BANGKOK, 21 October 2021: Asia Aviation Plc, the major
shareholder of Thai AirAsia, has unveiled a new shareholder restructuring plan
that will inject THB14,000 million in capital secured by issuing convertible
bonds and new ordinary shares to both new and existing shareholders.

Through this process, AAV aims to hold all shares in Thai
AirAsia while also enhancing liquidity for the airline.

Asia Aviation Plc and Thai AirAsia executive chairman
Tassapon Bijleveld, explained: “As we gear up and ready ourselves for travel
resumption post-Covid, necessary changes are required for our capital raising
and revenue management strategy. 

“AAV has formulated this new restructuring plan to
provide the company with both working capital and the liquidity needed to sustain
operations in line with Thailand’s plans for reopening.  Reconsidering previous operational and
capital adjustments and entering into negotiations with new investors,
shareholders and creditors of both AAV and TAA, the new plan is expected to be
implemented within the first quarter of 2022.

AAV will increase its registered capital and offer newly
issued ordinary shares on a private placement, totalling approximately THB
8,800 million. The revised shareholder restructuring plan will also offer
AirAsia Aviation Limited (“AAA”) additional investment of THB7,800
million and individual investors up to THB1,000 million by allocating shares
not exceeding of 5,028,571,429 shares (with a par value of THB 0.10 per share).

In addition, AAV will issue and offer the convertible bonds
in an amount THB2,200 million with a maturity period of not more than two years
to two key investors, comprising of Bangkok Bank Plc in an amount of THB1,200
million and North Haven Thai Private Equity LP in an amount of THB1,000 million.
The conversion ratio of 0.00175 convertible bonds can be converted into one
ordinary share and can be converted to new shares in the maximum amount of but
not exceeding 1,257,142,857 shares (with a par value of THB 0.10 per share).

AAV will increase its registered capital and offer the
newly-issued shares to existing shareholders of the company proportionate to
their respective shareholdings (Rights Offering), in the amount of not
exceeding 1,714,285,714 shares with the ratio of 5.7625 existing ordinary share
to one ordinary share at the offering price of THB1.75 per share, totalling
approximately THB3,000 million.

Once the restructuring is completed during the first quarter
of 2022, AAV will hold all shares in TAA using capital raised through fundraising.

Tassapon noted tourism and aviation were recovering and that
the airline expected to ‘return to 100% of our normal domestic operations by
January 2022.  We are also looking
forward to recommencing our key international routes shortly in light of the
Thai government’s country reopening plan.”