Malaysia Turns Down AirAsia Airport

January 30, 2009

Malaysia's government has turned down plans from budget carrier AirAsia to build a new airport outside the capital Kuala Lumpur, a source with knowledge of the negotiations said on Friday.

The decision was taken at a meeting of AirAsia chief executive Tony Fernandez and Malaysia's Deputy Prime Minister Najib Razak on Friday.

AirAsia had proposed to build, own and operate the MYR1.6 billion Malaysian ringgit (USD$443.7 million) airport along with conglomerate Sime Darby.

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