AirAsia, Shin Corp. to build no-frills

AirAsia, Shin Corp. to build no-frills

KUALA LUMPUR: Malaysia's budget airline AirAsia will tie-up with Thai telecommunications giant Shin Corp. to form the first no-frills carrier offering services in Thailand by next year, a report said on Tuesday.

Shin Corp., which is controlled by Thai Prime Minister Thaksin Shinawatra's family, will hold a 51 percent stake in AirAsia Aviation, which will have an initial share capital of 400 million baht (US$10 million), AirAsia chief executive Tony Fernandes told the Business Times.

The Malaysian carrier owns the balance but it would "have control over the management" of the joint-venture firm, he said.

"We have identified several potential routes for our launch. These include flights from Bangkok to Chiang Mai, Hat Yai and Phuket, or to China and India," he said, adding that there could also be flights from Bangkok to Penang or Kota Kinabalu in Malaysia.

Fernandes hoped the joint-venture carrier could break even in the first year of operations, based on the fact that Thailand has a huge population of 70 million compared to Malaysia's 25 million.

The alliance marked AirAsia's first regional foray after its establishment two years ago. It is also eying expansion in neighboring Indonesia, southern coastal states of India and Singapore.-- AFP