AIRASIA REACHES AGREEMENT WITH MAHB ON PAYMENT OF RM110 MLN DEBTS

KUALA LUMPUR, Nov 4 (Bernama) -- AirAsia and Malaysia Airports Holdings
Berhad (MAHB) have reached an agreement in the payment of airport charges
totalling RM110 million owed by the low-cost carrier, Deputy Transport Minister
Lajim Ukin said.

"Since both parties have reached an agreement, there is no reason for the
government to take any action either against MAHB or AirAsia," he said when
winding up the Supplementary Supply Bill 2009 debate for his ministry at the
Lower House of Parliament Monday.

The amount was owed by AirAsia to MAHB from 2002 to March 31 this year, he
said.

Lajim also rejected claims that AirAsia was engaging in "creative
accounting" to mislead the people or the investing public by making deferred
taxation totalling RM588 million (US$164.2 million) this year.

"For information, the deferred taxation methodology for assets or
liabilities is subject to the financial reporting standard issued by the
Malaysian Accounting Standards Board and in line with the accounting practices
worldwide," he said.

He said AirAsia had confirmed that it had looked into the audit report
prepared by PrinceWaterhouseCoopers and did not discover any reference
pertaining to non-compliance.
-- BERNAMA