Asian budget airline AirAsia has signed an agreement to launch a low-cost carrier service in China, as part of a joint venture between AirAsia, Everbright Group and Henan Government Working Group.
The service will have a base in the central eastern city of Zhengzhou, with AirAsia also agreeing to invest in aviation infrastructure at the airport, including a dedicated LCC terminal and an aviation academy to train pilots, crew and engineers.
Chief executive Tony Fernandes said in a statement: “This Chinese venture represents the final piece of the AirAsia puzzle”, completing the “loop” of services it already provides. AirAsia currently has operations in Malaysia, Thailand, Indonesia, Japan, Philippines and India.
The company has built up the airline in just 16 years to become Asia’s largest budget airline. The potential for the company in the Chinese market is huge, with it set to overtake the US to become the world’s biggest aviation market within the next decade.
AirAsia’s executive chairman Kamarudin Meranun said of the announcement: “China has been good to us and we want to give back in a big way, and this is just the start of an enduring partnership that will benefit both China and Malaysia.”