Zhengzhou set to host new low-cost airline

Zhengzhou, the capital of Central China's Henan province, will become the headquarters of a joint venture that runs a new low-cost carrier in a few years, official sources said.

AirAsia Berhad has signed a memorandum of understanding with China Everbright Group and Henan province to establish AirAsia (China), a joint venture to operate a new low-budget carrier in China, said Kathleen Tan, president of North Asia with AirAsia.

Zhengzhou is still short of budget airlines, and AirAsia's low-budget carrier will complement the city's transportation capabilities comprising the existing high-speed railway, highway and aviation, according to Tan.