KUALA LUMPUR (Yosefardi( – AirAsia Berhad has today entered into a brand license agreement with PT Indonesia AirAsia Extra (IAAX), an Indonesian joint venture company of AirAsia X Berhad (AirAsia X), in relation to the use of the brand name, trademark and logos of AirAsia X in Indonesia subject to IAAX obtaining an Air Operator’s License issued by the Indonesia Directorate General of Civil Aviation.
IAAX has already been legally established having successfully obtained both Indonesian Investment Coordinating Board and Indonesian Ministry of Law and Human Rights approvals on 13 August 2013.
IAAX shall engage in low-cost, long-haul transportation services under the AirAsia X brand in Indonesia.
The Agreement will allow IAAX to operate and be visually recognizable in the same manner as AirAsia X within the AirAsia group of airlines thus enlarging AirAsia’s market share across the region. This includes building AirAsia’s brand equity through a new fleet, new routes and customer base.
The use of the AirAsia brand by IAAX can lead to cross-marketing revenue similar to that between AirAsia and AirAsia X (i.e. sales as a result of consumers traveling to Indonesia via IAAX and onwards to other AirAsia destinations).