AirAsia Bhd, Asia's largest budget airline, said it has dropped plans for a joint venture to establish a low-cost carrier in China, in a setback for its plans to expand in the world's second-biggest aviation market. The Malaysian airline had signed a preliminary agreement last year with Chinese state-backed financial firm Everbright Group and Henan province to set up a low-cost aviation base in Zhengzhou. But in a statement on Thursday, AirAsia said the memorandum of understanding with Everbright and Henan government had lapsed and "will not be extended". It did not say why. (chinapress, travelnews)