Low-fare carrier AirAsia has appointed Credit Suisse First Boston (CSFB) and RHB Sakura Merchant Merchant Bankers (RHB) as the bookrunners for its initial public offering (IPO) to fund its ambitious expansion plan, a report said today.

"The IPO strengthens our balance sheet, further cuts down existing low costs and accelerates our growth plans," Kamarudin Meranun, AirAsia's executive director was quoted as saying by the Malay Mail newspaper.

Kamarudin said both CSFB and RHB have been strong supporters of AirAsia and "we are pleased to work with them on this landmark event."

The IPO is expected to be launched in September. AirAsia plans to invest RM228 million as it builds up its fleet to 30 aircraft by year's end from the current 14, the Financial Daily reported recently.

The two-year-old Malaysian company has become Southeast Asia's version of European budget carrier Ryanair.

From its humble beginning with just two Boeing 737-300 jets in 2001 plying Malaysia's domestic routes, AirAsia has expanded at a furious pace.

AirAsia has carried over 3.6 million passengers since it was launched in December 2001. - AFP