Contents :

Further to the Share Subscription Agreement between AirAsia Berhad ("AirAsia" or "the Company") and Fly Asian Xpress Sdn. Bhd. (now known as AirAsia X Sdn Bhd or “AAX”) dated 13th September 2007 (“the Agreement”) and to the announcement made on the same date, the Company has on 20th September 2007 made an application to the Foreign Investment Committee (“FIC”) for the Company to subscribe a total of 26,666,667 redeemable convertible preference shares Series 1 (“RCPS”) of RM1-00 each at par in the capital of AAX.

We are pleased to announce that the FIC has notified us on 8th October 2007 vide its letter dated 4th October 2007 that it has no objection to the Company’s proposal to subscribe for the RCPS as described above.


This announcement is dated 9th October, 2007.