Vietnamese Airlines enters Thai Market


The Bangkok Post recently reported that Somphong Sooksanguan, Chairman of Kan Air, is in talks with Vietjet Air to form a low-cost airline joint venture.

The two airlines plan to create a new company called Thai Vietjet Air, with the Thai side owning 51% and Vietjet Air owning the rest. Current Thai law restricts foreign investors from establishing domestic routes within the country.

According to the newspaper, this is how the Vietnamese low-cost airline is seeking to penetrate the Thai market. Previously, on February 10th, Vietjet Air chose Thailand as its first international destination when it expanded abroad, with a Ho Chi Minh City-Bangkok route. On June 1st, the airline will open a Hanoi-Bangkok route.

The Bangkok Post suggests the Thai Vietjet Air alliance could take off within six months.

Vietjet Air is the second airline in the ASEAN region to try to enter Thailand's low-cost airline market. Lion Air, Indonesia's largest low-cost carrier, took a similar approach and established Thai Lion Air, which is now taking shape with the recruitment of pilots, flight attendants, and ground staff.

According to a Bangkok Post source, Kan Air and Vietjet Air have reached an advanced stage of negotiations. If nothing changes, the joint venture airline could take off within six months with two Airbus A320s. Initially, the airline will fly domestically within Thailand and gradually expand to other countries in the region.

Vietjet Air is a Vietnamese low-cost airline that currently has six Airbus A320s and has ordered 20 more. The airline mainly flies within Vietnam. In addition to Thailand as its first destination, it plans to open routes to other destinations in the region such as Singapore, Incheon (South Korea), Narita (Tokyo, Japan), and Taipei (Taiwan).

Kan Air is an airline that operates mainly within Thailand. It began flying in 2010 with a registered capital of 200 million baht (approximately 140 billion VND). Recently, the chairman of the airline said it is planning to expand and will build an airport in Koh Phangan.

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