Budget airline AirAsia’s grand plan for a China joint venture business has been grounded.
The Malaysian carrier signed an initial agreement last year to set up an airline business in Zhengzhou but the memorandum of understanding with financial firm Everbright Group and the government of Henan province has now expired.
In a statement AirAsia said ‘it will not be extended’ without elaborating.
"China remains an extremely important market for AirAsia, where we are currently the largest international low-cost carrier by capacity. We will continue to grow our presence in the market where we witness growing demand," the airline said.
Reuters reported earlier this year that AirAsia had been exploring other options to help fast track approvals such as buying an existing air operator’s certification.
The China JV was announced to great fanfare and described as ‘the final piece of the AirAsia puzzle’ in a goal to fully connect East and Southeast Asia.
AirAsia has several other international joint venture businesses across the region including the Philippines, Japan, Indonesia and India.
