12 - Dec : 2018

AirAsia's proposed Vietnam-based low cost unit will start flying in August, according to its joint venture partner.

Tran Trong Kien, CEO of Hanoi-based Thien Minh Group says the business will file an application for its air operator license by February 2019 and expects to receive approval within six months.

Under the terms of the partnership AirAsia will hold a 30% share in the business.

The new airline, which has not been formally named yet, will operate about five Airbus planes on domestic routes including Hanoi and Da Nang, as well to short haul regional destinations in Asia.

The fleet could expand to about 30 jets within three years, Kien told Bloomberg.

It expects to capture about 30% of the market within a decade.

Thien Minh Group operates Hai Au Aviation which flies seaplane services from Hanoi, and also owns resorts in Vietnam and Laos.

Its main competitor will be rapidly expanding budget airline Vietjet as well as national flag carrier Vietnam Airlines.

Another new entrant, Bamboo Airlines, expects to launch before the end of 2019.

Bamboo is owned by resort operator FLC Group.

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