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Malaysia Air Asia Cancelled Its China Investment Plan

Well-known Chinese news site Tencent News recently reported that Malaysia’s airline company Air Asia just announced it is cancelling its plan to establish a joint venture airline in Zhengzhou, Henan Province, China. In May 2017, Air Asia signed a deal with the China Everbright Group and the Henan government in Beijing to form the new airline focusing on the low-cost passenger air travel market. Air Asia was committed to investing in infrastructure construction, pilot training, airline crews, and logistics. However, Air Asia’s latest announcement said the signed memo had “expired” and it would not be renewed. The Malaysian airline did not explain the reason. The Malaysia government recently just called off two major infrastructure plans which were to be funded with loans from China. That move was widely considered as a major setback for the Chinese One Belt One Road initiative.

Source: Tencent News, September 1, 2018