AirAsia drops plan to fly to Vietnam this year
AirAsia, Southeast Asia's number one low-cost carrier by revenue, will not fly the Malaysia-Vietnam route this year as planned, its chief executive Tony Fernandes said Wednesday.
The carrier also suspended its plan to fly the Malaysia -Myanmar and Malaysia-Laos routes, he told reporters.
"There has been a slight hiccup. I don't think it will happen this year," he said.
Thai AirAsia, a subsidiary of Malaysia-based budget carrier AirAsia, last month announced its plan to open direct flights between Hanoi and Kuala Lumpur in October.
According to Fernandes, AirAsia had applied to fly these routes and once approvals were obtained it would complete the airline's coverage in Association of South-East Asian Nations (Asean).
Fernandes said inter-Asean travel currently contributed about 35 percent of AirAsia's revenue.
Thai AirAsia, which entered the Vietnam market in 2005, currently flies twice a day between Hanoi and Bangkok.
Singapore-based Tiger Airways became the first budget airline operating flights to Vietnam in April last year.
Bernama (.my) - August 2, 2006.
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