AirAsia abandons Vietnam venture
In this article (4)
It’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.
“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.
Questions & Answers
Q.Which entities were involved in the now-terminated joint venture agreement?
Which entities were involved in the now-terminated joint venture agreement?
AirAsia Investment Ltd, a wholly-owned unit of AirAsia, was set to collaborate with Gumin Company Ltd and Hai Au Aviation Joint Stock Company on the venture. These three parties mutually agreed to terminate their agreement.
Q.What is the effective date for the termination of this joint venture agreement?
What is the effective date for the termination of this joint venture agreement?
The mutual agreement to terminate the joint venture in Vietnam took effect today. The article does not provide a specific calendar date for this, only stating it is effective as of the current day.
Q.Why does AirAsia still wish to operate a low-cost airline in Vietnam despite this setback?
Why does AirAsia still wish to operate a low-cost airline in Vietnam despite this setback?
AirAsia remains interested in the Vietnamese market due to its favourable geographical location. The company also noted the expanding aviation market and the overall growth potential within the country as key attractions.
Reader pulse
AirAsia's Vietnam exit:
20,018 votes so far