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AirAsia to set up new budget carrier in Vietnam, posts higher 2007 profit

AirAsia to set up new budget carrier in Vietnam, posts higher 2007 profit

Malaysian low-cost carrier AirAsia unveiled plans to set up a new airline in Vietnam as part of its expansion, after earlier reporting a sharp rise in net profit for its 2007 fiscal year.
AirAsia will team up with Vietnam state-owned corporation Shipbuilding Industry Group, or Vinashin, to establish its third affiliate carrier in the region, said its chief executive Tony Fernandes. It already has affiliate carriers in Thailand and Indonesia.
AirAsia, which is Southeast Asia's largest budget carrier by fleet size, will own 30 percent and Vinashin 70 percent in the venture, Fernandes said.
The new airline, which will be named Vina AirAsia, is expected to build a fleet of 9 aircraft over the next two years, Fernandes said. AirAsia plans to set up two more affiliate carriers in the region "in due course," he said, without giving further details.
Vinashin is the largest shipbuilding company in Vietnam and is expanding its operations into other areas, such as financial investment and transportation service, officials said.
AirAsia earlier reported a 41.5-percent rise in net profit from last year for the quarter through June to 185.1 million Malaysian ringgit (US$52.9 million;


Updated : 2020-12-01 13:38 GMT+08:00