“Tongren Free Travel” AirAsia family adds new member AirAsia (Philippines) joint venture established

AirAsia Philippines, December 18, 2010 - AirAsia announced in the Philippines on December 16, 2010 that AirAsia, in the name of its subsidiary Asia International Limited, has entered into Antonio O. Cojuangco Jr., Michael Romero and Marianne B. Hontiveros, the three company owners, have signed a partnership agreement to establish a low-cost airline in the Philippines along the lines of AirAsia. In the new joint venture, AirAsia International Bhd will hold 40% of the shares, while the remaining 60% will be held equally by the three partners in the Philippines.

The joint venture will be registered in the name of AirAsia International. The company will make full use of AirAsia's resource advantages to develop markets from the Philippines to China, South Korea and Japan, and will increase efforts to enter existing markets. Developed markets such as Singapore, Hong Kong and Taiwan Province. The establishment of the new joint venture will greatly strengthen the development of AirAsia Group in ASEAN, add to the extensive AirAsia shipping network, and open up more new routes and destinations. AirAsia Group CEO Datuk Tony Fenandez said when announcing the cooperation project: The joint venture will bring AirAsia's low-cost shipping concept and model to the Philippines, making it affordable to more Filipinos Start air travel. Therefore, Henan Tourism Network and low-cost airlines will have more opportunities to enter the Philippine market. We believe that, like AirAsia’s outstanding performance and contributions in other countries and regions, this will help boost the Philippines’ economic growth. AirAsia has conducted a feasibility study before embarking on this joint venture project. Based on this research, we are confident that the joint venture will further strengthen AirAsia Group’s existing shipping network and balanced capabilities for market development. Marianne B. Hontiveros, on behalf of three Filipino shareholders, said: The establishment of AirAsia (Philippines) will form healthy business competition in the Philippine shipping market, and air travel will be cheaper for Filipinos. We look forward to providing better services to Filipinos and many businesses will benefit from the influx of tourists. The establishment of AirAsia (Philippines) will help promote the progress and development of various industries, such as tourism, hotels, entertainment and retail. It will also help the Philippines achieve its Millennium Development Plan by 2015. Based on the joint venture agreement, AirAsia will provide technical, business and commercial support to AirAsia Philippines International to ensure that its business, operations, brand building and service products can be unified under the standards of the entire AirAsia. Subject to approvals from relevant government authorities, the joint venture is expected to commence operations in the third quarter of 2011.