Thursday, December 16, 2010

AirAsia in Philippines JV for low-cost airline ops

KUALA LUMPUR: AIRASIA BHD [] is stepping its presence in the Philippines, this time via the setting of a joint venture with several Filipino parties to establish a low cost airline there.

AirAsia said on Thursday, Dec 16, the company to be incorporated for the joint venture is named AirAsia Inc.

Its unit AA International Ltd had on Thursday sealed a shareholders agreement with Antonio O. Cojuangco Jr., Michael R Romero and Marianne B. Hontiveros to set up the JV based on the successful AirAsia business model.

AirAsia said the JV will leverage on AirAsia's strength to forge into markets in China (with Macau and Hong Kong), Taiwan, Korea, Japan as well as Singapore.

'These sectors will enhance AirAsia's ASEAN regional expansion by providing AirAsia with additional routes and destinations and linking the destinations with AirAsia's already comprehensive route network.

'The feasibility study forecasts that the JV will be operationally feasible and financially viable, and is expected to contribute positively to AirAsia's financials both directly and indirectly in the future,' it said.

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