1.      INTRODUCTION

Further to the announcement dated 21 July 2011 in relation to a joint venture between AirAsia Berhad ("AirAsia" or the Company") and All Nippon Airways Co., Ltd. (“ANA”), the Company is pleased to announce that it has today through its wholly owned subsidiary, AA International Ltd (“AAIL”),  completed the subscription of forty-nine percent (49%) of the paid-up share capital in AirAsia Japan Co., Ltd (“AirAsia Japan”).

The subscription is for two (2) classes of shares as follows; 5,024 voting shares and 4,776 non-voting shares at JPY 50,000 per share.   

AirAsia Japan is a joint venture entity incorporated to establish a low cost airline in Japan which AirAsia and ANA have agreed to set up as mentioned in the aforementioned 21 July 2011 announcement.

2. INFORMATION ON AIRASIA JAPAN

AirAsia Japan is a joint stock company incorporated in Japan on 31 August 2011.  ANA has subscribed an aggregate of 10,200 voting shares at JPY 50,000 per share, representing fifty-one percent (51%) of the paid-up share capital in AirAsia Japan.

The total amount of issued and paid-up share capital of AirAsia Japan following the subscription  by AAIL and ANA is JPY 1,000,000,000. 

3. FINANCIAL EFFECTS OF THE SUBSCRIPTION

The subscription is not expected to have any material effect on the earnings and net tangible assets of the AirAsia group for the financial year ending 31 December 2011. The joint venture is expected to contribute positively to the future profitability of AirAsia.

4. DIRECTOR'S AND/OR SUBSTANTIAL SHAREHOLDERS' AND/OR PERSONS CONNECTED WITH DIRECTORS’ OR SUBSTANTIAL SHAREHOLDERS' INTEREST

To the best of the knowledge of the Company, none of the Directors or Substantial Shareholders of the Company and/or persons connected to them has any interest, directly or indirectly, in the above subscription.

This announcement is dated 1st day of November, 2011.