AIRASIA: SUPPLEMENTAL AGREEMENT TO THE COLLABORATION AGREEMENT BETWEEN THE COMPANY, MALAYS

Reference No MM-120502-68970

Type : Announcement

Subject : OTHERS

Description : AIRASIA BERHAD ("AIRASIA" OR "COMPANY")(I) SUPPLEMENTAL AGREEMENT TO THE COLLABORATION AGREEMENT BETWEEN THE COMPANY, MALAYSIAN AIRLINE SYSTEM BERHAD ("MAS") AND AIRASIA X SDN BHD ("AAX") ("SUPPLEMENTAL AGREEMENT");

(II) NEW MEMORANDUMS OF UNDERSTANDING WITH MAS AND AAX ("MOU"); AND

(III) TERMINATION OF THE PROPOSED WARRANTS EXCHANGE EXERCISE WITH MAS ("PROPOSED WARRANTS EXCHANGE").

Attachments : AirAsia - Announcement.pdf

Announcement Details/Table Section : On behalf of AirAsia, we wish to announce that the Company has today, 2 May 2012:

(i) entered into a Supplemental Agreement to vary the terms and scope of the Collaboration Agreement;

(ii) pursuant to the Supplemental Agreement, AirAsia has separately entered into memorandums of understanding in respect of the following:

(a) to jointly explore the setting up of the joint-venture company by AirAsia, MAS and AAX to provide aircraft component maintenance support and repair services;

(b) to establish the broad set of business principles for the proposed establishment of a special purpose vehicle by AirAsia, MAS and AAX to improve value for money and increase competitiveness and benefits to customers through procurement synergies by outsourcing to the SPV the procurement processes for identified goods and services in agreed categories; and

(iii) in view of the Termination of Share Swap, the Board of Directors of AirAsia has agreed to mutually terminate the Proposed Warrants Exchange and the warrants exchange agreement entered into between the Company and MAS on 21 October 2011.

Please refer to the attachment for further details.

This announcement is dated 2 May 2012.

Refer to full documentation in attachments box, located at the top left, below the headline.