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Malaysian budget carrier AirAsia has denied discussing aviation business opportunities with Virgin Group or EasyJet, local press reported Monday.

 

AirAsia Chief Executive Officer Tony Fernandes has never engaged in any discussion with Virgin group founder Richard Branson or EasyGroup Chairman Stelios Haji-Ionnou, also founder of EasyJet, the company said in a statement.

 

The statement of denial was issued by AirAsia media relations senior executive Janet Leow Sunday, the New Straits Times (NST) reported Monday.

 

Media reports last week said the three were in discussion to form an alliance to realize a deal that would see the formation of the world's first low-cost global network.

 

Meanwhile, Leow said under a memorandum of understanding signed last Friday between Fly Asian Xpress (FAX), also a Malaysian budget airline, and AirAsia, AirAsia could invest up to 20 percent in FAX.

 

AirAsia also has the option to acquire additional shares in FAX to bring its shareholding to a maximum of 30 percent, exercisable within five years, said Leow.

 

AirAsia shall receive royalty payments in exchange for licensing its brand name to FAX solely for the long-haul operations, but FAX is not allowed to compete with AirAsia's existing destinations within a four-hour flight range, said the statement.

 

On reports stating that Fernandes had a 50 percent stake in FAX, Leow clarified that the AirAsia CEO, who is also a non-executive director of FAX, actually held a 10 percent equity interest in FAX.

 

Kamarudin Meranun, the non-executive chairman of FAX, held 50 percent of the issued and paid-up share capital, instead of 30 percent as reported earlier, according to the NST report.

 

(Xinhua News Agency January 9, 2007)