Bo Lingam, CEO of AirAsia Aviation Group, has indicated that establishing a standalone airline in Vietnam is back on the agenda, according to a recent interview with Bloomberg. This move reflects the company’s focused strategy on expanding within Southeast Asia, despite no current plans to establish operations outside this region.
AirAsia Aviation Group, a fully owned subsidiary of Capital A, is already managing several operations across Southeast Asia, including AirAsia Cambodia, Thai AirAsia, Philippines AirAsia, and Indonesia AirAsia, along with the AirAsia X brands. Additionally, a significant merger is underway that will integrate AirAsia Aviation Group with AirAsia Bhd into a new investment holding entity named AirAsia Group Sdn Bhd, with Lingam at the helm.
The Vietnamese aviation market, currently dominated by Vietnam Airlines and VietJetAir, presents a competitive landscape, with these carriers holding market shares of 38.01% and 37.53% respectively, based on weekly seat availability. Meanwhile, Malaysia’s AirAsia holds a 1% market share as the seventh-largest operator, and Thai AirAsia follows closely as the tenth, with a 0.87% market share.
While Lingam did not commit to a specific timeline for the launch of an AirAsia branded carrier in Vietnam, the ongoing interest highlights AirAsia’s strategic intent to enhance its presence in a region buoyed by growing aviation demand. This exploratory phase signifies the company’s commitment to strengthening its network and increasing its market penetration within Southeast Asia.
