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