KUALA LUMPUR (Oct 31): AirAsia Bhd group chief executive officer Tan Sri Tony Fernandes said the budget airline is fulfilling its promise of paying special dividends to shareholders as the company embarks on a planned joint venture (JV) with Singapore-listed SATS Ltd.

SATS provides ground handling and in-flight catering services in Singapore.

"Delivering to shareholders what we promised. Special dividends. Strategy is clear. Create business from assets either physical or digital. Get a JV business partner to run and grow business," Fernandes said via Twitter yesterday ahead of a press conference in Singapore today on the AirAsia-SATS JV.

Yesterday, AirAsia said it signed a share-swap agreement to transfer 98% in 100%-owned Ground Team Red Sdn Bhd (GTR Malaysia) to AirAsia's wholly-owned subsidiary Ground Team Red Holdings Sdn Bhd (GTRH) in exchange for AirAsia's 88.6% stake in GTRH. At the same time, GTRH will acquire an 80% stake in SATS Ground Services Pte Ltd, a wholly-owned subsidiary of SATS, in exchange for SATS' 11.4% stake in GTRH.

AirAsia said it had also signed a share sale agreement for AirAsia to sell a 38.6% stake in GTRH to SATS. "It is anticipated that these transactions will result in AirAsia realising a gain on disposal of RM365.7 million in Q4 2017. The cash balance of AirAsia will increase by RM372.2 million following the sale," AirAsia said.