Regional Round-Up
Unions scupper share swap deal
June 1st 2012
It was hailed as a breakthrough pact that would save Malaysia Airlines (MAS) from its financial plight, but after eight months the share swap deal between the Kuala Lumpur–based flag carrier and low-cost rival, AirAsia, has collapsed following opposition from unions. Read More »
The eight MAS unions and employee associations, representing the carrier’s 20,000 staff, appealed to government to step in and dismantle the deal, fearing significant job losses influenced by AirAsia’s budget philosophy.
Said AirAsia group chief executive, Tony Fernandes: “For the few negative detractors who made the most noise, I wonder what their solution is for MAS. I have seen no alternatives put forward by those people.”
Last August, AirAsia parent, Tune Air, took a 20.5% stake in MAS while MAS parent, Khazanah Nasional, took 10% in AirAsia. It was also intended that MAS would take a further 10% in AirAsia’s long-haul budget operation, AirAsia X.
However, both airlines have pledged to continue collaborating in areas such as aircraft component maintenance support and exploring wide-ranging procurement opportunities.
MAS suffered $825 million in net losses for the financial year ended December 31. It has 23 aircraft on order, including five A380s.
