A new budget airline is expected to launch this summer, offering cut-price fares between the UK and the Far East, it was announced today.
AirAsia X could start flying between Malaysia and either Manchester or London in July, with tickets expected to be around half the price of full service airlines.
Malaysian aviation tycoon Tony Fernandes' AirAsia carrier will team up with Fly Asian Express (FAX) to fly to destinations in China, India and Europe.
Mr Fernandes said: 'We are proud in being able to continue to lead and revolutionise aviation industry in Asia, just as we did with AirAsia.'
Earlier in the week it had been rumoured that Virgin and easyJet were considering whether to team up with AirAsia to create the world's first budget global network.
Mr Fernandes admitted it planned to tie up with other low-cost carriers, but said talk of a collaboration with Virgin or easyJet was premature. Yesterday Virgin and Easyjet denied that such a tie-up would take place.
The new airline aims to carry 500,000 passengers in its first year and online ticket sales will begin next month for a service to Tianjin and Hangzhou in China, as well as a route to the UK.
If AirAsia X decides to fly to London it is thought it will use Stansted as a base.
Mr Fernandes saved AirAsia from bankruptcy in 2001 and turned it into the region's biggest low-cost airline. He also owns a stake in FAX - a small airline covering remote routes in Malaysia.
Mr Fernandes said: 'Within the next seven years, I am convinced AirAsia will be the largest airline in the world with 50 million passengers a year.'
AirAsia X is the latest airline to operate low-cost services between Europe and the Far East after Oasis Hong Kong began flights to London in October.
Air Asia, which started with two planes, now flies to destinations in South East Asia and China.
AirAsia said today it plans to double its Airbus A320 fleet to 200. The additional 70 aircraft would potentially make the 5-year-old airline one of the biggest fleets in Asia.
