Airlines plan low-cost global network

New Delhi: Airline majors Virgin, AirAsia and EastJet are in discussions to form a Malaysia-based long haul airline joint venture company.

If the pact materialised, the popular budget airlines, including Virgin Express and Virgin Blue of Richard Branson's Virgin group, would offer very low fares.

Branson is in discussions with AirAsia's Tony Fernandes and EasyJet's Stelios Haji-Ioannou to form an alliance to produce what will be the world's first low-cost global network, Malaysian newspaper The Star reported.

Amritsar is one of the first destinations featured on the joint venture along with Kuala Lumpur in Malaysia and Manchester in Britain. There are also plans to fly to Hangzhou near Shanghai and Tianjin near Beijing, PTI quoted industry sources as saying.

Sources said the fares on the long distance flights would be as low as $27 for destinations in China. Fares to Britain from Kuala Lumpur’s Low Cost Terminal will be between $83 and $695.

The Star quoted industry sources as saying that the alliance- if it decides to fly to London as well – could also use the Luton airport as a hub because Virgin already operates a rail link from there to central London.

Industry sources said a combination of the three personalities along with their companies and contacts would be "lethal".

The link-up with Virgin and Easyjet would give AirAsia access to London's Standstead airport.

For Virgin and EasyJet the link up will grant access to Kuala Lumpur's low-cost airport terminal, the gateway to a dream Asian hub for their Europe to Australia via Asia routes, the daily said.