AirAsia has unveiled plans to establish a potential new airline unit in Vietnam as part of its broader “multi-hub” expansion strategy across Southeast Asia. This development was revealed during a third-quarter earnings presentation where the company highlighted its intention to create “two new hubs in Vietnam with a potential new AOC in Vietnam.” The move represents a clear indication of AirAsia’s commitment to strengthening its presence in the region and solidifying AirAsia Vietnam operations.
While the timeline and specific details for the new Vietnam-based airline have not been disclosed, this plan aligns with AirAsia Group’s long-term network strategy. The group, currently undergoing divestment by parent company Capital A to AirAsia X, aims to bolster connectivity within the region, particularly with the introduction of AirAsia Vietnam.
Capital A chief executive Tony Fernandes has repeatedly expressed his ambition to expand AirAsia’s footprint in Southeast Asia through new airline units. The group already operates airlines in Malaysia, Thailand, Indonesia, the Philippines, and Cambodia. Its latest addition, AirAsia Cambodia, began operations in mid-2024, demonstrating its ongoing commitment to growth and looking forward to AirAsia Vietnam as well.
In 2023, Fernandes highlighted plans to launch two additional airlines in the region, including AirAsia Cambodia. This topic resurfaced during an analysts’ briefing in March 2024, where the possibility of a new Southeast Asian airline unit was discussed. However, no further details were provided at the time, leaving the specifics of AirAsia Vietnam eagerly anticipated.
If realized, the proposed Vietnam-based airline would become the third low-cost carrier in the country, joining Vietjet and Pacific Airlines, which is owned by Vietnam Airlines. AirAsia would therefore mark a significant addition to the market.
Focus on Low-Cost Operations in Southeast Asia
AirAsia has consistently focused on providing affordable travel options across Southeast Asia, and the potential Vietnam airline unit is a natural extension of this mission. With Vietnam’s growing demand for low-cost air travel, the group aims to tap into a competitive market dominated by established players, introducing AirAsia Vietnam into the mix.
As AirAsia continues its expansion, its emphasis remains on establishing strong regional hubs that cater to the diverse needs of Southeast Asian travelers. The proposed Vietnam unit reflects AirAsia’s dedication to enhancing its network and providing accessible travel options to more destinations, with AirAsia Vietnam playing a pivotal role.
