Discussions centre around Malaysia-based AirAsia taking a small interest in Vietravel, as it is more commonly known.
“Considering Vietnam caps foreign ownership of carriers at no more than 34%,” the people said, asking not to be identified because the details are private.
“Discussions aren’t final and may change,” they added.
Representatives for AirAsia didn’t respond to a request for comment.
Vietravel said in a statement that it’s actively negotiating with aircraft manufacturers and international airlines to expand its fleet and routes, without expanding on any potential transaction.
“The outcome of any talks would be announced in due course, it said.
Fernandes, speaking in Jakarta on Wednesday on the sidelines of the Forbes Global CEO Conference, said talks were “progressing very well” with a single partner, declining to elaborate.
“We’re down to a few more terms and then ready to execute a term sheet,” he said.
Vietnam is one of Southeast Asia’s fastest growing aviation markets.
Passenger volumes have rebounded sharply in the post-pandemic era, fueled by a growing middle class, increasing domestic travel demand and robust inbound visitors from places like China, South Korea and India.
It’s also a competitive landscape. Just this week new entrant Sun PhuQuoc Airways said it plans to acquire 100 Airbus SE and Boeing Co jets within five years as it seeks to crack the nation’s congested skies.
The market is currently dominated by Vietnam Airlines JSC and budget airline VietJet Aviation JSC, while smaller player Bamboo Airways JSC is also seeking more business.
In 2019, AirAsia terminated a proposed joint venture arrangement with Gumin Co and Hai Au Aviation JSC to set up a low cost carrier in Vietnam but said it remained interested in the nation due to its favourable geographical location and overall growth potential.
Last month, Fernandes again said discussions were underway with a local partner in Vietnam but no agreement had been finalised.
“It is no secret that I have wanted to operate in Vietnam for a long time.
“As an Asean airline, it is only logical for us to be in one of the most promising countries in the region,” he said on the sidelines of the Asean Economic Ministers’ Meeting 2025 in September.
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