Prime Minister Datuk Seri Najib Razak witnessed the exchange of nine business-to-business (B2B) Memoranda of Understanding and agreements today. (Bernama photo)

BEIJING: Prime Minister Datuk Seri Najib Razak witnessed the exchange of nine business-to-business (B2B) Memoranda of Understanding and agreements today.

The proposed investments of these arrangements were estimated at RM31.26 billion.

AirAsia Berhad exchanged an MoU with China Everbright Group and Henan Government Working Group to establish a low-cost carrier (LCC) in China.

The MoU outlines how the parties will incorporate a joint venture to be known as AirAsia (China) for the purposes of operating a low-cost aviation business based in Zhengzhou, the capital of Henan province in central China.

In addition, AirAsia (China) will invest in aviation infrastructure, including a dedicated LCC terminal at Zhengzhou airport and an aviation academy to train pilots, crew and engineers, as well as maintenance, repair and overhaul (MRO) facilities to service aircraft.

The MoU was exchanged between AirAsia Group CEO Tony Fernandes, Everbright Financial Investment Holding Executive Director and President Wang Weifeng and Henan Airport Group General Manager Li Weidong at China World Hotel here today.

Fernandes said: “We chose Zhengzhou as our base due to its strategic location and importance as a logistics hub. As China’s gateway to Europe, Zhengzhou sits at the centre of a vast rail, highway and air transport network that forms the linchpin of China’s development plans for its central and western regions. With President Xi Jinping’s vision for One Belt, One Road, Zhengzhou is set to become even more important, not least as the heart of low-cost air travel in North Asia.”

AirAsia was the first foreign LCC to enter China and has carried more than 40 million guests since its inaugural route to China in April 2005.

The other MoUs are from various sectors such as construction, agriculture, stock exchange, infrastructure, and port cooperation.

The investment projects in Malaysia include Melaka Gateway in Melaka, Robotic Future City in Johor Baru, and the Methanol and Derivatives Project in Sarawak.

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