Pursuant to the terms of the Agreement for Subscription of Shares, dated 13 September 2007, AirAsia Berhad (“AirAsia” or “the Company”) wishes to announce that it will not exercise the Call Option, which expires on 28 October 2012, and which was granted to it pursuant to the terms of the said agreement. AirAsia is currently holding an investment which is seen as long term and strategic.  AirAsia will focus its resources on its short haul business where there are tremendous opportunities for growth and use the Company’s capital to exploit these opportunities in the Asian region.

This announcement is dated 25 October 2012.