AirAsia says it has no transactions with Rolls-Royce PLC

Low-cost carrier AirAsia Bhd has clarified that it has had no dealings or transactions with UK aircraft engine manufacturer Rolls-Royce PLC.

It was reported that the UK's Serious Fraud Office (SFO) has named AirAsia Group as among foreign parties allegedly involved in bribery cases with the UK aircraft engine maker.

"We wish to state that at all material times, AirAsia has had no dealings or transactions with Rolls-Royce and has no knowledge of any matter mentioned in the article," the airline said in a filing to Bursa Malaysia today.

ON the Bombadier Global Express corporate jet owned by Caterhamjet Global Ltd (CJG), AirAsia said it had already gone through the due process and obtained the necessary approval on the transaction.

"Under the agreement executed for the transaction, AirAsia is required to make an annual contribution of US$3 million per annum for the use of the corporate jet.

"The annual contribution covers the cost of fuel, aircraft engineering and maintenance, route charges, landing fees, parking charges, ground handling charges and security and immigration costs and in return, CJG agreed to provide a minimum of 75 flight hours per month to AirAsia executives," AirAsia said.

Prior to 2015, the use of the corporate jet for the carriage of the group chief executives of AirAsia and AirAsia X Bhd were contracted through AirAsia Asean Ltd.

The costs incurred for the use and upkeep of the aircraft was paid by AirAsia's associate companies such as Thai AirAsia and Indonesia AirAsia, and not AirAsia.

AirAsia has since entered into a sale and purchase agreement to acquire that same corporate jet from CJG on June 21, 2016, as was announced to Bursa Malaysia.

"The completion of the transaction is still pending," AirAsia added. - BERNAMA