British billionaire Richard Branson's Virgin Group has taken a 20 percent stake in a new Malaysian airline that has ambitions to become the world's top long-haul budget carrier. Branson and AirAsia X, founded by former Virgin executive Tony Fernandes, did not immediately give a price for the deal, which is rumored to be tiny, but the real value of the transaction is in the longer-term alliance of the two businesses.

AirAsia X has rights to fly to Stansted airport, a major UK hub for European low-cost flights, as well as to Australia's Gold Coast tourist mecca and to Avalon airport near Melbourne. The Australian flights are due to begin by the end of next month.