For consistency purposes, abbreviations and definitions used throughout this announcement shall have the same meanings as those previously defined in the announcements made by the Company on 11 December 2018, 23 January 2019, 18 July 2019 and 10 September 2019.

Reference is made to the Company’s announcements on 11 December 2018, 23 January 2019, 18 July 2019 and 10 September 2019 on the suit filed by Malaysia Airports (Sepang) Sdn Bhd (“MASSB”), a wholly-owned subsidiary of Malaysia Airport Holdings Berhad, against our wholly-owned subsidiary, AirAsia Berhad ("AAB"), in relation to MASSB’s claim for additional Passenger Services Charges.

As an update, we wish to announce that AAB had on 18 September 2019 paid a sum of RM14,156,818.47 (being the amounts specified in the Garnishee Show Cause Orders dated 23 August 2019) to MASSB to defray the garnishee execution proceedings. The payment was made by AAB without prejudice to AAB’s rights, including AAB’s rights in the appeals made in relation to the judgement order dated 18 July 2019, as well as any connected interlocutory applications.

Further updates in respect of any material development of the matter will be made from time to time in compliance with the requirements of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

This announcement is dated 19 September 2019.