AirAsia, which is raring to set up a joint venture budget airline in China, has entered into a non-binding term sheet with China Everbright Group and two Singapore-based companies, Plato Capital and Oxley Capital, towards that end.
Signed on September 25, the term sheet confirmed the parties’ interest in the joint venture, with a validity period of up to 12 months for discussions and negiotiatons leading up to a definitive agreement.
AirAsia, Everbright and Henan Government Working Group had on May 14 signed an MoU to establish a LCC in China, portions of which have also been included in the new term sheet.
The agreement outlined intentions to incorporate a joint venture to be known as AirAsia (China) to operate a low-cost aviation business based in Zhengzhou, the capital of Henan province in central China.
Plans were also for AirAsia (China) to invest in aviation infrastructure, including a dedicated LCC terminal at Zhengzhou airport and an aviation academy to train pilots, crew and engineers, as well as maintenance, repair and overhaul (MRO) facilities to service aircraft.
AirAsia Group CEO Tony Fernandes, said that the China venture represents “the final piece of the AirAsia puzzle”, closing the loop on all major territories in Asia-Pacific.