AirAsia, Everbright, Henan government to establish low-cost carrier in China

AirAsia Berhad has signed a memorandum of understanding (MoU) with Everbright and Henan Government Working Group to establish a low-cost carrier (LLC) in China, the company said.

The MoU outlines how the parties will incorporate a joint venture to be known as AirAsia (China) for the purposes of operating a low-cost aviation business based in Zhengzhou, the capital of Henan province in central China.

In addition, AirAsia (China) will 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 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.