Vietnam expected to license Thai AirAsia budget airline to operate
Budget airline Thai AirAsia is expected to receive a license to begin flights to Vietnam next month, officials said Wednesday. "It's just a matter of time," said Ho Quoc Cuong of Vietnam's Civil Aviation Administration. He added that the low-cost carrier plans to begin services between Hanoi and Bangkok on June 15. The Thailand-based airline will offer seven flights a week between the two cities, but it's unclear what rates will be charged. The Thai carrier is a subsidiary of Malaysian-based AirAsia, the region's biggest budget carrier. AirAsia owns 49 percent of Thai AirAsia, while Thailand's Shin Corp. holds the remaining 51 percent.
Singapore-based Tiger Airways became the first budget carrier to begin service in the communist country on April 1. It operates four flights a week between Ho Chi Minh City and Singapore and three flights a week between Hanoi and the island state. Flights on the Ho Chi Minh City route have been 90 percent to 95 percent full, while the Hanoi route has recorded 55 percent to 60 percent occupancy, said Ta Viet Tien, chief representative for Tiger Airways in Vietnam. The airline offers airfares ranging from US$25 (€19.45) to US$150 (€116.7) one way, he said.
The Associated Press - May 11, 2005
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