The Board of Directors (“Board”) of AirAsia refers to the:

(a) previous announcement dated 30 October 2017 (Reference No. GA1-30102017-00069) on the Company’s entry into a proposed joint venture with SATS in relation to a ground handling partnership; and

(b) previous announcement dated 4 January 2018 (Reference No. GA1-04012018-00028) in relation to the completion of the share swap agreement between Ground Team Red Holdings Sdn Bhd (“GTRH”) and SATS wherein GTRH acquired 80% equity stake in SATS Ground Services Singapore Pte.Ltd. in exchange for an 11.4% equity stake in GTRH (“Share Swap Agreement”) and the commencement of the transaction to sell and transfer 38.6% of its equity stake in GTRH to SATS for a consideration of Singapore Dollars One Hundred Nineteen Million and Three Hundred Thousand only (SGD119,300,000) in accordance with the terms and conditions set out in the share sale agreement between the Company and SATS (“SSA”).

The Board is pleased to announce the completion of the SSA and that SATS has been entered in the register of members of GTRH in respect of the said 38.6% equity stake in GTRH on 14 February 2018. Pursuant to the transactions contemplated under the Share Swap Agreement and the SSA, SATS and the Company each hold a 50% equity stake in GTRH.

This announcement is dated 14 February 2018.