MAS-AirAsia arrangement intact

by **hlk** Wed 14 Mar 2012, 08:23

NOTHING YET: We have not received any reports or information on changes to deal, says transport minister

THE Transport Ministry has not received any reports on changes to the share swap deal between Malaysia Airlines and AirAsia Bhd, as such the arrangement between the two airlines is, for now, still intact.

"We have not received any reports, (nor) been informed of any changes to the current arrangement," Transport Minister Datuk Seri Kong Cho Ha told reporters here yesterday.

A local news portal reported that the government was not too happy with the outcome of the deal so far and is looking at reviewing it.

It was also reported that Malaysia Airlines' employees are strongly against the share swap arrangement and this had prompted Prime Minister Datuk Seri Najib Tun Razak to consider the option of unwinding the deal.

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Kong said any decision on the issue would have to be made by the parties involved together with Khazanah Nasional Bhd.

"I can't comment further because for now, I have not been informed of anything... the deal is still as it is."

He said this on the sidelines of the World Cargo Symposium, organised by International Air Transport Association (IATA) here yesterday.

On the cancellation of routes by AirAsia X, the long-haul, low-fare affiliate of AirAsia, Kong said these decisions are purely business in nature and the ministry has no say over them.

"When they decide to cancel or add routes, they must inform us well ahead. Where they want to fly and how many times, additional destinations and routes cancellation, are business decisions of an airline."

Earlier, Kong witnessed the signing of a memorandum of understanding for the Secure Freight Programme between the IATA and the Department of Civil Aviation (DCA) Malaysia.

In his speech, Kong said MASkargo, the DCA, Malaysia Airports and IATA were working closely with industry players to introduce the Secure Freight Programme, where Malaysia is the pilot country for the programme.

"The result of this close collaboration will benefit many industry players as it reduces the complexities and cost of air cargo security and ensures that the supply chain of stakeholders works in the same direction," he said.