Malaysian low-cost airline AirAsia will suspend flights between Ho Chi Minh City and the Thai beach destination of Phuket beginning May 15 due to "profitability reasons."
The largest discount carrier in Southeast Asia made the announcement just five months after it launched the service. The airline is offering refunds to passengers who have booked to fly after May 15.
The decision means the airline will fly from HCMC to only three overseas destinations: Bangkok, Jakarta, and Kuala Lumpur.
In related news, the budget airline Thursday signed a strategic cooperation pact with VietJet Air, Vietnam's first private airline, to provide aviation expertise and technical support.
AirAsia bought a 30 percent stake in VietJet Air to form budget joint venture VietJet AirAsia earlier this year. The airline, which will fly both domestically and overseas, aims to begin operations in late July or early August this year.