AirAsia Group's chief Tony Fernandes has revealed that the company is planning to strike a joint venture in China, as the Malaysia-based low-cost airline seeks to tap into China's booming aviation sector, CNBC reported.    

"I believe there is a strong chance of that happening, so we have to wait and see," Fernandes said during an exclusive interview with CNBC.

Like Us on Facebook

AirAsia's chief executive officer revealed that many interested parties have approached the airline company, but it is still early to know who the company would select as its business partner.

Talking about the Chinese market, the company's CEO said that AirAsia would not be merely interested in ferrying out Chinese tourists out of China. "Everyone looks at just bringing the Chinese out, but we have a dual market where a lot of Southeast Asians are going out to China," he stated.

Fernandes hinted that the airline company would develop new markets and new traffic in China, adding that AirAsia would be flying to newer cities that are unexplored by current airline carriers.                      

Fernandes revealed that presently AirAsia operates flights to 15 Chinese cities, with China contributing about 19 percent to the low-cost carrier's revenue in 2015.    

AirAsia Group's chief also shed light on the company's restructuring plan. He revealed that the airline company would sell off its non-core businesses including its ancillary business.

"I want to simplify the business," Fernandes said on the need to sell some of the none-core businesses.    

The Malaysia-based low-cost carrier is expected to announce strong quarterly results due to low jet fuel prices and strong operating margin.

TagsAirAsia, Tony Fernandes, AirAsia China, airasia flight 8501