We refer to the query raised by Bursa Malaysia Securities Berhad ("Bursa Malaysia") on 18 July 2016 pertaining to an article appearing in The Edge Malaysia on even date entitled "Destini and AirAsia in talks to form JV for US$1bil MRO job".

The Company wishes to inform that after making due enquiry with all the Company's Directors and Tune Air Sdn. Bhd., being the substantial shareholder of the Company, it is not aware of talks on the proposed joint venture mentioned in the said article.

As required under the Main Market Listing Requirements, AirAsia will make the necessary disclosures to Bursa Malaysia on any material transaction or development relating to the Company.

This announcement is dated 19 July 2016.