We refer to the following news articles entitled:

1. “No merger of AirAsia’s Aviation business, says Fernandes” featured in The Edge CEO Morning Brief on 6 December 2022; and

2. “Super Plus app set to spur Capital A” featured in The Star Epaper platform on 6 December 2022.

The Company wishes to clarify that the proposed plan is not a merger of AirAsia Berhad and AirAsia X, but a potential disposal of Capital A’s aviation assets to AirAsia X, in order to form a separate publicly-quoted aviation group comprising six airlines — four short haul Asean airlines and two medium-haul airlines, namely AirAsia Berhad, Thai AirAsia, AirAsia Indonesia, AirAsia Philippines, AirAsia X and Thai AirAsia X.

However, the Company also wishes to clarify that the plan remains a work in progress, and will be subject to multiple approvals including by the Company’s Board of Directors, shareholders, and Bursa Malaysia Securities Berhad.

The Company will make the requisite announcement(s) once the plan is finalised.

This announcement is dated 6 December 2022.