12 am

Just what the Vietnam aviation scene needs: more A32Xs!

It’s good to see more competition at least, but it’s going to be a very crowded space.
 
c933103
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 1:29 am

Interesting choice of partnership of a company appears to be focusing on high end tourism with products like sea plane flights?
 
Yossarian22
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 1:29 am

Hopefully this works out, Vietnam seems ripe for a quality LCC. I will go out of my way to avoid Vietjet and JetStar, have read too many stories of customers booking ghost flights, only to find out a day or two before departure their flight was “cancelled” and they have rebooked on a flight that leaves 12 hours later.
 
juliuswong
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 2:55 am

Good luck to AirAsia. They need a lot of it....let's hope this MoU comes into firm agreement, their China venture failed to take off.

With hundreds of new B737max and A320neo coming into Vietnam alone annually, it will be an uphill climb for AirAsia.
- Life is a journey, travel it well -
 
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unrave
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 3:01 am

With the imminent launch of Bamboo Airways, the Vietnamese aviation industry is getting a lot more competitive. I think VietJet will be the most affected by this sudden onslaught of competitors
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IndianicWorld
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 4:31 am

Yossarian22 wrote:
Hopefully this works out, Vietnam seems ripe for a quality LCC. I will go out of my way to avoid Vietjet and JetStar, have read too many stories of customers booking ghost flights, only to find out a day or two before departure their flight was “cancelled” and they have rebooked on a flight that leaves 12 hours later.


The LCC business model works on the margins, so to make any money it seems to be the race to the bottom across the board. Even if a carrier starts out with the aim of a quality focused LCC offering, things tend to find a less impressive end result.

Given the strong position that the existing carriers have, Air Asia’s late entry will be interesting to see. It certainly has been a very hit and miss expansion history for Air Asia across Asia.
 
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LAXintl
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 4:48 am

Vietnam is attractive as it is the worlds fastest growing market. Last 10-years has seen 276% in traffic growth since 2007, and per IATA its forecast to be one of the five fastest-growing markets over next 20-years.

https://www.iata.org/pressroom/pr/Pages ... 18-02.aspx
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Yossarian22
Posts: 79
Joined: Wed Feb 21, 2018 7:25 am

Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 8:35 am

IndianicWorld wrote:
Yossarian22 wrote:
Hopefully this works out, Vietnam seems ripe for a quality LCC. I will go out of my way to avoid Vietjet and JetStar, have read too many stories of customers booking ghost flights, only to find out a day or two before departure their flight was “cancelled” and they have rebooked on a flight that leaves 12 hours later.


The LCC business model works on the margins, so to make any money it seems to be the race to the bottom across the board. Even if a carrier starts out with the aim of a quality focused LCC offering, things tend to find a less impressive end result.

Given the strong position that the existing carriers have, Air Asia’s late entry will be interesting to see. It certainly has been a very hit and miss expansion history for Air Asia across Asia.


I’m a bargain hunting passenger, last year I flew completely around the world for less than $1500 USD, would have been about $1000 but I couldn’t find a cheap flight from China to Seattle to kick off the trip.

But, I actively avoid the current Vietnam LCC’s. They just don’t seem worth the trouble. I am quite a fan of AirAsia, I have flown them on plenty of short hops, plus all the way from HNL to KUL. They seem reasonably professional and competent. Living in China and traveling a great deal through Southeast Asia, AirAsia has become an LCC I trust to get me where I need to go. They are upfront about what you do and don’t get about your ticket, offer you more with reasonably priced bundles, and in my dozen or so flight segments with them now, I have not had a serious delay.
 
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neutrino
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 1:51 pm

Yossarian22 wrote:
AirAsia has become an LCC I trust to get me where I need to go. They are upfront about what you do and don’t get about your ticket, offer you more with reasonably priced bundles, and in my dozen or so flight segments with them now, I have not had a serious delay.

Well, you're lucky. I had a couple of over an hour delays and 3 flights totally cancelled. They then had the temerity to say that the returned money will be in the form of credits good towards settling in part any of their sectors; booked within 3 months. I wrote back to insist on immediate refunds through the same channel that I paid for, ie via my credit card.
After that, I seldom look at their website as there are other options. In recent years, JetStar is the LCC I used most often (hardly any delay and charges only a 1/4 of what AirAsia, etc for "admin fees"), followed by Scoot and LionAir or more specifically ThaiLionAir which comes with complimentary 20kg of checked-in baggage. So, different people have different experiences, hence different choices.
However, that said, AirAsia is still in my long range radar as there was an experience with them many years ago that left a sweet taste in my mouth. Three of my family members were booked on JetStar for SIN to BKK and then BKK to CEI on AirAsia with a more than sufficient 4 hour layover. But a couple of weeks from the date, JetStar's schedule was changed and the layover became only an hour which was rather tight. I then asked AirAsia for help to move to a flight of 2.5 hours later so my family would then have a comfortable transit time. They were very understanding and made the changes without any fees & charges though it was totally not their problem. So, both good and bad service will always be taken into account in my book.
Potestatem obscuri lateris nescitis
 
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PatrickZ80
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Re: Air Asia forms Vietnam unit

Fri Dec 07, 2018 8:40 pm

ikolkyo wrote:
Hm, I thought they already had an airline there. News to me.


Indeed they had an airline there. They pulled out and are now starting again.

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