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AirAsia is pleased to announce that it has today entered into it a Memorandum of Understanding (“MOU”) with OnAir Switzerland Sarl (“OnAir”) to provide Inflight GSM/GPRS Services (“Passenger Services”) on AirAsia’s fleet of Airbus A320.
Details of the MOU

The MOU sets out the commitment of AirAsia and OnAir to conduct good faith negotiations towards the execution of a definitive agreement for the purposes contemplated therein.

The execution of the Agreement is subject to the Board approvals of AirAsia and OnAir and is further subject to both parties obtaining the necessary regulatory approvals.

Rationale for entering into the MOU

The Passenger Services will enable passengers on-board AirAsia Aircraft to use mobile phones and smartphones to make and receive voice calls, send and receive text messages and access email during a flight. The voice, SMS and GPRS based services will be supported via an international roaming arrangement with OnAir’s mobile telecommunications service provider.

The introduction of the Passenger Services is part of AirAsia’s continuing efforts to increase and enhance its service offerings to passengers as part of its operations in the ordinary course of business.

Directors and Substantial Shareholders’ Interests

None of the directors and/or major shareholders of the Company and persons connected to them, insofar as the existing directors and major shareholders are able to ascertain and are aware, has any interest, direct or indirect in the above-mentioned MOU.

This announcement is dated 20th June, 2007.