Low-cost airline AirAsia has confirmed that it is in talks with a local partner in Vietnam as part of its expansion plan in ASEAN.
However, no agreement has been signed so far.
Chief Executive Officer Tan Sri Tony Fernandes stated that the discussions are progressing positively but various challenges can still arise from the negotiation stage to actual implementation.
In addition to Vietnam, AirAsia is also conducting preliminary talks in Laos and Brunei, while the Myanmar and Singapore markets remain among the ASEAN regions they have not yet explored.
Fernandes admitted that he has long wanted to expand AirAsia's operations to Vietnam and described it as a logical step for the ASEAN airline.
If AirAsia's branch in Vietnam is successfully established, they will become the third low-cost player in the country's market after Vietjet and Vietnam Airlines subsidiary Pacific Airlines.
