Preliminary Discussions between AirAsia Berhad ("AirAsia" Or "The Company") And Jetstar Airways Pty Limited ("Jetstar")

BackJan 06, 2010
Type Announcement
Subject Preliminary Discussions between AirAsia Berhad (“AirAsia” or “the Company”) and Jetstar Airways Pty Limited (“Jetstar”)
Contents With reference to the press conference today, AirAsia wishes to announce that AirAsia and Jetstar are in discussions to investigate the desirability and feasibility of forming a possible collaboration to find new and innovative ways to reduce costs, pool expertise and drive efficiencies to ultimately result in cheaper fares for both carriers.

The areas which the parties intend to develop a cooperation on include:

• Future fleet specification – both carriers will investigate opportunities for joint procurement for the next generation of narrow body aircraft to achieve cost reductions in terms of order volume and influencing design specification to deliver more efficient low cost operations;

• Airport Passenger and Ramp Handling services – to develop cooperative arrangements for the provision of passenger and ground handling arrangements in Australia and within Asia at overlapping airports by leveraging scale of both carriers;

• Shared Aircraft Parts and ‘Pooling’ - pooling inventory arrangements for aircraft components and spare parts;

• Joint Procurement – Joint procurement with a focus on engineering and maintenance supplies and services; and

• Passenger Disruption Arrangements – Reciprocal arrangements for passenger management (i.e. support for passenger disruptions and recovery onto the other airline’s service) across both AirAsia and Jetstar networks.

These discussions are at a preliminary stage where the parties are investigating the feasibility of developing areas of cooperation and as such and no binding agreements have yet to be entered into. However, AirAsia will update in a timely manner whenever any material event arises and to ensure continued compliance with Bursa Malaysia Main Market Listing Requirements.

This announcement is dated 6th January 2010.



Announcement Info

Stock Name AIRASIA    
Date Announced 6 Jan 2010  
Category General Announcement
Reference No CMC-100106-2CD75