Asia's
biggest budget carrier AirAsia has called off a proposed joint venture with
VietJet Aviation to launch a low-cost airline, citing a failure to obtain
Vietnamese regulatory approvals.
Private airlines to get off the ground?
In a filing with the Malaysian stock market
late Tuesday, AirAsia said the venture had failed to gain government permission
to employ the AirAsia brand across VietJet's commercial operations, and other
required approvals.
"As those conditions are fundamental for
the successful conduct of the business model for the intended joint venture,
the company has decided to allow the joint venture to lapse with immediate
effect," it said.
AirAsia said it would face no legal or
financial impact from the move.
The Malaysia-based budget carrier, which has
expanded rapidly through joint ventures in neighbouring countries, announced in
February it had bought a 30 per cent stake in VietJet, intending to set up a
Vietnam-based low-cost airline.
The carrier was to be known as VietJet
AirAsia.
AirAsia has become one of the airline
industry's biggest success stories after former music industry executive Tony
Fernandes acquired the then-failing company a decade ago.
Its 2010 full-year net profit nearly doubled
to 1.07 billion ringgit ($340 million) compared to 2009.
In July, AirAsia and Japan's All Nippon
Airways announced they would form a joint venture to establish a Tokyo-based
low-cost airline. AirAsia already has similar joint ventures in Indonesia, the
Philippines and Thailand.
AFP
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