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Singaporian, Chinese firms to launch joint budget airline
(Xinhua)
Updated: 2004-09-14 21:49

A-Sonic Aerospace, a Singapore-based aircraft and avionics retro-fitting company, has agreed to join hands with two Chinese companies to launch a budget airline in China.

The Singapore company will invest about 5.4 million Singapore dollars (about US$3.19 million) in cash for a 25-percent stake in the joint venture, which will be based in Guangzhou, capital of the southern Chinese province of Guangdong, according to local press reports on Tuesday.

The new venture, which is expected to start operation in the second half of next year, will enable A-Sonic to have exclusive rights to the repair and overhaul, management services and fleet maintenance of the carrier's fleet.

The Singapore company, Guangdong China Travel Service and China Xpress are now applying for an air operator's license from Chinese aviation regulators.

A-Sonic said it will focus on China's domestic market before going regional.

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