The Board of Directors of AirAsia Berhad (“AirAsia” or “the Company”) is pleased to announce that the Company had on 20 June 2011 entered into a joint venture (“JV”) with CAE International Holdings Ltd. (“CAE”) for the purpose of setting up an Aviation Academy providing training services for pilots, cabin crew, engineers, ramp handlers, guest services and aviation management (“Academy”). The JV shall operate through a joint venture company (“JV Company”) under the name of Asian Aviation Centre of Excellence Sdn. Bhd equally owned by AirAsia and CAE.

Please refer to the attachment for further details.

This announcement is dated 20 June 2011.