AirAsia Berhad has moved closer to setting up an aviation company in China.
AirAsia Investment Limited has received approval for the business licence from the local government of the People’s Republic of China and incorporated a wholly-owned subsidiary called AirAsia (Guangzhou) Aviation Services Limited Company.
In an announcement to Malaysia’s Bursa stock exchange, the company said the main objective of establishing the subsidiary is to have an aviation and commercial services company in China. AirAsia (Guangzhou) has an expected issue share capital of US$1,000,000.
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, and it 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 was completed on 26 December 2017.
Last summer a Memorandum of Understanding (MoU) was signed between AirAsia Berhad, the China Everbright Group and Henan Government Working Group to set up a JV to be known as AirAsia (China) to establish a low-fare aviation business based in Zhengzhou, the capital of Henan province in central China.