AirAsia Group has announced it has pulled the plug on AirAsia China (Zhengzhou) following a lack of progress in the project.
In May of last year, the Malaysian low-cost carrier specialist signed a Memorandum of Understanding (MOU) with the China Everbright Group and Henan Government Working Group over the establishment of AirAsia China. Its wholly-owned unit, AirAsia Investment Ltd (AAIL), was then granted a business licence by the local Chinese government for a wholly-owned subsidiary known as AirAsia (Guangzhou) Aviation Service Limited Co. (AAGASL).
However, in an update issued via its 2Q18 financial results, AirAsia Group said the MOU with Everbright and Henan Government had now lapsed and would not be extended.
Concerning AirAsia Vietnam, AirAsia Group said there had been no further updates on the status of the project which is a joint venture between AirAsia, Gumin Co. Ltd, and Hai Au Aviation's owner, Tran Trong Kien. Under the plan, Hai Au is to be transformed from a specialist seaplane operator into a low-cost carrier.
