TVJA investor sells off majority stake
The Thai investor who holds the majority stake in the Thai offshoot of Vietnam’s fledging budget carrier VietJet Air is breaking up the partnership.
Somphong Sooksanguan has sold 41% of his 51% holding in Thai VietJet Air (TVJA) and is in the process of relinquishing the remaining 10% to complete his withdrawal from the venture.
Mr Somphong cited differences between his and VietJet Air’s business management styles as the main reason for washing his hands of the start-up low-cost carrier.
Furthermore, he said he wanted to concentrate on expanding his own commuter airline in Thailand, Kan Air, and other new travel-related portfolio including car rental and hotels.
Mr Somphong confirmed to the Bangkok Post that he had recently completed the sale of a 41% share in TVJA held under his own name to an unnamed Thai investor.
He is closing the sale of remaining 10% in TVJA held under Kannithi Aviation, operator of Kan Air, to another Thai entity, within this month.
Mr Somphong, who hails from the south and built his fortune on the debt-collecting service of Kannithi Co, which he founded almost a decade ago, is the man behind the formation of TVJA back in early 2013.
The launch of TVJA has been delayed considerably much due t o certain complications at VietJet Air, according to sources familiar with the matter.
Mr Somphong’s departure from TVJA is not expected to affect the launch of the airline, a newcomer to the Thailand’s highlycompetitive low-cost carrier (LCC) market, sources said.
VietJet Air in December held ceremony in Bangkok to mark the launching of TVJA. The event was presided over by Vietnamese premier Nguyen Tan Dung.
Until recently, VietJet Air was still taking about launching regular TVJA services in the first quarter of this year.
TVJA has already secured an Air Operator’s Certificate from the Thai Civil Aviation Department, which allows it to use aircraft for commercial purposes within Thai skies and for flights out of the country.
It is in the process of acquiring approval from the Thai authorities to operate scheduled services from Bangkok’s Suvarnabhumi airport to Phuket, Chiang Mai, Hat Yai and Udon Thani.
TVJA chairman Nguyen Thanh Hung had earlier talked about putting four Airbus 320-200 single-aisle jetliners in service this year, adding another three to five aircraft annually.
The new LCC also aims to carry 1 million passengers in its first year of operation, increasing the number in subsequent years as its network and operation expand.
Meanwhile, Mr Somphong said Kan Air was on an expansion mode with the recent launch of two new routes from its Chiang Mai base, bringing its destinations to 10.
On Jan 30, it commenced the Chiang Mai-Hun Hin service with three flights a week and on Feb 2 started the Chiang Mai-Nakhon Ratchasima with four flights a week.