Richard Branson in talks to buy stake in AirAsia X
The company operating AirAsia X, Malaysia's first long-haul budget airline, could sign a deal as early as next month to sell a 20 percent stake to Virgin Atlantic's chairman, Sir Richard Branson, for $6.9 million, industry officials said Monday.
By Agencies |
KUALA LUMPUR: The company operating AirAsia X, Malaysia's first long-haul budget airline, could sign a deal as early as next month to sell a 20 percent stake to Virgin Atlantic's chairman, Sir Richard Branson, for $6.9 million, industry officials said Monday.
Branson may buy the stake from Tony Fernandes and Kamarudin Meranum, the founders of the company, Fly Asian Express.
The two men own a combined 60 percent of Fly Asian Express, which plans to launch low-cost flights from Malaysia to India, China and Europe later this year.
``We have been in talks and he may take a 20 percent stake,'' one official familiar with the issue told Dow Jones Newswires. ``The talks are continuing though there still are things to iron out,'' he said.
The official declined to be named because of the sensitivity of the negotiations.
Another official said a possible deal could be signed as early as next month and could cost Branson US$6.9 million.
Fernandes and Kamarudin founded Asia's most successful budget airline, AirAsia Bhd.
Fly Asian Express has a 30-year license to use the AirAsia brand and facilities. Its new airline is seen as a test of whether the highly successful low-cost airline model can be profitable on long-haul flights, which are dominated by full-service airlines.
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