AirAsia Berhad has cancelled its plan to set up an airline in Singapore, citing high costs and weak market potential as the major reasons behind the move. Currently, AirAsia has ventures in the Philippines, Japan, Thailand, and Indonesia, with plans to tap into the growing demand for aviation in Singapore. AirAsia had been keen to establish a unit in Singapore to better compete with rivals such as the Jetstar unit of Australia’s Qantas Airways Limited and Tiger Airways Holdings Limited in which Singapore Airlines holds a 32.7 per cent stake.