Kan Air sells Thai VietJet stake

BANGKOK  Kan Air’s president has thrown doubt on his airline’s participation in the start-up airline Thai VietJet Air.
Talking to TTR Weekly, airline president, Somphong Sooksanguan, said he would sell his 51% stake in the new airline to unidentified Thai investment groups.
His comments came as a surprise, as earlier in the week, Vietjet confirmed a new A320 would be delivered by Airbus to Thailand in March to start the first services.
In June 2013, VietJetAir inked a Memorandum of Understanding with Kan Air to form an aviation joint venture headquartered in Bangkok, Thailand, with a registered capital of USD6.5 million. The Vietnamese side owns 49%, while Kan Air retains the majority 51%. Vietjet was supposed to manage the airline taking responsibility for the entire operations, but to fulfill aviation and commercial regulations, Kan Air would own the majority share.
inside no 1The joint venture is part of VietJetAir’s strategy to expand its operations in Asia and to offer more options for passengers, particularly those in Vietnam and Thailand, to travel to Singapore, South Korea, Taiwan and other destinations in the region.
VietJetAir sales and marketing manager, Tya Vidhayasia, told TTR Weekly that the airline’s launch date had yet to be confirmed, but hopes were high that it would take the sky next month.
“We are waiting to finalise the timetable and flight schedules, which need the same departure and arriving times for seven daily service. The first service will link Bangkok (SWB) to Phuket.”
He added: “We hope the service can begin next month…we have to talk more with our Vietnamese partners …all should be more clear next week.”
However, Kan Air president, Somphong Sooksanguan told TTR Weekly that he was “rushing to sell his 51% holding in Thai VietJet Air”. The sale could be completed by March.
“I need to sell the entire 51% stake to a new investor groups because of the delay launching operations…it is harmful to the image of the new airline … too many postponements … we also have different views on the business plan … the way we run business is different.”
The president added: “More importantly, I want to upgrade Kan Air, so we can call it a Thai airline handled by Thais. I need to focus on this and leave the new airline to others who are interested.”
Regarding a Bangkok Post report, earlier this week, that claimed Thai VietJet Airline plans to start commercial services, 29 March, from Bangkok (Suvarnabhumi Airport) to Phuket, the president said he could not confirm any operational details; adding that right now he was focusing on selling his share so he could concentrate on developing Kan Air.
“To expand Kan Air business, the airline has proposed many routes to the Department of Civil Aviation last December but none of the routes have so far been approved.”
The proposed direct routes included flights from Chiang Mai to U-Tapao and from U-Tapao to Krabi, Phuket, Khon Kean and Hua Hin.
He commented: “However, the routes have not been approved, despite the DCA’s policy to expand air transport at domestic airports…there are over 20 domestic airports abandoned, although services would benefit the economy and tourism…so it does not make sense to me.”
The airline recently launched four weekly flights from Chiang Mai to Nakhon Ratchasima on Mondays, Wednesdays, Thursdays, and Saturdays.
“We will provide conveniences for passengers to travel across the country, for example, the flight between Chiang Mai and Nakhon Ratchasima cuts the travel time by not having to fly to Bangkok first.”
The airline also plans to take delivery of its second ATR72-500 with 66 seats early in March.
Kan Air is a domestic airline based in Chiang Mai, Thailand. It operates charters and scheduled services in North Thailand from Chiang Mai to Chiang Rai, Pai, Mae Hong Son, Nan, Phitsanulok, Mae Sot, Khon Kaen, Ubon Ratchathani, Nakhon Ratchasima and Hua Hin.

sourced:ttrweekly.com