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Malaysia's AirAsia to commence flights to Xiamen, Shenzhen in China

by Staff Writers
Kuala Lumpur (AFP) Jul 31, 2006
Low-cost carrier AirAsia said Monday it had received the greenlight from Malaysia's transport ministry to ply two destinations in China, and expected to start flights in two to three months.

AirAsia's chief executive officer Tony Fernandes hailed the move, which will see the flights from Kota Kinabalu, AirAsia's hub in Malaysia's eastern Borneo island, to Xiaman and Shenzhen in southern China.

"Now we've got approval from the Malaysian side, we'll get approval from the Chinese side," Fernandes told AFP.

AirAsia Thailand currently flies from Bangkok to Xiamen and Fernandes said he expected dealings with Chinese authorities to be "fairly straightforward".

"Our team is already talking to the airport authorities. We know Xiamen from Bangkok," he said.

The AirAsia chief said the approval, which it received several days ago from the Malaysian government, marked a "big, big day" for the carrier, which currently flies to the southern Chinese territory of Macau from Kuala Lumpur.

"It's exciting for us in that we've waited for a long time to get approval for Chinese routes from Malaysia. China is a big destination with growing numbers of Chinese nationals who want to come to Malaysia," he said.

"This is the first of many route approvals we've been waiting for and it shows the Malaysian government is committed to a level playing field."

Fernandes said the airline had also put in a request to fly to Shenzhen from the Malaysia capital of Kuala Lumpur and was looking at an additional six destinations in China, with a focus on the country's south.

"The more (routes) we get, the more it will have a positive impact on profitability. Many of these routes are routes we wanted for a long time," he said.

Malaysia's transport minister Chan Kong Choy earlier Monday announced the government had given approval to operate to Xiamen and Shenzhen, the state news agency Bernama reported.

Southeast Asia's most profitable budget carrier said earlier this year it was looking to enter the booming markets of China and India.

AirAsia was launched as a budget carrier in December 2001 with just two aircraft. It offers more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.

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Trade complacency in China a growing concern: US official
Beijing (AFP) Jul 31, 2006
China risks moving backwards on trade liberalization as growing complacency could slow down reform in key sectors, a top US commerce official warned Monday.







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