Budget carrier AirAsia said it has purchased a 30 per cent stake in VietJet Aviation, allowing it to establish a Vietnam-based low-cost airline.
The carrier will be known as VietJet AirAsia, AirAsia said in a statement late Wednesday. It did not reveal how much it paid for the acquisition.
"The birth of VietJet AirAsia contributes to the diversification of the aviation market in Vietnam, providing more options to meet the air travel needs of people in Vietnam and in the region," VietJet said in the statement.
AirAsia said the venture would operate both domestic and international flights, allowing it to expand its reach in Vietnam and open the country as another gateway in Southeast Asia.
It said Vietnam's transport ministry approved the share acquisition on February 9.
AirAsia said the new venture would be its fourth country base, following Malaysia, Thailand and Indonesia.
AirAsia, launched in December 2001 with just two aircraft, is now the region's fourth-largest carrier.