AirAsia enters agreement with Tune Money
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Southeast Asia,
AirAsia,
Tune Money
Acuerdo entre Air Asia y Tune Money
AirAsia is pleased to announce that it has entered (16-Mar-09) into an Information Technology Shared Services Agreement with Tune Money Sdn Bhd (“TMSB”) (the “Agreement”). The purpose of the Agreement is to maximise and optimise the use of the resources, expertise and facilities of AirAsia’s Information Technology Department and as an additional source of recurring income to AirAsia.
TMSB was incorporated on 30-Dec-05 and is principally engaged in business as providers, advisers and consultants on financial services and other related services. TMSB is 44.83% owned by Tune Ventures Sdn Bhd in which both Dato’ Sri Anthony Francis Fernandes and Dato’ Kamarudin Bin Meranun are substantial shareholders.
Salient terms of the Agreement Under the terms of the Agreement, the Company has agreed to provide TMSB a range of information technology services (“Services”) on sharing basis including but not limited to resources, expertise and facilities in exchange for a payment of a Fee. The relevant Fee is based on 25% of the total monthly payroll costs of AirAsia’s Information Technology department and the cost of any shared facilities provided by AirAsia to TMSB by virtue of the Agreement. It is estimated that the Fee payable by TMSB to the Company will be RM100,000 per month. The payment of the Fee shall be on a monthly basis.
The rationale for entering into the Agreement is as follows:
(a) To maximise and optimise the use of the resources, expertise and facilities of AirAsia’s Information Technology Department on sharing basis; (b) TMSB has made several proposals / initiatives whereby AirAsia will be a major beneficiary e.g. Debit Cards; and (c) AirAsia has the capacity to offer the services under the Agreement to TMSB. This will be an additional source of recurring income to AirAsia.
The downside financial risks associated with the provision of Services under the Agreement are expected to be very limited because the Company will not be investing in any specialised or expensive equipment. There will only be a marginal increase in the manpower required to perform the Agreement. In the event the Agreement is terminated for whatever reason and at any point in time, these additional resources can be readily absorbed by the Company’s ever expanding operations. Only under restricted circumstances of non-compliance by AirAsia that AirAsia will be made liable to a maximum sum of the preceding 12 months’ total payroll costs payable by TMSB as required by Bank Negara Malaysia.
Directors’ and major shareholders’ interests Dato’ Sri Anthony Francis Fernandes and Dato’ Kamarudin bin Meranun are directors and major shareholders of the Company. Hence, they are deemed interested in the Agreement. They have abstained from all Board and management deliberations in respect of the Agreement and provision of the services.
This Agreement will not create any material financial impact nor will it have any effect on the share capital and substantial shareholders’ shareholdings of AirAsia in the current financial year. It is also not expected to have a material effect on the consolidated net assets of AirAsia and the consolidated earnings of AirAsia for this financial year ending 31-Dec-09.
(c) Centre for Asia Pacific Aviation. Date posted: 17-Mar-09
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AirAsia enters agreement with Tune Money 
