AirAsia to launch new Chinese low cost carrier
In this article (4)
AirAsia signed a joint venture agreement with China on Sunday to establish a low cost carrier (LCC), with a base in the east-central city of Zhengzhou. AirAsia (China) is a joint venture between AirAsia, Everbright Group and Henan Government Working Group, the airline said in a statement.
AirAsia (China) will also invest in aviation infrastructure, including a dedicated LCC terminal at Zhengzhou airport and an aviation academy to train pilots, crew and engineers, as well as maintenance, repair and overhaul (MRO) facilities to service aircraft, the statement said.
No further details of the LCC were provided.
Malaysian Prime Minister Datuk Seri Najib Tun Razak, who is on a visit to China, witnessed the signing of the joint venture agreement.
“This Chinese venture represents the final piece of the AirAsia puzzle,” said AirAsia Group CEO Tan Sri Tony Fernandes.
“In just 16 years, we have successfully built a presence in Malaysia, Thailand, Indonesia, Philippines, India and Japan, with China closing the loop on all major territories in Asia Pacific.”
AirAsia and AirAsia X currently fly to 15 destinations in China and the group is the largest foreign LCC operating into the country.
Questions & Answers
Q.Which organisations are partners in the new Chinese low-cost carrier venture?
Which organisations are partners in the new Chinese low-cost carrier venture?
AirAsia (China) is a joint venture between AirAsia, Everbright Group and the Henan Government Working Group. These three entities have signed the agreement to establish the new airline based in Zhengzhou.
Q.What additional investments will AirAsia (China) make beyond operating flights?
What additional investments will AirAsia (China) make beyond operating flights?
The new carrier will invest in aviation infrastructure, including a dedicated low-cost terminal at Zhengzhou airport. It will also establish an aviation academy for training and maintenance, repair, and overhaul facilities.
Q.How significant is the Chinese venture to AirAsia's overall strategy?
How significant is the Chinese venture to AirAsia's overall strategy?
AirAsia Group CEO Tan Sri Tony Fernandes stated that this Chinese venture represents the final piece of the AirAsia puzzle. It completes their presence across all major territories in the Asia Pacific region.