Three of the world's best known budget airlines, including Richard Branson's Virgin, will form a Malaysia-based alliance to fly long-distance routes for cut-rate fares.
Branson is in discussions with AirAsia's Tony Fernandes and easyJet's Stelios Haji-Ioannou, a Greek-British tycoon, to form what will be the world's first low-cost global network, Malaysia's Star newspaper reported.
It quoted unidentified industry sources as saying that the new joint venture will first fly between Kuala Lumpur and Manchester in Britain and Amritsar in India.
Later plans are for flights to Hangzhou near Shanghai, China and Tianjin near Beijing. AirAsia spokespeople were not immediately available for comment because of a public holiday in Malaysia.
The newspaper quoted a source familiar with the discussions as saying that fares on the long-haul network will be as low as 100 ringgit ($35) for destinations in China.
Fares to Britain will be between 300 and 2500 ringgit ($105-$880), about half the price of a ticket on a regular airline.
01/01/07 The West Australian
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Monday, January 01, 2007
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The first ever global budget alliance to fly to India
Monday, January 01, 2007
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