AirAsia signs branding licence agreement with Fly Asian Xpress
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Southeast Asia,
AirAsia
(CAPA) AirAsia and Fly Asian Xpress (FAX) entered a brand licence agreement on 21-Jul-07. Under the agreement, FAX has the right to operate its long haul services under the trade name and livery of AirAsia.
As part of the agreement, AirAsia granted FAX a non-exclusive and non-assignable licence to use the AirAsia brand for the purpose of the Budget Long Haul Services as well as for FAX’s marketing, communication and advertising medium. The use of the brand is confirmed to the budget long haul services only, and not the RAS operations. FAX has proposed that for its long haul services, the brand name to be employed will be AirAsia X.
Under the agreement, FAX agrees not to operate scheduled services covering sectors which are within a four hour flight range from a common point or hub which Air Asia, including subsidiaries and associated companies operating under the AirAsia brand, operates. AirAsia also agrees not to undertake scheduled services of above a four-hour flight range from a common hub which FAX operates.
The agreement is for an initial period of five years, which may be extended for up to five successive terms of five years. AirAsia has agreed to waive the payment of the licensing fee for FAX's first operating year in order to enable FAX to endure the initial start-up challenges of these services. FAX will thereafter pay a fee of USD199, 300 per annum. However, should the gross revenue of FAX exceed USD39.9 million p/a, AirAsia will be entitled to receive 0.5% of FAX’s gross revenue.
Date posted: 24-Jul-07
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AirAsia signs branding licence agreement with Fly Asian Xpress 
