AirAsia Berhad (“AirAsia” or “the Company”) wishes to announce that it will not proceed with the proposed Joint Venture with Vietjet Aviation Joint Stock Company (“Vietjet”) entered into on 9th February 2010 following the expiration of the prescribed period to fulfil the various regulatory requirements stipulated under the Share Purchase Agreement and the Shareholders Agreement (“JV Agreements”). Among the conditions under the JV Agreements which remain outstanding to-date include the regulatory approval for Vietjet to employ the AirAsia Brand across its commercial operations.

As those conditions are fundamental for the successful conduct of the business model for the intended joint venture, the Company has decided to allow the Joint Venture to lapse with immediate effect. 

There is no legal and financial impact to the expiry of the JV Agreements.

This announcement is dated 11th day of October 2011.