AirAsia X Berhad ("AirAsia X" or "the Company") respectfully refers to The Financial Times article “AirAsia denies wrongdoing in dealings with Rolls-Royce” dated 22 January 2017.

AAX have long established good and open business dealings with UK-based Rolls Royce PLC. AAX, its directors and officers have never sought personal favours or gratification from Rolls Royce other than to negotiate for the best possible commercial and financial terms for the benefit of the Company.

With regards to the transaction for the use of the Caterhamjet Global Ltd ("CJG") corporate jet via the Five Year Agreement for Transportation Service with CJG, AAX had gone through the due approval process and obtained approval from its Audit Committee, Board of Directors and recommended to its shareholders for approval under the recurrent related party transactions circular at the respective general meetings held on 5th June 2014, 4th June 2015 and 31st May 2016. The duly obtained shareholders' approvals were subsequently announced to Bursa Malaysia Securities Berhad on the same respective dates.

Prior to the above, the transaction was also disclosed in the prospectus during the initial public offering of AAX.

This announcement is dated 23 January 2017.