AirAsia signs MOU for Low Cost airline in China

AirAsia has signed a memorandum of understanding (MoU) to establish a low-cost carrier (LCC) in China. The MoU was signed in Beijing on 14th May 2017 with China’s Everbright and Henan Government Working Group to incorporate a joint venture airline. The new airline will be known as AirAsia (China) to be based in Zhengzhou, capital of Henan province in central China.

The MoU was signed on the sidelines of the two-day Belt and Road Forum which introduces a raft of infrastructure and communications initiatives across China and other countries.

As part of the memorandum, AirAsia (China) will invest in aviation infrastructure, including the building of a dedicated LCC terminal at Zhengzhou airport and an aviation academy to train pilots, crew and engineers. In addition, the plan will cover maintenance, repair and overhaul (MRO) facilities to service aircraft.

In a statement released in conjunction with the signing, Henan Provincial People’s Government Deputy Governor Shu Qing said Henan was very pleased to offer AirAsia a home in China.

He added,

….. Zhengzhou was once the capital of ancient 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. Deputy Governor Shu Qing

The MoU was exchanged between AirAsia Group CEO Tony Fernandes, Everbright Financial Investment Holding Executive Director, President Wang Weifeng and Henan Airport Group Vice Chairman and President Li Weidong.

…. 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. Tony Fernandes

AirAsia was the first foreign low-cost carrier to enter China. Since their inaugural flight in April 2005 they’ve carried more than forty million passengers. AirAsia and AirAsia X are the country’s largest foreign LCC, flying into fifteen destinations in China.