Virgin, AirAsia, EasyJet to set up global budget airlines network
Kuala Lumpur: Global budget airlines including Virgin Airlines, AirAsia and EasyJet plan to form a global alliance based in Malaysia to fly long-haul routes, a report has said.

An announcement is expected to be made later this week by the Malaysian government and AirAsia officials.

According to sources Malaysian airline AirAsia's expansion plans are designed to ensure that Malaysia becomes the low cost hub for the region. Neighbouring rival Singapore is also competing for the spot.

The report in the Star daily said the new joint venture would first fly between Kuala Lumpur and Manchester in Britain and Amritsar in India.

There are future plans for flights to Hangzhou near Shanghai, China and Tianjin near Beijing, it said. A source familiar with the discussions said fares on the long-haul network for destinations in China could be as low as 100 ringgit ($28).

Fares to Britain will be between 300 ringgit and 2,500 ringgit, about half the price of the normal ticket on a regular airline.
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Industrial and Commercial Bank of China acquires Indonesian bank
Beijing: China's largest bank, the Industrial and Commercial Bank of China (ICBC) will acquire a 90 per cent stake in Indonesian lender Bank Halim.

The remaining 10-per cent stake will continue to be held by shareholders of Bank Halim, and the ICBC has the option to buy it in three years. This is the first time ICBC has taken over a foreign bank, and is also the first time for the bank to enter an overseas market via acquisition.

The two banks have to wait for permission from their respective regulatory authorities before they can finalise the deal. On October 27, the ICBC was listed on the Hong Kong and Shanghai bourses at the same time, registering the biggest ever initial public offering in the world by raising $21.9 billion.

Bank Halim had $50 million of assets by the end of 2005, with a capital adequacy rate of 57.88 per cent and non-performing loan rate of 1.32 per cent, according to a release.
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