Virgin takes 20% stake in FAX; Destination India soon

Putrajaya: AirAsia X has finally got the Malaysian Government’s nod to fly to Australia’s Gold Coast and Avalon besides London on the same day as British billionaire Sir Richard Branson’s Virgin Group inked a deal to pay just over US$6mil for a 20% stake in Fly Asian Xpress Sdn Bhd (FAX).
This puts an end to the over five years of speculation that Branson would invest in AirAsia. Virgin’s entry gives AirAsia X “greater global credibility and visibility across markets”.
FAX will operate Malaysia’s only long-haul low-cost carrier, AirAsia X, that had decided Gold Coast will be its first destination by end-September or early October and the cheapest fare it will offer is RM90.
Apart from the 20% stake sale to Virgin, FAX would sell an additional 20% to AirAsia Bhd and that would mark the first round of fund-raising exercise, capitalising FAX at nearly US$40mil, FAX director Datuk Tony Fernandes told a press conference after FAX and Virgin signed the share sale agreement yesterday.
Apart from the Gold Coast, FAX would fly to Hangzhou and Tianjian in China, and Avalon in Melbourne this year. Early next year, Fernandes said, FAX planned to fly to Amritsar and “we would call it the Punjabi Express.”
Other destinations on its radar screen include Birmingham, Manchester, stations in India, China, the Middle East and the United States. The route to Japan is still being explored.
11/08/07 BK Sidhu/Malaysia Star, Malaysia

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Categories: Foreign Aug 2007, Low Cost General Aug 2007, New Aug 2007