AirAsia moves closer to setting up China JV airline

China factor: AirAsia (China) will be established either through an acquisition or by obtaining a new airline licence. — Reuters

KUALA LUMPUR: AirAsia Bhd is moving closer to setting up a joint venture (JV) budget airline in China, having entered into a non-binding term sheet with China Everbright Group and two other companies last Friday.

In an announcement to Bursa Malaysia, the low-cost carrier said the term sheet, whose signatories included Singapore-based Plato Capital Ltd and Oxley Capital Ltd, intended to confirm the parties’ interest in forming the JV and contained supplementary information to an earlier memorandum of understanding (MoU).