AirAsia, Everbright, Henan government set up LCC service in Tiongkok

The ability of AirAsia Berhad to continue its business is increasingly in doubt, amid the debt and the impact of COVID-19 that hit the Malaysian and global aviation sector - Photo by the Company

JAKARTA (TheInsiderStories) – AirAsia Berhad signed the memorandum of understanding (MoU) with Everbright and Henan Government Working Group to develop low cost carrier (LCC) in Tiongkok. The third parties will establish joint venture  company namely AirAsia (China) to serve LCC based in Zhengzhou, the capital city if Central Tiongkok.

The MoU was signed by AirAsia Group CEO Tony Fernandes, Executive Director and President of Everbright Financial Investment Holding, Wang Weifeng, and Vice Chairman and President of the Henan Airport Group, Li Weidong at China World Hotel yesterday. The signing of the agreement was witnessed by Malaysian Prime Minister Najib Razak.

AirAsia (China) will invest to develop aviation infrastructure including special terminal and maintenance, repair and overhaul (MRO) facilities in Zhengzhou airport .Turut hadir pada penandatanganan perjanjian Executive Chairman AirAsia, Datuk Kamarudin Meranun; Senior Independent Non-Executive Director AirAsia, Fam Lee Ee dan Presiden AirAsia Kawasan Asia Utara, Kathleen Tan.

“We chose Zhengzhou as our base because of its strategic location and significance as a logistics center. As China’s gateway to Europe, Zhengzhou is at the center of the railway, highway and air transport network that makes it the cutting edge of policy To develop the central and western regions of China, with President Xi Jinping’s vision of realizing One Belt, One Road, Zhengzhou will become even more significant, at least as the heart of cost-efficient air travel in North Asia,” Tony said in press statement.