Thai VietJet Finally Gets Permit To Operate

23rd Dec 2014

AirAsia Plane

Thai VietJet is the 8th budget airline, and the latest addition to Thailand's already crowded low-cost travel market, after securing its AOC which legally and officially allows it to operate air services in the country.

Thai VietJet is a joint venture between Vietnam's VietJet and Thailand's Kannithi Aviation Ltd., which also operates Kan Air.

The Vietnamese airline and its Thai partner announced their joint venture in the middle of 2013 to set up a local low-cost subsidiary of VietJet in Thailand. Following the Thai FDI law, the Vietnamese partner owns no more than 49% stake of the venture, while its Thai partner holds the remaining 51%.

VietJet, the mother unit of the new airline, will undertake the management and day-to-day operations.

Unlike most other low-cost carriers operating in Thailand, Thai VietJet plans to operate from its hub in Bangkok's Suvarnabhumi Airport. It plans to launch four routes from Bangkok to popular destinations such as Chiang Mai, Phuket, Hat Yai, and Udon Thani.

Initially, it will operate three narrow-body A320 jetliners for its maiden operations.

The airline is already eyeing to launch international routes from Bangkok to Myanmar, Thailand's next-door neighbor that borders to the west. But it won't happen until late 2015 or early 2016, depending on the performance of its maiden operations in Thailand.

The airline's Chairman of the Board, Nguyen Thanh Hung, said that the new venture was a product of the owners' desire to offer a wonderful experience to air travelers at affordable fares.

He further said that he finds it easy for Thai VietJet to progress into one of Thailand's most admired airlines simply because they will treat their customers with utmost respect.

Its mother unit, VietJet Air, is Vietnam's is relatively young and the first privately-owned airline to operate in the country. It claimed to have carried 8 million passengers since it commenced operations in 2011.

It currently flies to 13 domestic and 5 international destinations with its hubs in both Hanoi and Ho Chi Minh.

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