JAL to Tie Up with Vietnamese Budget Carrier

Hanoi, July 25 (Jiji Press)--Japan Airlines <9201> and Vietnamese budget carrier Vietjet Air said Tuesday they have formed a comprehensive business alliance, planning to operate code-share flights and allow their mileage program members to earn miles on flights by both airlines. The move is designed to tap demand from an expected rise in the number of people traveling between the two countries. Previously, JAL was in an alliance with state-run Vietnam Airlines. But the alliance was dissolved after ANA Holdings Inc. <9202>, the parent of JAL rival All Nippon Airways, acquired a stake of some 9 pct in Vietnam Airlines last summer. JAL aims to expand its business foundation in Vietnam with the low-cost carrier, which has been quickly growing thanks to not only low fares but unique services. Gaining a domestic market share of over 40 pct, Vietjet topped the national carrier to become the leading airline in the Southeast Asian country in January-June, securities industry people said. Through the alliance, Vietjet will aim to launch flights to Japan, as well as increasing the number of Japanese users of its domestic flights. END