No-frills carrier AirAsia will invest RM11 million to build a flight simulator centre to train pilots as the company expands services around the region, a report said today.

A multi-purpose two-storey building, with six flight simulators and other computer-based training devices, near the country's international airport will be completed by February, chairman Pahamin Rajab was quoted as saying by Bernama news agency.

The building of the complex reflects AirAsia's rapid growth and success since its beginnings three years ago, he said. AirAsia's pilots were previously trained by the Malaysian Flying Academy.

"We mark the beginning of AirAsia's first simulator complex which is a testament to our dedication to provide quality training and development to our pilots," he said at a groundbreaking ceremony this week.

AirAsia pioneered no-frills travel in the region but faces growing competition from Valuair and Tiger Airways in Singapore, as well as Thailand's Nok Air. Another budget airline by Australian flag carrier Qantas and also based in Singapore is set to take flight later this year.

New opportunities

AirAsia remains unfazed, and is planning to tap new opportunities especially in China's booming market after its initial public offeringwhich is expected to take place in November, officials said.

The airline, which flies to 30 destinations in Malaysia and the region and is targeting new routes to China by year-end, expects to carry about 7.5 million people in 2005, up from some six million this year.

Industry sources said the firm hopes to raise as much as RM1 billion from its IPO, partly to cater for its fleet expansion to 26 next year from the current 18. It now operates only Boeing 737-300s.