Posted on: 11 October 2011 by Mark Howells
AirAsia has announced that its proposed Joint Venture with Vietjet Aviation Joint Stock Company (“Vietjet”), entered into on 9 February 2010, is not to proceed, following the expiration of the prescribed period to fulfil the various regulatory requirements stipulated under the Share Purchase Agreement and the Shareholders Agreement (“JV Agreements”).
Among the conditions under the JV agreements which remain outstanding to-date include the regulatory approval for Vietjet to employ the AirAsia Brand across its commercial operations. AirAsia says that as those conditions are fundamental for the successful conduct of the business model for the intended joint venture, it has decided to allow the JV to lapse with immediate effect.
There is no legal and financial impact to the expiry of the JV Agreements and Vietjet stills plans to launch low-fare services, however, but will do so under its own brand.