AirAsia’s subsidiary abandons joint venture in Vietnam

A man walks past the logo of AirAsia at Don Muang International Airport in Bangkok June 14, 2016. — Reuters pic
A man walks past the logo of AirAsia at Don Muang International Airport in Bangkok June 14, 2016. — Reuters pic

KUALA LUMPUR, April 17 — AirAsia’s wholly-owned unit, AirAsia Investment Ltd, together with Gumin Company Ltd and Hai Au Aviation Joint Stock Company, have mutually agreed to terminate the agreement to set up a joint venture in Vietnam, effective today.

AirAsia in a filing with Bursa Malaysia today said AirAsia Investment, Gumin and Hai Au Aviation have amicably agreed to terminate and release each other from all obligations under the transaction agreements in relation to the proposed joint venture in Vietnam.

“The company, nonetheless, remains interested in operating a low-cost airline in Vietnam due to its favourable geographical location, expanding aviation market and overall growth potential,” it said. — Bernama

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