Monday, May 15, 2017

AirAsia readies for LCC JV in China

AirAsia's Kamarudin Meranun, Everbright Financial Investment Holding's Wang Weifeng, Malaysian prime minister Najib Tun Razak, AirAsia's Tony Fernandes, China Everbright Group's Gao Yunlong and Henan Airport Group's Li Weidong


AirAsia has signed an MoU with Everbright and Henan Government Working Group outlining the incorporation of a joint venture to be known as AirAsia (China).

Under the agreement, AirAsia (China) will be based in Zhengzhou, capital of Henan province, and 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.

AirAsia Group CEO Tony Fernandes said: “We chose Zhengzhou as our base due to its strategic location and importance as a logistics hub. As China’s gateway to Europe, Zhengzhou sits at the centre of a vast rail, highway and air transport network that forms the linchpin of China’s development plans for its central and western regions. With president Xi Jinping’s vision for One Belt, One Road, Zhengzhou is set to become even more important, not least as the heart of low-cost air travel in North Asia.

“This Chinese venture represents the final piece of the AirAsia puzzle. 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."

Henan Provincial People’s Government deputy governor Shu Qing, said: “With AirAsia supporting the city’s aeropolis – an industrial, commercial and logistics zone five times the size of Manhattan with the airport at its heart – we have absolute confidence that we will succeed in transforming Zhengzhou into the new hub for global transport and logistics.”

-TTG Asia.

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