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BackJan 23, 2017
Type Announcement
Subject OTHERS
Description

AIRASIA BERHAD ("AIRASIA" OR "THE COMPANY") - Clarification on Article Appearing in The Financial Times dated 22 January 2017

AirAsia Berhad ("AirAsia" or "the Company") respectfully refers to the article appearing in The Financial Times dated 22 January 2017 entitled "AirAsia denies wrongdoing in dealings with Rolls-Royce". We wish to state that at all material times, AirAsia has had no dealings or transactions with Rolls-Royce and has no knowledge of any matter mentioned in the article.

In respect of the Bombadier Global Express corporate jet owned by Caterhamjet Global Ltd ("CJG") mentioned in the article, we wish to advise that AirAsia had already gone through the due process and obtained the necessary approval on the transaction from the Company's Audit Committee (“the transaction”), its Board of Directors and recommended to its shareholders for approval under the recurrent related party transactions circular at the respective  general meetings held on 3rd June 2015 and 30th May 2016.  The duly obtained shareholders' approvals were subsequently announced to Bursa Malaysia Securities Berhad (“Bursa Malaysia”) on the same respective dates.

Under the agreement executed for the transaction, AirAsia is required to make an annual contribution of US$3 million per annum for the use of the corporate jet. The annual contribution covers the cost of fuel, aircraft engineering and maintenance, route charges, landing fees, parking charges, ground handling charges and security and immigration costs and in return, CJG agreed to provide a minimum of 75 flight hours per month to AirAsia executives.

Prior to 2015, the use of the corporate jet for the carriage of the Group Chief Executives of AirAsia and AirAsia X Berhad were contracted through AirAsia Asean Limited, and the costs incurred for the use and upkeep of the aircraft was paid by the Company's associate companies such as Thai AirAsia and Indonesia AirAsia, and not AirAsia.

AirAsia has since entered into a Sale and Purchase Agreement to acquire that same corporate jet from CJG on 21 June 2016 as was announced to Bursa Malaysia. The completion of the transaction is still pending.

 

This announcement is dated 23 January 2017.





Announcement Info

Company Name AIRASIA BERHAD
Stock Name AIRASIA
Date Announced 23 Jan 2017
Category General Announcement for PLC
Reference Number GA1-23012017-00130