KUALA LUMPUR (April 7): AirAsia Group Bhd, Southeast Asia's largest low-cost airline, has established a new entity within the group to provide consulting services on setting up a low-cost carrier (LCC), according to sources.
Called AirAsia Consulting Sdn Bhd, the new entity will provide consulting services to interested parties who wish to set up a new LCC under a new brand, which will be franchised out by AirAsia, sources told theedgemarkets.com.
AirAsia is currently working with a potential client who is interested in the franchise model, they added.
The group has appointed Subashini Silvadas to head the new entity as its chief executive officer.
It is understood that she has also been tasked to help the carrier to set up AirAsia Cambodia operations in Phnom Penh.
In the group’s financial results for the third quarter ended Sept 30, 2020 released last November, AirAsia Group president for airlines Bo Lingam stated that the carrier was "actively exploring opportunities for a local airline presence in IndoChina".
A new carrier, if created, would be the group’s fifth unit in Asia — after the ones in Malaysia, Indonesia, Thailand and the Philippines.
Last year, AirAsia had shuttered its operations in Japan. It also sold 32.67% of the 49% stake it held in AirAsia (India) Ltd to Tata Group for US$37.66 million. As part of the transaction, there will be a call option in respect of the remaining 16.33% stake, exercisable by Tata at any time after the transaction is completed.
AirAsia shares closed up 3 sen or 3% at RM1.03 today, bringing a market capitalisation of RM3.91 billion.