AirAsia to ink more JV pact with regional airlines

Low-cost airline, AirAsia Bhd, will sign five
more joint-venture agreements with regional airlines within the next two years
to expand its business in the region.

Chief executive officer, Tan Sri Tony Fernandes, said the move was in line
with AirAsia's ambition to become the leader in the industry.

"The enormous potential in an underserved market of three billion people
spread across Asean, North-East Asia and South Asia offers huge opportunity and
AirAsia is ideally positioned to reap huge dividends by serving this market," he
said after announcing the set-up the airline's Asean office in Jakarta here
today.

AirAsia had signed a joint venture agreement with Japan's All Nippon Airways
to form AirAsia Japan, which is expected have its first flight in August.

In line with the company's expansion strategy, he said, the airline was also
considering placing an additional order for 50 planes to its existing order of
75 planes, scheduled to be delivered by 2016.

He said the airline might ask Airbus to advance the aircraft to fill the
requirements of its operations.

Fernandes said the Asean office, called AirAsia Asean, would focus on the
development of its regional operations as well as to bring the airline to a
higher level.

The office, which would serve as the 'nerve centre' of its regional
operation, would help the airline to engage more closely with the Asean
secretariat headquartered in Jakarta, he said.

He said the office would also help raise the profile of AirAsia Indonesia,
which was scheduled for listing on the Jakarta Stock Exchange by year-end.

Fernandes said with the establishment of the Asean office, he would leave
his post as CEO of Malaysian operation to focus on the regional operation and
would announce his replacement on Monday. -- Bernama