Vietnam Airlines opposes VietJet Air’s share sale

Vietnam Airlines (VNA) has recently sent a petition to prime minister opposing the investment cooperation (under any ways) between cheap air carrier-Air Asia (Malaysia) and VietJet Air Aviation Joint Stock Co (VJA) to establish VietJet AirAsia-a cheap aviation carrier.

The above petition was sent after VJA sold 30 percent stake to AirAsia.

In the document sent to prime minister, VNA said that allowing cheap air carriers massively joining Vietnam market and seeking way to buy domestic “trade marks” cheaply will be likely to cause serious impacts on the existence and development of Vietnam’s newly established aviation firms.

Talking with Tuoi Tre (youth) newspaper, Nguyen Duc Tam, VJA’s general director said that till date, AirAsia has finalised all procedures to buy shares into VJA. Tam affirmed that “VJA having foreign shareholder is completely suitable with Vietnam’s law. With the holding of 30 percent stake, AirAsia plays only role as a shareholder in the local firm. The company’s all strategic decisions will be decided by the director board under the majority principle”.

Tags: VietJet Air, Vietnam air, Vietnam air industry, Vietnam airlines, Vietnam aviation, Vietnam aviation sector

Posted by VBN on Mar 15 2010. Filed under Aviation. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry