1.      INTRODUCTION

Further to the announcement dated 29 March 2011 in relation to a joint venture between AirAsia Berhad ("AirAsia" or "the Company") and Expedia Inc., the Company is pleased to announce that it has on 6th June, 2011 incorporated a wholly-owned subsidiary in Singapore known as AirAsia Exp Pte. Ltd. ("AAE") ("the Transaction").

AAE is wholly-owned by AirAsia Go Holiday Sdn Bhd, which is a wholly-owned subsidiary of AirAsia. 

The objective of establishing AAE is that AAE will be the holding company to AirAsia's 50% shareholding in AAE Travel Pte. Ltd. (“JV Co”). The JV Co is a joint venture entity incorporated in Singapore to facilitate the online travel agency business which AirAsia and Expedia Inc. have agreed to set up as mentioned in the said 29 March, 2011 announcement.

2. INFORMATION ON AAE

AAE is a limited liability company. The present issued and paid up share capital of AAE is SGD 1.00.

3. FINANCIAL EFFECTS OF THE TRANSACTION

The Transaction is not expected to have any material effect on the earnings and net tangible assets of the AirAsia group for the financial year ending 31 December 2011.

4. DIRECTOR'S AND/OR SUBSTANTIAL SHAREHOLDERS' AND/OR PERSONS CONNECTED WITH DIRECTORS OR SUBSTANTIAL SHAREHOLDERS' INTEREST.

To the best of the knowledge of the Company, none of the Directors or Substantial Shareholders of the Company and/or persons connected to them has any interest, directly or indirectly, in the above Transaction.

This announcement is dated 7th June, 2011.