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Vinashin's airline plans fall from the sky

Vinashin's airline plans fall from the sky

Hanoi: Vietnam's state-owned Shipbuilding Industry Group, or Vinashin, has decided not to pursue a joint venture with Malaysian carrier AirAsia Bhd to form a low-cost airline in Vietnam, a Vinashin official told Dow Jones on Friday.

"Vinashin stopped its plans with AirAsia after we received a decision from the government saying that we shouldn't go ahead, after we signed a letter of intent to establish a low-cost airline in Vietnam with an initial capital of $30 million," said the official with Vinashin's headquarters in Hanoi.
"We have informed AirAsia about this decision and wait for an appropriate time later to discuss this issue (with AirAsia)," the official, who declined to be named, said.

Vinashin signed the letter of intent in Kuala Lumpur on Aug. 30, witnessed by Vietnamese Prime Minister Nguyen Tan Dung, which appeared to indicate the venture had official approval.

"For whatever reasons, Vinashin will obey the government's decision," the company official said. [2/11/07]