Contents :

We refer to Bursa Malaysia’s letter dated 15 November 2006 on the above subject-matter.

We wish to clarify that on 14 November 2006, the AirAsia family of airlines, namely AirAsia Berhad, Thai AirAsia Co. Ltd. and P.T. Indonesia AirAsia had respectively entered into Participating Carrier Agreements with Amadeus IT Group, S.A. (Amadeus) for access to all Amadeus travel agents and corporate customers across the globe to book seats on all the three carriers.

Fly Asian Xpress Sdn Bhd (FAX), the provider of rural air services in East Malaysia, had also entered into a separate but similar Participating Carrier Agreement with Amadeus on the same day.

By becoming participating carriers, AirAsia will enable to display their full flight inventory (all the seats available on all flights in the extensive route network being served by AirAsia group) on all Amadeus desktops used by travel agents and corporate customers worldwide without having to log on to AirAsia’s website (www.airasia.com). Similarly, the same exposure will be availed to FAX.

AirAsia and FAX will also be interlining their operations as part of a concerted effort to promote air travel and tourism in cities, towns and districts in East Malaysia and other parts of the country. Initially for Kuala Lumpur-Mulu and Kuala Lumpur-Lahad Datu sectors, this will be gradually rolled out and later expanded to cover the entire network of AirAsia and FAX. Interlining is a common arrangement in the ordinary course of business between two or more airlines for the convenience of those passengers who need to use the services of both airlines.

Query Letter Contents :

We refer to the above news article appearing in The New Straits Times, Biznews,
Page 58, Wednesday, 15 November 2006, a copy of which is enclosed for your
reference.
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article after due and diligent
enquiry with all the directors, major shareholders and all such persons
reasonably familiar with the matter about which the disclosure is to be made in
this respect. In the event you deny the above article or any other part of the
above reported article, you are required to set forth facts sufficient to
clarify any misleading aspects of the same. In the event you confirm the above
article or any other part of the above reported article, you are required to
set forth facts sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully


TAN YEW ENG
Head, Issuers
Listing Division
Group Regulations
TYE/NZ
Copy to: Securities Commission (via fax)

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