AirAsia, Asia’s largest budget carrier, signed a joint venture (JV) agreement on May 14 In Beijing with China Everbright Group, a state-owned financial enterprise, and Henan Government Working Group to establish a low-cost carrier (LCC) in China.
The JV, AirAsia (China), will have its base in the east central city of Zhengzhou, the capital of Henan province in central China, said AirAsia in a statement.
The proposed low cost carrier 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.
No other details of the LCC, such as the launch date, destinations, etc, were provided in the issued statement.
Zhengzhou, base for AirAsia (China), is China’s gateway to Europe (image credit: urf/iStock)
Malaysian Prime Minister Datuk Seri Najib Tun Razak, who is in Beijing for the Belt and Road Forum (May 14-15) witnessed the signing of the JV. (The forum is China’s answer to Davos or the G20, centered around the ‘One Belt, One Road’ inspired by the ancient Silk Road trading route.)
AirAsia group CEO Tan Sri Tony Fernandes said the airline chose as Zhengzhou as AirAsia (China)’s 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’, the city is set to become even more important, not least as the heart of low-cost air travel in North Asia, added Fernandes.
“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,” he revealed.
It’s a deal (L-R): 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
According to AirAsia executive chairman Datuk Kamarudin Meranun the new JV was the latest in a long line of strategic collaborations with Chinese companies, from Tencent, Alipay and Union Pay for payments to Industrial and Commercial Bank of China for aircraft financing and China Aircraft Leasing Group Ltd for aircraft leasing.
“In addition, we are working closely with Huawei to create a digital airline and smart airport to transform the way we fly.”
Henan Provincial People’s Government deputy governor Shu Qing, said the province is happy to offer AirAsia a home in China.
“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,” he added.
AirAsia was the first foreign LCC to enter China and has carried more than 40 million guests since its inaugural route to China in April 2005. AirAsia and AirAsia X currently fly to 15 destinations in China and is the largest foreign LCC operating into the country.
• Featured image credit: NuttKomo/iStock