AirAsia Advances Talks on Vietnam Expansion

AirAsia is making progress on long-discussed plans to establish a new airline in Vietnam, according to Tony Fernandes, chief executive of parent company Capital A. While no final agreement has been reached, Fernandes confirmed that negotiations with a Vietnamese partner are underway to secure an Air Operator’s Certificate (AOC) in the country.

Fernandes noted that Vietnam has long been on AirAsia’s radar, with initial attempts to launch dating back to 2005. “As an ASEAN airline, it is only logical for us to be in one of the most promising countries in the region,” he said, adding that while talks remain fluid, he is optimistic about the eventual launch of AirAsia Vietnam.

Beyond Vietnam, Fernandes revealed that preliminary discussions are also taking place in Laos and Brunei, though there are no immediate plans for Myanmar or Singapore. AirAsia already operates successful joint ventures in Thailand, Indonesia, the Philippines, and Cambodia, making Vietnam the next major target in its Southeast Asian network.

In parallel, the group is close to finalizing a regional jet order of about 100 aircraft, with Airbus A220s and Embraer E2s under consideration. Fernandes emphasized that a 145–160-seat regional jet would enable AirAsia to expand into smaller destinations and build a robust feeder network, similar to U.S. regional operations.

While introducing a second aircraft type would bring complexity to its all-Airbus fleet, Fernandes believes the strategy is crucial for growth. AirAsia also recently committed to up to 70 Airbus A321XLRs to boost medium- and long-haul expansion.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com