However, Fernandes says a Vietnam operation will still happen. “I am still optimistic of airasia (sic) being in Vietnam by end of the year. Watch this space. Picking the right one,” he tweeted.
AirAsia has failed in another attempt to launch a low-cost carrier in Vietnam following the scrapping of a joint venture with local partners.
AirAsia, in a filing with Bursa Malaysia, 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.
AirAsia had planned for the venture to start services in Vietnam by August this year.
Flight Global said the decision marked a setback for AirAsia chief executive Tony Fernandes, who views Vietnam as a core part of South-east Asia’s airline industry.
However, Fernandes says a Vietnam operation will still happen. “I am still optimistic of airasia (sic) being in Vietnam by end of the year. Watch this space. Picking the right one,” he tweeted.
AirAsia, which already has offshoots in Indonesia, Thailand, India, Japan and the Philippines, failed in two previous attempts to launch a JV operation in Vietnam.