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The founders of Malaysia-based low-cost carrier AirAsia plan to set up a new budget airline that will operate long-haul flights, a business weekly reported. The Edge, citing unnamed sources, said the new airline, which would be privately owned, might begin service as early as next year.
AirAsia directors Tony Fernandes and Kamarudin Meranun and their associates are believed to be working on the business plan, which would be presented to the government, the weekly said.
Fernandes and Kamarudin could not be immediately reached for comment. AirAsia currently flies to destinations within the region. One of the routes under consideration is Kuala Lumpur to London, the Edge said.

Copyright Reuters, 2006

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