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AirAsia lands two new partners for China based airline JV
Malaysia based budget carrier AirAsia has added two backers for its plan to establish a low cost airline venture in China.
Singapore’s Plato Capital and Oxley Capital have joined existing Chinese partners China Everbright Group and the Henan state government for the JV.
"The term sheet is valid for a period of no longer than 12 months for the parties to discuss and negotiate definitive agreements for the proposed joint venture," AirAsia said.
The term sheet is non-legally binding.
AirAsia has several affiliates based across Asia in Indonesia, the Philippines, India and Japan, and has long been keen to tap the booming domestic China market.
"With rapid liberalisation and the gradual easing of travel restrictions, China’s aviation market is experiencing remarkable growth." Plato Group said.
The new entity will be known simply as AirAsia (China) and will have its main base in Zhengzhou, Henan province.
AirAsia signed a MoU with Everbright and the Henan Government earlier this year.
The JV will invest funds in pilot, engineering and crew training, and MRO operations and will submit an application for an operating permit to the Civil Aviation Administration of China (CAAC).
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