10 April 2010
Malaysian Prime Minister Najib Abdul Razak and Vietnamese Deputy Prime Minister Truong Vinh Trong Thursday (April 8) witnessed the signing of a strategic partnership agreement between VietJet Aviation Joint Stock Company (VietJet Air) and AirAsia Berhad.
VietJet Air CEO Nguyen Duc Tam and AirAsia Group CEO Tony Fernandes signed the agreement in Ha Noi Thursday.
AirAsia had earlier acquired a 30 per cent equity stake in VietJet Air, which is launching a Viet Nam-based low-cost airline. The trade name is tentatively VietJet AirAsia. VietJet AirAsia will be operating both domestic and international flights.
The governments of Viet Nam and Malaysia have been fully supportive to the launch of VietJet AirAsia, which will be offering low fares to grow travel and tourism in Viet Nam and in the rest of the Asean region. The signing of today's agreement on the sidelines of the 16th Asean Conference reinforces both companies' commitment to Vietnamese-Malaysian cooperation for economic growth in the region.
During the official signing ceremony, both companies also announced that they have entered into an engineering support services agreement.
Fernandes said, "We are grateful for the presence of the leaders of Malaysia and Viet Nam as we sign this agreement for strategic partnership. Their presence today is a clear indication that we have the support of both governments in our efforts to further grow tourism in the Asean region.
"Their support is instrumental in our ability to offer low fares to the Vietnamese people and the international tourists who flock to Viet Nam." VietJet AirAsia will complement the existing strengths of Viet Nam's tourism industry and help turn the country into a tourism powerhouse.
"We will be encouraging more tourists to fly to Viet Nam's various beautiful destinations with our low fares and contribute to tourism receipts that will in turn spur economic benefits."
"VietJet AirAsia will help boost tourist arrivals in Malaysia as well, improving the already strong people-to-people relations between Viet Nam and Malaysia and strengthening the process of Asean integration," added Fernandes.
"The launch of flights by VietJet AirAsia will undoubtedly benefit both leisure and business travelers. We expect our low flexible fares and world-class service quality to especially benefit people and enterprises in Vietnam, which are helping boost our economy. We'll also connect Vietnam to more cities in Asean to boost intra-regional travel," Tam said."Furthermore, with this services agreement, VietJet Air can enjoy technical expertise, experience in quality assurance, safety and security up to international standard, high quality manpower in aviation industry with a roadmap for technology transfer to VietJet Air's staff, which contributes to raising the standards of services and safety and security in the airline market in Viet Nam as well as in Asean region," Tam added.