AirAsia enters MoU with OnAir covering infight telephony services

The objective of the agreement is for OnAir to install a system on board AirAsia’s aircraft which provides inflight telephony services (“Services”) for use by passengers, in AirAsia’s continuing efforts to increase the variety and improve the quality of its services  to passengers as part of its operations in the ordinary course of business.


The salient terms of the Agreement are as follows:
a)      OnAir agrees to install the System on certain AirAsia A320 aircraft either on those being assembled or by retrofitting the System on current aircraft in operation.
b)    OnAir is to apply for regulatory approvals in Malaysia, Thailand and Indonesia before the commissioning of the Services in the respective countries.
c)      OnAir will provide the technical support and shall train AirAsia personnel in respect of the System.
d)     AirAsia and OnAir agree to jointly collaborate in the marketing of the Services.
e)      AirAsia and OnAir agree on a revenue sharing formula in respect of the fees for the use of the Services.
f)      The parties agree to review the commercial terms in the third year of the contract and the parties agree the duration of the contract to be for seven years.


(C) Centre for Asia Pacific Aviation. Date posted: 30-Mar-09


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