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Jan 2007

Amritsar-Malaysia direct Virgin flight

     Edinburgh: Amritsar, Shanghai and Beijing are soon expected to come closer to Malaysia, as AirAsia, tipped to be the first global budget airline network, has proposed new direct flights on the three routes. AirAsia is understood to be discussing possible funding from Virgin Atlantic, Asia's leading low-cost carrier, for the venture which would also connect the Malaysian-based airline's extensive Asian network to Europe. The first routes could include Manchester-Kuala Lumpur, with fares starting at 43 pounds or some 200 pounds for round trip, including taxes. There could also be flights from Luton, reported The Scotsman. Other possible links from AirAsia's main hub may be to Amritsar in India, and to Hangzhou near Shanghai, and Tianjin, near Beijing, in China. AirAsia's chief executive Tony Fernandes is believed to have held talks with Virgin Atlantic chairman Sir Richard Branson. He is also understood to have held discussions with fellow airline entrepreneur Stelios Haji-Ioannou, the founder of EasyJet, although a spokesman yesterday denied the company was involved, said the paper. Haji-Ioannou, who has launched a series of companies under the "easy" brand, remains a major shareholder of EasyJet, but has scaled back his involvement to that of non-executive director. AirAsia plans included fares to Britain of between 43 pounds and 365 pounds. With taxes and charges, the cost of the cheapest return seats would rise above 200 pounds, although this would still be cheaper than regular carriers. It is believed that Virgin may be keen to invest because of the venture's growth potential. However, the airline does not see AirAsia as a rival because it does not fly to the same airports. Its routes in Asia include to Hong Kong, Shanghai, Singapore and Delhi. AirAsia operates 49 aircraft from its six main bases in Malaysia, Indonesia and Thailand, using medium-size aircraft similar to those of EasyJet. The plan is understood to "feed" passengers on its 48-destination network into the new long-haul services at its main Kuala Lumpur base.
-Jan 2, 2007