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AirAsia also planned to set up two more affiliate carriers in the region, group chief executive officer Datuk Tony Fernandes said but declined to elaborate. 

Speaking after the signing of a letter of intent with Vietnam Shipbuilding Industry Group (Vinashin) for Vina AirAsia yesterday, Fernandes expressed confidence the partners would not only enjoy a productive and profitable outcome together but also the exchange of ideas, skills and technologies. 

“The growth potential in Vietnam's air travel is significant with its 84 million population and we are very excited to be working with a colossal corporation in Vietnam to develop this opportunity,” he said.  

Vinashin is one of the largest state-owned corporations in Vietnam. 

Vina AirAsia, in which AirAsia will hold a 30% stake (maximum holding allowable for a single foreign entity), will have an estimated legal capital of US$30mil and is expected to secure a licence to establish a low-cost airline in Hanoi by July next year.  

The airline is expected to build a fleet of nine aircraft in two years. 

The low-cost airline will serve Vietnam's domestic, regional and international routes. 

According to Fernandes, the partnership would help develop the tourism industry in Vietnam, particularly Hanoi, which is well known for its tree-lined boulevards and lakeside pagodas. 

“We will continue to offer low fares to benefit our passengers and help boost the tourism economy, which will drive inbound passenger traffic for both countries as well,” he said.  

AirAsia recorded net profit of RM185.05mil on revenue of RM432.15mil in its fourth quarter ended June 30, compared with RM130.77mil and RM313.73mil respectively in the previous corresponding period.  

Earnings per share rose to 7.9 sen from 5.6 sen previously.  

The growth was attributed to higher passenger volume, which grew 45% year-on-year.  

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