AirAsia Bhd’s shares rose in early session today following a memorandum of understanding signed between the low-cost airline and two Chinese partners to set up a low-cost carrier in Zhengzhou, China.
At 10.29, AirAsia share rose five sen to RM3.53 with 2,734,300 million shares traded.
The two Chinese partners are China Everbright Group and Henan Government Working Group to establish a low-cost carrier (LCC) in China.
Under the deal, parties will incorporate a joint venture known as AirAsia China.
AirAsia (China) will 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. – Bernama