AIRASIA STILL LOOKING FOR OPPORTUNITY IN VIETNAM

By Rhoma Ahmad Razali
KUALA LUMPUR (Bernama) - AirAsia Bhd says it is still looking for an opportunity to grow its business in Vietnam, which has a lot of potential.

Airasia Bhd Group Deputy Chief Executive Officer kamarudin Meranun said even though the joint venture agreement with Vietnam's VietJet Aviation to launch a low-cost airline has been allowed to lapse, Airasia may relook at the agreement.

"In the proper time and condition, we may (relook the opportunity for a joint venture with VietJet), but it has to be the right time, environment and condition," he told Bernama after appearing in Bernama Radio 24's "Kerusi Panas" (Hot Seat) programme here Wednesday.

AirAsia Bhd in a statement Tuesday said it would not proceed with the proposed joint venture with Vietjet Aviation Joint Stock Company entered on Feb 9 last year, following the expiration of the prescribed period to fulfill various regulatory requirements.

Kamarudin said the move would not derail the airline's plan to expand in the region as it has succesfully formed several joint ventures including in the Philippines and with Japan's All Nippon Airways.

"We have already signed the agreement (with All Nippon Airways). It is just waiting to be launched and work is in progress now. Hopefully we can launch it in the first quarter of next year, earlier than what we anticipated," he said.

Earlier in the programme, Kamarudin said the collaboration between Airasia and Malaysia Airlines is to leverage on each other's strengths and develop the local airline industry besides eliminating irrational competition between the two airlines.

He also gave an assurance that the collaboration would not affect Airasia's fares, which he said would continue to remain low.

"The objective of Airasia is to be a low-cost carrier, and we will stay a low-cost carrier," he said.