Malaysia's budget airline AirAsia is in discussions to form the world's first low-cost global air network with Britain's Virgin and easyJet, DPA QUOTED a company official as saying Tuesday. Talks have begun to form an alliance that would result in long-haul, low-cost flights, the AirAsia spokeswoman said on the condition of anonymity. "The discussions aren't finalized yet, so we'll have to wait for an official announcement before we can give details," she said. AirAsia was expected to make an "important announcement" by Friday, fuelling speculation that statements would be made regarding its long-haul plans, the Star daily reported Monday. The proposed venture would be the world's first low-cost global network and would first fly between Kuala Lumpur and Manchester in Britain and Amritsar in India, the report said. The Star, however, quoted Tony Fernandes, the head of Air Asia, as saying that his airline, the region's most successful and largest no-frills airline, is currently focused on short-haul services, "where we have much work to do." The newspaper quoted a source familiar with the discussions as saying that fares on the long-haul network would be as low as 100 ringgit (27 dollars) for destinations in China. Fares to Britain would start from 300 ringgit. The source was quoted as saying a link-up between the airlines would be "lethal," referring to the extent of the trio's contacts and company worth. AirAsia, which started in 2001 with two planes, now has a fleet of 50 aircraft and flies to destinations in South-East Asia and China. Virgin Atlantic's network covers the United States, Hong Kong, South Africa, the Caribbean and Australia. EasyJet, which started in 1995, was one of the first low-cost carriers in the world to sell tickets on the Internet.
