We refer to the query raised by Bursa Malaysia Securities Berhad on 26 August 2016 in relation to an article appearing in The Edge Financial Daily on even date entitled “AirAsia values leasing arm at RM4.1b”.

The Company wishes to clarify that its management is carrying out a strategic review of AAC including the potential divestment of all or a substantial portion of its equity interest in AAC or its business or assets. The strategic review is part of its continual review of its businesses and operations to enhance shareholders value and there is no certainty that it will result in a transaction. The Company will update the market on the strategic review as and when appropriate.

AAC carries out the aircraft leasing business within the AAB group and with third party airlines. Moving forward, its core lessor offerings include: (i) purchase of aircraft from original equipment manufacturers or airlines or lessors and lease to airline customers; (ii) aircraft portfolio trading to enhance asset diversification strategy; and (iii) expansion of sale and leaseback portfolio by access to immediate delivery slots. AAC’s ancillary services offered include maintenance program, spare engine leasing, as well as advisory.

This announcement is dated 26 August 2016.