AirAsia forms joint venture with Expedia
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AirAsia and Expedia Inc today announced the launch of a new joint venture company intended to offer a complete range of flights, hotels, and holiday packages in the Asia Pacific region.
The deal, which marks the first partnership of its kind between a low-cost carrier (LCC) and an online travel agent (OTA), will see the formation of a new company to operate Expedia Inc’s Expedia-branded businesses in Japan, India, Southeast Asia and other East Asian markets, as well as AirAsia’s AirAsiaGo and GoRooms businesses.
The new venture will have exclusive online third-party distribution rights in the region for AirAsia and AirAsiaX flights and travel packages, meaning that Expedia will be virtually the only place customers will be able to find and book AirAsia and AirAsia X products in the region, other than the LCC’s own websites. The AirAsia offerings will them be able to be combined with Expedia’s more than 130,000 hotels worldwide, to create a set of packages for Asian customers on both the AirAsiaGo and Expedia sites.
In addition, AirAsia and Expedia are partnering outside of the new venture to make Expedia the exclusive third party travel provider for the LCC’s inventory, allowing travellers to book AirAsia inventory on any of Expedia’s travel sites worldwide.
Dr Tony Fernandes, AirAsia’s Group CEO, said; “With this announcement AirAsia and Expedia are launching a revolution in online travel for Asia. This partnership between two global brands and leaders in the travel industry comes at a time when online travel bookings are exploding in the region. Asia, and its booming economy, offers a huge opportunity to develop a set of loved consumer brands.
“We are excited to have Expedia as our partner and are proud to welcome them to Asia. We’ve taken our time to find a great partner that understands Asia and matches our drive, passion and aspiration. AirAsia has made it possible for everyone to fly. Through this partnership with Expedia we hope to share the same experience we’ve shared with others and take our unique travel and brand experience further, farther and wider,” Fernandes said.
Barry Diller, Chairman & Senior Executive of Expedia Inc, added; “By partnering with AirAsia, Expedia is taking an important step in developing our global position. This is particularly exciting, given Asia’s influence in the online travel marketplace.
“We couldn’t have found a better partner than AirAsia. In addition to being the region’s leading low cost carrier, the airline also shares Expedia’s aspiration to make travel accessible to everyone. I’m deeply impressed by AirAsia’s growth in such a short period of time, and its amazing network.
“There is a lot of focus on travel in Asia today and this collaboration allows our customers to connect to a great network here via AirAsia. Combined with Expedia’s impressive selection of global travel offerings and package technology, we think this partnership enables both companies to offer travellers world-class travel products at an unparalleled value,” Diller concluded.
To celebrate the new venture, www.AirAsiaGo.com will be offering hotel discounts of up to 80% in 10 Asian cities for three days from 29 March, and Expedia will be launching its new Malaysian site www.expedia.com.my and Thai site www.expedia.co.th with a two-week sale period offering discounts of up to 60% on Southeast Asian destinations.
AirAsia’s branded website’s www.airasiago.com and www.gorooms.com and Expedia’s existing branded businesses in Japan (www.expedia.co.jp), India (www.expedia.co.in) and Singapore (www.expedia.com.sg), along with new markets launched in Malaysia (www.expedia.com.my) and Thailand (www.expedia.co.th) will be operated by the joint venture.
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