Malaysia-based AirAsia aims to set up a Chinese subsidiary with a local partner, Kathleen Tan, newly appointed president for North Asia, said—just six weeks after the group said it was not pursing airline joint ventures. Potential Chinese partners have approached AirAsia, Tan told ATW’s sister publication Aviation Daily. The talks should yield a result soon, but the low-cost airline group cannot reveal what or when, she said. The potential for cutting costs in China is one ...

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