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AirAsia Berhad (“AirAsia” or “the Company”) is pleased to announce that it has today entered into it a Memorandum of Agreement (“MOA”) with Sepang Aircraft Engineering Sdn. Bhd. (“SAE”) to provide aircraft maintenance and repair (“MRO”) on AirAisa’s fleet of Airbus A320 and Boeing 737-300 aircraft and other support services.

DETAILS OF THE MRO AGREEMENT

The MOA is a non binding preliminary agreement between AirAsia and SAE and is subject to further contract negotiations as well as SAE meeting all the stringent technical requirements set by the Company when it is ready for its operations.

RATIONALE FOR ENTERING INTO MOA

The Company’s fleet will require maintenance and repair as part of its operation in the ordinary course of business. With this arrangement the Company is looking forward to higher efficiency and further cost reductions.

DIRECTORS AND SUBSTANTIAL SHAREHOLDERS' INTERESTS

None of the directors and/or major shareholders of the Company and persons connected to them, insofar as the existing directors and major shareholders are able to ascertain and are aware, has any interest, direct or indirect in the above-mentioned MOA.

This announcement is dated 22 May, 2007.

Announcement Info