AirAsia to add new brand

AirAsia has acquired a 30% equity stake in VietJet Aviation Joint Stock Company (VietJet Air), to establish a Vietnam-based JV LCC, which will carry the name VietJet AirAsia.

VietJet AirAsia will be operate both domestic and international routes and seeks to commence operations as early as April 2010 this year subject to regulatory approval.

The new carrier will provide low cost fares and competition to flag carrier Vietnam Airlines which has a 69% of all departures from the country. Low cost competition currently comes from Jetstar Pacific which has 12% market share and is the second largest carrier in the market.