AirAsia is to open talks with low-cost rival Malindo Airways which aims to start its own low cost operations in Malaysia in May 2013, according to a report in the country's Business Times.
The report said that AirAsia chief Tony Fernandes is seeking some kind of partnership with the potential rival as the margins in operating budget carriers in Asia are squeezed.
Malindo, backed by the National Aerospace and Defence Industries and Lion Air, plans to operate using Sepang Airport as a base.
Fernandes had previously sought a partnership with Malaysia Airlines, which would have seen him taking a stake in the national carrier, but the deal was called off.
Gravity always wins!