No-frills airline AirAsia said today it will later this week unveil its mystery foreign partners who will inject capital to enable the profit-making carrier to expand.

AirAsia said it will also sign an agreement with the new shareholders on the same day.

Kamarudin Meranun, AirAsia's executive director, told AFP the success in getting the three shareholders, who will be unveiled on Friday, was a major milestone for AirAsia.

"It is a recognition for AirAsia. It also shows the confidence foreigners have in Malaysia's business climate and in particularly to invest in an industry that is regarded as a taboo to most businessmen," he said.

Buying new planes

AirAsia chief executive Tony Fernandes said last month that three foreign partners would take up a stake in the carrier.

Fernandes said the capital injection, which he puts at about RM50 million, by the foreign partners will help finance AirAsia's purchase of four Boeing 737-300 aircraft.

Three foreign partners consisting of an Asian, Middle East and European would be coming onboard with their capital, a company official had said.

The official, who spoke on condition of anonymity, said the three new strategic players would take about a 25 percent stake in the 19-month old airline.

Five individuals currently control the company which has 500 employees, with Fernandes holding a 25 percent stake.

New destinations

AirAsia plans to increase its fleet by eight to 15 by this year. Half of the new aircraft would be leased.

The fleet expansion is needed to serve new destinations, including southern Johor state and Sarawak's oil rich town of Bintulu on Borneo island.

From January to April this year, AirAsia carried a total of 525,142 passengers, up from 231,839 passengers for the same period last year. It said 40 percent of its ticket sales worth 50 million ringgit were bought over the Internet.

Fernandes recently said that while airlines were struggling globally and pursuing cost cuts, AirAsia would continue with its route and fleet expansion. - AFP