Joint Venture of AirAsia and Expedia to Power Online Travel Revolution in Asia

SINGAPORE, March 29, 2011 /PRNewswire/ --

- First partnership of its kind globally between a low-cost carrier and an online travel agency

AirAsia, the world's best low cost airline and Expedia, Inc., the world's largest online travel company, today announced the launch of a new joint venture company covering Asia Pacific and offering a complete range of great value flights, hotels, and holiday packages.

(Logo: http://photos.prnewswire.com/prnh/20110121/SF33870LOGO-b)

This is the first partnership of its kind globally between a low cost carrier (LCC) and an online travel agent (OTA). This "marriage made in heaven" between the world's largest online travel company, and the world's most innovative airline, allows both companies to build on each other's strength in bringing happiness through travel to the world's travellers.

Under the joint venture agreement, a new company will be formed to operate Expedia, Inc.'s Expedia(R) branded businesses in Japan, India, Southeast Asia and other East Asian markets, as well as AirAsia's AirAsiaGo and GoRooms businesses. The new venture will build on AirAsia's unique local marketing expertise, along with Expedia's world leading technology, and both companies' quality travel products in the region and beyond.

The new venture will have the exclusive online third-party distribution rights in the region for AirAsia and AirAsiaX flights and travel packages meaning that with few exceptions in the region the only place to find and book AirAsia flights online will be AirAsia.com, AirAsiaGo.com and Expedia. Taken together with over 130,000 hotels worldwide, this will create a unique set of packages for Asian customers at incredibly low rates on both the AirAsiaGo and Expedia sites.

In addition, AirAsia (AirAsia Malaysia, AirAsia Indonesia, AirAsia Thailand, AirAsiaX and other AirAsia joint venture airlines) and Expedia are partnering outside of the new venture to make Expedia the exclusive third party travel provider for AirAsia inventory allowing travellers to book exciting AirAsia inventory on any of Expedia's travel sites worldwide.

Dato' Sri Dr. Tony Fernandes, Group CEO, AirAsia, said, "With this announcement AirAsia and Expedia are launching a revolution in online travel for Asia. This partnership between two global brands and leaders in the travel industry comes at a time when online travel bookings are exploding in the region. Asia, and its booming economy, offers a huge opportunity to develop a set of loved consumer brands.

"We are excited to have Expedia as our partner and are proud to welcome them to Asia. We've taken our time to find a great partner that understands Asia and matches our drive, passion and aspiration," added Fernandes.

"AirAsia have made it possible for everyone to fly. Through this partnership with Expedia we hope to share the same experience we've shared with others and take our unique travel and brand experience further, farther and wider," Fernandes concluded.

Barry Diller, Chairman and Senior Executive, Expedia, Inc., said, "By partnering with AirAsia, Expedia is taking an important step in developing our global position. This is particularly exciting, given Asia's influence in the online travel marketplace."

"We couldn't have found a better partner than AirAsia. In addition to being the region's leading low cost carrier, the airline also shares Expedia's aspiration to make travel accessible to everyone. I'm deeply impressed by AirAsia's growth in such a short period of time, and its amazing network."

"There is a lot of focus on travel in Asia today and this collaboration allows our customers to connect to a great network here via AirAsia. Combined with Expedia's impressive selection of global travel offerings and package technology, we think this partnership enables both companies to offer travellers world-class travel products at an unparalleled value," Diller added.

To celebrate the happy union, http://www.AirAsiaGo.com will be offering hotel discounts of up to 80% off in 10 Asian cities for three days beginning on the 29th March, and Expedia will be launching its new Malaysian site http://www.expedia.com.my and Thai site http://www.expedia.co.th with a two week sale of up to 60% off on South-East Asian destinations.

AirAsia's branded website's http://www.airasiago.com and http://www.gorooms.com and Expedia, Inc.'s existing Expedia branded businesses in Japan (http://www.expedia.co.jp), India (http://www.expedia.co.in) and Singapore (http://www.expedia.com.sg) along with new markets launched today in Malaysia (http://www.expedia.com.my) and Thailand (http://www.expedia.co.th) will be operated by the joint venture.

About AirAsia

AirAsia, the leading and largest low-cost carrier in Asia, services the most extensive network with approximately 139 routes covering destinations in Asia, Australia and Europe. In 8 plus years of operations, AirAsia has carried more than 100 million guests and grown its fleet from just two aircraft to approximately 100. The airline today is proud to be a truly Asean (Association of Southeast Asian Nations) airline with established operations based in Malaysia, Indonesia and Thailand, servicing a network stretching across all Asean countries, China, India, Bangladesh, Sri Lanka and Australia. This is further complemented by AirAsia X, its low-cost long-haul affiliate carrier that currently flies to destinations in China, Australia, Taiwan, India, Iran, Japan, Korea, New Zealand, France and the UK. AirAsia was named World's Best Low Cost Airline in the annual World Airline Survey by Skytrax for two consecutive years, in 2009 and 2010.

About Expedia

Expedia, Inc. (Nasdaq: EXPE), the world's leading online travel company, operates Expedia.com.sg in Singapore. Expedia helps travellers plan and book their travel by providing a personalised service, the latest technology and a wide selection of holiday packages, cheap flights, hotel bookings, car hire, in-destination attractions & activities, adventure tours and travel insurance to suit their travel needs.

About Expedia, Inc.

Expedia, Inc. is the largest online travel company in the world, with an extensive brand portfolio that includes more than 90 localized Expedia.com(R)- and Hotels.com(R)-branded sites; leading U.S. discount travel site Hotwire(R); leading agency hotel company Venere.com(TM); Egencia(R), the world's fifth largest corporate travel management company; the world's largest travel community TripAdvisor(R) Media Network; destination activities provider ExpediaLocalExpert(R); luxury travel specialist Classic Vacations(R); and China's second largest booking site eLong(TM). The company delivers consumers value in leisure and business travel, drives incremental demand and direct bookings to travel suppliers, and provides advertisers vast opportunity to reach the most valuable audience of in-market travel consumers anywhere through TripAdvisor Media Network and Expedia Media Solutions. Expedia also powers bookings for some of the world's leading airlines and hotels, top consumer brands, high traffic websites, and thousands of active affiliates through Expedia(R) Affiliate Network. (NASDAQ: EXPE)

Expedia and the Airplane logo are either registered trademarks or trademarks of Expedia, Inc. in the US and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners.

(c) 2011 Expedia, Inc. All rights reserved.