Type	Announcement
Subject	AIRASIA BERHAD ("AirAsia" or "the Company") Memorandum of Understanding ("Mou") with OnAir Switzerland Sarl ("OnAir")
Contents	PLEASE REFER TO THE ANNOUNCEMENT DETAILS BELOW.

 

1. Introduction

 

Further to our announcement dated 30 December 2008 on the MOU between AirAsia and OnAir, AirAsia wishes to announce that the Company has today entered into a Mobile OnAir Agreement (“Agreement”) with OnAir.

 

OnAir is a Swiss company formed in 2005 to develop and operate inflight passenger communications services. It is owned by SITA, the airline-owned provider of IT solutions and communications services to the air transport industry, and Airbus, one of the world’s leading aircraft manufacturers. OnAir is headquartered in Geneva, Switzerland, and has operations in Seattle, London and Montreal.

 

 

1. Objective

 

The objective of the agreement is for OnAir to install a system on board AirAsia’s aircraft (“System”) which provides inflight telephony services (“Services”) for use by passengers, in AirAsia’s continuing efforts to increase the variety and improve the quality of its services  to passengers as part of its operations in the ordinary course of business.

 

 

1. Salient Terms of the Agreement

 

The salient terms of the Agreement are as follows:

 

a)      OnAir agrees to install the System on certain AirAsia A320 aircraft either on those being assembled or by retrofitting the System on current aircraft in operation.

b)     OnAir is to apply for regulatory approvals in Malaysia, Thailand and Indonesia before the commissioning of the Services in the respective countries.

c)      OnAir will provide the technical support and shall train AirAsia personnel in respect of the System.

d)     AirAsia and OnAir agree to jointly collaborate in the marketing of the Services.

e)      AirAsia and OnAir agree on a revenue sharing formula in respect of the fees for the use of the Services.

f)      The parties agree to review the commercial terms in the third year of the contract and the parties agree the duration of the contract to be for seven years.

 

 

1. Interests of Directors or substantial shareholders and/or persons connected with the Directors and/or substantial shareholders 

 

None of the Directors or substantial shareholders of AirAsia and/or persons connected with the Directors and/or substantial shareholders, has any interest, direct or indirect, in the Agreement.

 

 

5.        Financial effect of the Agreement

 

This Agreement will not create any material financial impact nor will it have any effect on the share capital and substantial shareholders’ shareholdings of AirAsia in the current financial year. It is also not expected to have a material effect on the consolidated net assets of AirAsia and the consolidated earnings of AirAsia for this financial year ending 31^st December 2009.

 

 

1. Document available for inspection

 

The Agreement is available for inspection at the registered office of the Company at 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia during normal business days from Mondays to Fridays (except public holidays) for a period of 3 months from the date of this announcement.

 

 

 

This announcement is dated 27 March 2009.

 

 

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Announcement Info

Company Name	AIRASIA BERHAD
Stock Name	AIRASIA
Date Announced	27 Mar 2009
Category	General Announcement
Reference No	CM-090327-46764