AirAsia China

[geoff.leo 0]

One can only assume lots of challenges ahead. It's not India but doing business with the mainlanders will always be tough.

 

That said, starting off in relatively (by Chinese standards) quiet Zhengzhou is not a bad move. Having a base in one of the bigger Chinese hubs would be bad for AirAsia, with their massive congestion and horrendous delays. Zhengzhou also isn't a major hub for any of the Chinese carriers and so AirAsia will face less risk of any political backlash. It's location isn't too bad either.

 

Overall, this is one major coup for AirAsia. It's an important breakthrough strategically. As impressive as the air traffic figures are for the China, we're only still scratching the surface. The long-term benefits for AirAsia, if done steadily and carefully, is huge.

 

There are no shortage of foreign airline CEOs who crave for a local Chinese JV or AOC. I suspect many of them will be uttering "HTF did that happen?" today.

[GeO 0]

I wouldn't be suprise if AirAsia put Najib Razak livery on one of their planes. Like they did for Tun M.

[S V Choong 4]

I wouldn't be suprise if AirAsia put Najib Razak livery on one of their planes. Like they did for Tun M.

 

Certianly not in China, where they are carrying out anti-graft and corruption measures... Ah Jib Gor's image will tarnish that effort... bad omen for China.

[flee 5]

I wouldn't be suprise if AirAsia put Najib Razak livery on one of their planes. Like they did for Tun M.

I doubt very much we will see another politician being featured on an Airasia livery anytime soon. Once bitten.....

[flee 5]

AirAsia China: establishing the model for JVs in China's complex aviation market

 

The AirAsia Group plans to establish AirAsia China, a cross border JV, with non airline Chinese partners. The startup will be based in one of China's secondary cities: Zhengzhou, which is not a major point of demand and already has above average LCC representation. But Zhengzhou is eagerly building an aviation hub, and this is critical for AirAsia China to receive government backing for this first in foreign airline JVs of this nature.

Launching in a major Chinese city was not going to happen – from a slot and protectionism view – but Zhengzhou is a start. AirAsia Group CEO Tony Fernandes called AirAsia China "the last piece of the puzzle for AirAsia", but AirAsia's full China aspiration and entering major markets may take more than five, possibly 10, years to materialise.

AirAsia has the distinction of becoming the first pan Asian LCC group to have a China unit. But the announcement of AirAsia China provides a greater reflection on the state of Chinese aviation – layered regulators, hub ambitions, home grown aircraft – and thus is a global case study for how to succeed in Chinese aviation.

As some airlines struggle with mere slots and codeshares, AirAsia will set up a local airline with a foreign (but geographically accurate) brand. AirAsia China will be one of more than a dozen global JV airlines, but the nuances of China mean that AirAsia's announcement is one of the most profound – from a partnership perspective.

Read analysis: https://centreforaviation.com/insights/analysis/airasia-china-establishing-the-model-for-jvs-in-chinas-complex-aviation-market-344587

[JuliusWong 0]

It will be interesting how they are going to compete with the many established local LCC and FSC. The locals are not very keen on foreign competition.......

[flee 5]

They are learning the hard way in India - I am sure their experience there will help them in China . All those with vested interests in India can't wait to see Airasia India close down!

[KK Lee 5]

Operating environment in China is unique and could be brutal. Air Asia China need to tread the line delicately else could end up in a black hole.

 

The real breakthrough will be when Air Asia establish hub outside zhengzhou.

Edited May 24, 2017 by KK Lee

[flee 5]

We shall see if the MoU is executed or scrapped. They have to iron out a lot of details before the MoU can become reality.

[JuliusWong 0]

You don't fly AirAsia to be pampered by the cabin crew anyway...

It is not about being pampered by crew that I am talking about. I am talking about what the crew have to deal with some Mainland Chinese.......

[S V Choong 4]

It is not about being pampered by crew that I am talking about. I am talking about what the crew have to deal with some Mainland Chinese.......

 

Use their own kind to deal with their own kind

[BC Tam 2]

AirAsia’s Fernandes says it’ll be `foolish’ not to consider C919
from: http://www.thestar.com.my/business/business-news/2017/05/26/airasia-fernandes-says-itd-be-foolish-not-to-consider-c919/#UKeco0rICvbrsZ3H.99

 

Go place one of those mega orders for hundreds of the Chinese manufactured birds and you'll be good to go

[S V Choong 4]

AirAsia’s Fernandes says it’ll be `foolish’ not to consider C919

from: http://www.thestar.com.my/business/business-news/2017/05/26/airasia-fernandes-says-itd-be-foolish-not-to-consider-c919/#UKeco0rICvbrsZ3H.99

 

Go place one of those mega orders for hundreds of the Chinese manufactured birds and you'll be good to go

Could be a piece of arse-kissing statement....

[BC Tam 2]

Could be a piece of arse-kissing statement....

Rightly or wrongly, you do realize it is a necessary mean to an end

Imagine the repercussions if the headline had been AirAsia’s Fernandes says it’ll be `foolish’ to consider C919

[S V Choong 4]

Rightly or wrongly, you do realize it is a necessary mean to an end

Imagine the repercussions if the headline had been AirAsia’s Fernandes says it’ll be `foolish’ to consider C919

The repercussions will be... Air Asia will no longer be allowed to fly into China.

[flee 5]

Bursa Malaysia filing:

 

 

The Board of AirAsia wishes to announce that AirAsia Investment Limited (“AAIL”), a wholly-owned subsidiary of AirAsia), had on 13th November 2017 received an approval for the business license from the local government of People’s Republic of China and incorporated a wholly-owned subsidiary known as AirAsia (Guangzhou) Aviation Service Limited Company (“the Subsidiary”).

The expected issued share capital of the Subsidiary is US$1,000,000. The main objective of establishing the Subsidiary is to have an Aviation and Commercial services company in China. The incorporation of the Subsidiary is not expected to have any immediate effect on the issued and paid-up share capital or substantial shareholders’ shareholding in AirAsia.

The establishment of the Subsidiary is also not subject to the approval of shareholders of the Company and any other regulatory authorities in Malaysia.

The formalisation of the incorporation of the Subsidiary including but not limited to opening of all bank accounts and tax filing in People’s Republic of China was completed on 26 December 2017.

This announcement is dated 27th December 2017.

 

[Tamizi Hj Tamby 1]

So that means the Chinese Govt had given a green light to form AirAsia China? Pardon me for asking the question (referring to the press release shared by flee on previous post)

[flee 5]

I think it is just a step towards Airasia China. It is like building the infrastructure to support Airasia China prior to its launch. Meanwhile, it will be supporting the existing Airasia Group and Airasia X Group airlines in China.

[Tamizi Hj Tamby 1]

I think it is just a step towards Airasia China. It is like building the infrastructure to support Airasia China prior to its launch. Meanwhile, it will be supporting the existing Airasia Group and Airasia X Group airlines in China.

Thanks for the clarification flee

[BC Tam 2]

I think it is just a step towards Airasia China. It is like building the infrastructure to support Airasia China prior to its launch. Meanwhile, it will be supporting the existing Airasia Group and Airasia X Group airlines in China.

I have a sneaky feeling it's a step towards Airasia (Guangzhou) for now, with likelihood of Airasia (Shanghai), Airasia (Beijing) etc etc to follow on when they have refined the model for Middle Kingdom

[JuliusWong 0]

The deal has collapsed.

 

https://www.freemalaysiatoday.com/category/nation/2018/08/31/airasias-china-ambitions-suffer-a-blow-after-deal-collapses/?fmt=1

[KK Lee 5]

All major businesses include airlines in china is directly or indirectly controlled by the central government, won't permit disruption by outsider like AK.