AirAsia (AK, Kuala Lumpur International) founder and Group CEO Tony Fernandes has reiterated his company's interest in establishing a presence in the lucrative Chinese market. According to China's Daily News, entry into China is one of the budget carrier's top three priorities for the next three years.

"It will be great if we can find a suitable joint venture partner," said Fernandes was quoted as saying.

In July, AirAsia was linked to exploratory talks with Chinese budget carrier, Spring Airlines (9C, Shanghai Hongqiao), concerning a possible 49/51 venture. Though confirming contact, the Chinese rejected any notion of business collaboration.

Though China's aviation market has seen considerable growth over the last decade, AirAsia says congestion and a lack of slots at key Chinese airports, such as Beijing Capital and Shanghai Pudong, have made it virtually impossible for it to make further inroads in the market.

Given the current status-quo, Fernandes said any future AirAsia China operation would focus on direct flights between Tier II and III cities in China and destinations such as Kuala Lumpur International, Bangkok Don Mueang, and Denpasar, Indonesia.

"The market in the second- and third-tier cities has the potential to grow, especially in the western part of China," he said.