Contents :

The Intended Businesses

The intended businesses for the proposed partnership will be:

§ To secure the license to operate a new Vietnamese airline.

§ The new Vietnamese airline will serve both domestic, regional and international routes.

§ The new Vietnamese airline will eventually build two distinct divisions to facilitate i) short haul aviation and ii) long haul aviation.

§ The new airline will be built on the successful low cost model pioneered by AirAsia in this region.

The Parties agree that the new airline shall carry the name “VINA AIRASIA” but AA will retain full proprietary rights to the use of the name “AirAsia”.

Proposed Joint Venture Company

Both parties propose to enter into a partnership to set up a Joint-Venture Company (“JV Co”), the proposed shareholding structure of which shall be in compliance with Vietnamese laws and regulatory requirements.

The respective parties’ contribution to the JV Co is contemplated to be as follows:

Vinashin will assist the JV Co to secure grant of governmental or regulatory approvals (including approvals from the aviation authority), concessions, permissions, licenses, certificates and any other approvals to facilitate operations of the new airline.

AA shall contribute to the JV Co with the following:

§ Assistance to the JV Co in the procurement and acquiring the aircraft at the most competitive price and terms suitable for the low cost airline to be operated by the JV Co

§ Management expertise in the form of aviation and related technical expertise, transfer of technology and know how in areas such as purchasing and leasing of aircraft, engineering and maintenance services, pilot and cabin crew training

§ Airline marketing, distribution, franchising and branding skills

§ Airline management and financial systems, information technology, flight operation and crew management/monitoring

Rationale for entering into the LOI

The LOI sets out the commitment of AirAsia and Vinashin to conduct good faith negotiations towards the execution of the definitve agreement for the purposes contemplated therein. The LOI will expire on 31st December 2007.

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

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 LOI.

This announcement is dated 30th August 2007.