Fernandes rules out MAS-AirAsia merger

by **hlk** Tue 20 Sep 2011, 08:07

KUALA LUMPUR: The continous growth as the premier airline and low-cost carrier, respectively, will be the key outcome of the collaboration between Malaysia Airlines (MAS) and AirAsia, said Tan Sri Tony Fernandes.

“There has been relatively poor returns from the many businesses it ventured into previously.

“Airlines try to do too many things, (have) low cost as well as first, business and economy classes. (They are also into) maintenance, repair and overhaul and catering, which are separate businesses,” said the AirAsia chief in an interview with Bernama yesterday.

Referring to the share-swap proposal between MAS and AirAsia announced some weeks back, Fernandes killed off speculation that it would lead to an eventual merger between the two carriers.

“I don't believe in a merger. It will be like what we did with AirAsia and AirAsia X, we separated them (and allowed them to focus on their businesses).

“The key is to remain focused on the respective strengths and the similar formula should apply to MAS,” he said.

Many quarters had also voiced their concerns on the benefits of such an agreement when Khazanah Nasional Bhd, the major shareholder of MAS, announced that it would take up a 10% stake in AirAsia while Tune Air Sdn Bhd, the investment vehicle of Fernandes and Datuk Kamarudin Meranun, would own a 20.5% stake in MAS under the share-swap deal.

There were also some who suggested that the arrangement would benefit AirAsia more than MAS.

“(Why) has there to be a winner or loser, why can't there be two winners?” Fernandes said. - Bernama