AirAsia Berhad (“AirAsia” or “the Company”) had on 31^st October 2007 entered into a Services Agreement (“the Agreement”) with AirAsia X Sdn Bhd (“AAX”).  The purpose of the Company entering into the Agreement is to govern the relationship between the parties pertaining to the list of airline services which are provided by the Company to AAX to support AAX’s Budget Long Haul Service (“the Services”).

The parties had on 28^th November 2008 entered into a Renewal of Fee Schedule Agreement (“the Renewal Agreement”) where the Parties agreed to the revision of the scope and pricing of Services by AirAsia.

AirAsia hereby wishes to announce that it has today entered into:-

(i)      an Amendment Agreement to the Agreement (“Amendment Agreement”) to revise the Renewal Agreement to reflect a reduction in scope of certain Services and the cessation of other Services currently provided under the Renewal Agreement; and

(ii)     a Commercial Services Agreement for Taiwan (“Taiwan Commercial Services Agreement”) with AAX in respect of shared facilities provided by AAX in Taiwan, China, which include airport office rental, utilities, staff payroll and other operational facilities.

Collectively all the Amendment Agreement and the Taiwan Commercial Services Agreement shall be referred to as “the Agreements”.

Please refer to the attachment for further details.

This announcement is dated 13th day of May 2011.