The Board of Directors of AirAsia Aviation Group Limited announced that the Company and its subsidiary, AirAsia Aviation Group Limited (" AAAGL"), had on 27 September 2023 entered into Memorandums of Understanding ("MOUs") with PT Garuda Indonesia (Persero) Tbk ("Garuda") and PT Citilink Indonesia ("Citilink") respectively to collaborate for an extensive partnership that is expected to redefine travel and logistics within the ASEAN region. The Company, AAAGL, Garuda and Citilink shall hereinafter be collectively referred to as the "Parties" and individually referred to as "Party". information on AAAGL.

AAAGL is a wholly owned subsidiary of Capital A incorporated in Federal Territory of Labuan, Malaysia on 11 September 2003. Its registered office is located at Level 5(A), Main Office Tower, Financial Park Labuan Complex, Jalan Merdeka, 87000, Federal Territory of Labuan, Malaysian. AAGL is principally engaged in investment holding activities and is the holding company, under Capital A, for its group of airlines and airline investments portfolio companies.

Dedicated as the national flag carrier airline of Indonesia for more than seven decades, Garuda Indonesia is committed to continuously connecting the archipelago while proudly representing the nation worldwide. PT Citilink Indonesia is a subsidiary of Garuda Indonesia which is based on the Natakusumah Notarial Deed No. 01 dated January 6th, 2009 in Sidoarjo, East Java.

Since May 2011, Citilink Indonesia's flight operations have been managed by Garuda Indonesia's Strategic Business Unit (SBU) which operates under Garuda's AOC and uses the Garuda flight number. SALIENT TERMS OF THE MOU. The MOUs are not legally binding and do not constitute agreements.

The MOUs have no commercial value and are executed by the Parties in good faith. The MOUs provide for collaboration and strategic partnership travel services within the ASEAN region to passengers traveling to Indonesian cities through the combined power of the Company, Garuda and CitILink. RATIONALE FOR THE MOUs.

The interline MOU enables the provision to travelers with unparalleled access to a multitude of underserved third and fourth-tier cities in Indonesia. This marks the first bilateral interline agreement for AAAGL. The partnership will leverage on the depth of the domestic network of Citilink, which includes Palembang, Pontianak, Semarang, Banjarmasin, and Jambi, and the breadth of AAAGL's international routes, which stretch to Hong Kong, Taipei, Tokyo, Seoul, Ho Chi Minh City and more.

Once the infrastructure interline is ready for operations by the first quarter of 2024, travelers would be able to check through baggage from origin to destination, on a single boarding pass, for seamless transfer through integrated services. The interline partnership agreement between Capital A's cargo logistics business under Teleport Everywhere Pte Ltd. ("Teleport") and Garuda's Cargo operation, will allow customers of both Garuda Cargo and Teleport to move their goods across Teleport's network of 160 destinations across Asia Pacific and Garuda's connectivity of more than 90 destinations worldwide seamlessly, under a single airway bill. Teleport will leverage Garuda's strong domestic connectivity as well as added skidded capacity they bring into high-demand sectors, such as Singapore, Shenzhen and Hong Kong bound flights.

While Garuda will tap into Teleport's strong network connectivity across Southeast Asia and Greater China network with extended connectivity into key Asia Pacific cities such as Taipei, Sydney, Auckland and Delhi, among others.