Air Asia China will be based in Zhengzhou, a major transport hub roughly midway between Beijing and Shanghai and around 250 miles inland.
The decision follows an agreement between Air Asia and the state-owned China Everbright Group, a finance company that is also a major shareholder in an aircraft leasing company. The Henan province government is also involved.
Air Asia was the first foreign low cost carrier into China, more than a decade ago, and its long-haul sister brand Air Asia X currently offers 15 destinations there. The deal in China follows similar partnerships in Vietnam, Indonesia and the Philippines plus more established ventures in Thailand and Japan.
Air Asia chief executive Tony Fernandes told the BBC that China “represents the final piece of the Air Asia puzzle”.
