In early October 2025, Aviation Magazine reported that analysts believe AirAsia is in negotiations to acquire a stake in Vietravel Airlines. Simultaneously, the airline is committed to investing in an aviation and logistics complex in Quang Tri, initiated by the T&T Group.
In late July, local leaders in Quang Tri met with a joint venture between Malaysia’s Capital A Group and the T&T Group to explore investment opportunities in the province.
Last week, international news outlets Malay Mail and Bangkok Post further reported that Capital A, the parent company of AirAsia, is in the early stages of negotiations to acquire a stake in Vietravel Airlines. This move could reshape the aviation landscape in Vietnam.
Discussions are focused on AirAsia acquiring a minority stake, adhering to Vietnam’s regulations that limit foreign ownership in airlines to 34%.
In response to this news, Capital A’s stock surged by 6.8% during Friday’s trading session (October 17), reflecting investor optimism.
Capital A’s stock price. Source: Yahoo Finance
AirAsia has not yet issued an official statement.
The most definitive confirmation came from Tony Fernandes himself. Speaking on the sidelines of the Forbes Global CEO Conference in Jakarta, the CEO of Capital A revealed that negotiations with a single partner are “progressing very well.” He added, “We are just a few terms away from being ready to execute a term sheet.” Although he did not specify, this statement significantly supports the reported information.
Vietravel Airlines welcomes its third Airbus A320CEO aircraft. Photo: Vietravel Airlines
Vietnam has long been a market that Tony Fernandes has sought to conquer. Despite previous unsuccessful attempts, most recently the dissolution of a joint venture with Gumin Co. and Hai Au Aviation in 2019, the AirAsia founder has never abandoned his ambitions. “It’s no secret that I’ve wanted to operate in Vietnam for a long time. As an ASEAN airline, our presence in one of the region’s most promising countries is entirely logical,” Fernandes stated.
The appeal of Vietnam’s aviation market is undeniable. With a strong post-pandemic recovery, driven by a growing middle class, robust domestic travel demand, and steady international tourist growth, Vietnam has become an attractive market.
However, Vietnam’s skies are highly competitive. The market is dominated by Vietnam Airlines and the low-cost carrier VietJet Air. Additionally, Bamboo Airways is undergoing restructuring, and new players like Sun PhuQuoc Airways are emerging.
If the deal between AirAsia and Vietravel succeeds, it will mark a significant turning point. For the relatively young Vietravel Airlines, backing from a giant like AirAsia would provide substantial advantages in capital, low-cost operational expertise, and access to an extensive international network.
For AirAsia, this partnership would complete its strategy to cover the entire ASEAN region. The combination is expected to intensify competition in the low-cost aviation segment, creating a strong challenger to VietJet Air’s current dominance.
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