Even With JV, Jetstar-AirAsia Competition Heats Up

Lest anyone thought the non-equity JV between AirAsia and Jetstar might reduce competition, news arrives that AirAsia has acquired a 30% stake in Vietjet Aviation to establish a joint-venture airline, Vietjet AirAsia. The airline expects to launch flights as early as April or June (what, no May?) this year.

Vietnam, in addition to national carrier Vietnam Airlines, is home to Jetstar Pacific, which is part of the Jetstar/Qantas group.

Vietnam is AirAsia’s third overseas base after Indonesia and Thailand, and only adds to the prowess of this dominating carrier in what is now the world’s largest market.

Given current troubles Jetstar Pacific is having with Vietnamese regulators, it will be curious to see how another foreign carrier pans out in the current operating environment. Might an Asian carrier fare better than a carrier with overseas (Australian) roots?

, ,

Leave a Reply