News


Airasia Berhad ("AirAsia" Or "The Company") Status Of Memorandum Of Understanding Between AirAsia And Fly Asian Xpress Sdn. Bhd. [Formerly Known As Eden Hub Sdn. Bhd. ("FAX") ("MOU")]

BackApr 11, 2007

 

Type

Announcement
Subject AIRASIA BERHAD ("AIRASIA" OR "THE COMPANY")
STATUS OF MEMORANDUM OF UNDERSTANDING BETWEEN AIRASIA AND FLY ASIAN XPRESS SDN. BHD. [FORMERLY KNOWN AS EDEN HUB SDN. BHD. ("FAX") ("MOU")]

Contents :

Pursuant to paragraph 9.28 of the Listing Requirements of Bursa Malaysia Securities Berhad, AirAsia is pleased to announce that, in furtherance of the MOU entered into between AirAsia and FAX on 5 January 2007 whereby:


1) AirAsia has granted FAX the right to operate and market its proposed long haul international air services under the "AirAsia" brand name ("License") in consideration of which FAX shall pay AirAsia an appropriate licence fee or royalty; and

2) FAX has invited AirAsia to participate in 20% of the equity of FAX via a capital injection at par value in FAX, with an option (exercisable within 5 years) to increase its shareholding to a maximum of 30% at the then prevailing market valuation,

AirAsia and FAX are working together to finalise the terms of the License as AirAsia continues to closely monitor the latest developments in FAX's proposed budget long haul services. Discussions regarding the appropriate form, timing and amount of investment by AirAsia are on-going. Should the discussions progress positively then the Parties envisage that the relevant agreements will be ready for approvals and execution within six (6) months of the signing of the MOU.

This annoucement is dated 11 April 2007.



Announcement Info

Company Name AIRASIA BERHAD  
Stock Name AIRASIA    
Date Announced 11 Apr 2007  
Category General Announcement
Reference No CM-070411-60231