Where art thou Zarinah;You're action needed in the matter of the MAS -AirAsia share swap
Prima facie, the transaction reported below is a promise by the CEO of AirAsia, Tony Fernandes, to not compete with AirAsia's rival, MAS, in exchange for him being granted 20.5% of MAS.
The exchange of his AirAsia stock for that in MAS is , prima facie, recognition that as a result of his agreement, MAS will gain at AirAsia's expense.
Simply put, Tony has breached his duty to as AirAsia CEO , and thus to AirAsia shareholders, for his personal gain.
If Zarinah Anwar wants to even pretend that she is some sort of regulator, she needs to initiate a transparent investigation into the transaction,and provide the investing public with some sensible answers.
Associated Press
AirAsia, Malaysia Airlines form partnership
By EILEEN NG , 08.09.11, 05:41 AM EDT
KUALA LUMPUR, Malaysia -- Budget carrier AirAsia and state-owned Malaysia Airlines formed an alliance Tuesday under a share swap deal to end their long rivalry and boost business.
Tune Air, the parent of AirAsia, and government investment arm Khazanah signed an agreement to exchange shares. This will see Tune hold a 20.5 percent stake in Malaysia Airlines, while Khazanah gets a 10 percent stake in AirAsia.
Analysts say the deal will curtail competition and help turn around the struggling state carrier and improve AirAsia's access to lucrative international routes.
However, some opposition lawmakers fear it will create a monopoly.
AirAsia Chief Executive Tony Fernandes defended the deal, saying it would improve services.
"I don't think there is anything to worry about for the Malaysian public. This is driven by low cost. Be positive about it," Fernandes said.
Media reports have estimated the deal would be worth 2 billion ringgit ($657 million). Khazanah currently owns a nearly 70 percent stake in Malaysia's flagship carrier.
Analysts believe the partnership will enable Malaysia Airlines to focus on premium routes while AirAsia can expect to get more access to international air routes with Khazanah as its shareholder. AirAsia has long complained that the state carrier monopolizes profitable routes.
HwangDBS Vickers Research said the deal would help reposition Malaysia Airlines as a premier long-haul carrier. Some observers said this was akin to bailing out the national carrier, which suffered a first-quarter loss due to high fuel prices.
Malaysia Airlines Chairman Md Nor Yusof said the agreement marked "a new era of cooperation," with both airlines complementing each other and bolstering Malaysia's ambition of becoming a regional travel hub.
Md Nor said Malaysia Airlines will focus on being a full-service carrier, while its budget unit, Firefly, would be relaunched as a new regional full-service airline.
In contrast, AirAsia, which started in 2001 with just two planes, has expanded phenomenally across the region with a fleet of nearly 100 aircraft. It now offers long-haul flights through affiliate AirAsia X.
In June, AirAsia ordered 200 Airbus SAS A320 airplanes, raising its total orders for A320 aircraft to 375 as it aims to become one of the world's largest airlines by 2020. It posted a record profit of 1.07 billion ringgit in the 2010 financial year.
Other analysts said the alliance would help cut costs with better bargains for aircraft purchases and allow Malaysia Airlines to compete with regional rival Singapore Airlines ( SGPJF.PK -news - people ), which plans to set up a budget airline next year to operate medium and long-haul routes.
Dzulkefly Ahmad, lawmaker from the opposition Pan-Islamic Malaysian Party, expressed concerns the partnership would hurt the aviation sector. He said the tie-up comes ahead of a Competition Act that will be implemented next year to restrict monopolistic practices in Malaysia.
"Monopolies are the single largest stumbling block in the process to reform the Malaysian economy," he said.
"It can only result in the consumers losing out," said Tony Pua of the opposition Democratic Action Party.
Khazanah has also proposed to acquire 10 percent of shares in long-haul carrier AirAsia X at a later date. Malaysia Airlines and AirAsia will also issue free warrants to each other's shareholders.
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
The exchange of his AirAsia stock for that in MAS is , prima facie, recognition that as a result of his agreement, MAS will gain at AirAsia's expense.
Simply put, Tony has breached his duty to as AirAsia CEO , and thus to AirAsia shareholders, for his personal gain.
If Zarinah Anwar wants to even pretend that she is some sort of regulator, she needs to initiate a transparent investigation into the transaction,and provide the investing public with some sensible answers.
Associated Press
AirAsia, Malaysia Airlines form partnership
By EILEEN NG , 08.09.11, 05:41 AM EDT
KUALA LUMPUR, Malaysia -- Budget carrier AirAsia and state-owned Malaysia Airlines formed an alliance Tuesday under a share swap deal to end their long rivalry and boost business.
Tune Air, the parent of AirAsia, and government investment arm Khazanah signed an agreement to exchange shares. This will see Tune hold a 20.5 percent stake in Malaysia Airlines, while Khazanah gets a 10 percent stake in AirAsia.
Analysts say the deal will curtail competition and help turn around the struggling state carrier and improve AirAsia's access to lucrative international routes.
However, some opposition lawmakers fear it will create a monopoly.
AirAsia Chief Executive Tony Fernandes defended the deal, saying it would improve services.
"I don't think there is anything to worry about for the Malaysian public. This is driven by low cost. Be positive about it," Fernandes said.
Media reports have estimated the deal would be worth 2 billion ringgit ($657 million). Khazanah currently owns a nearly 70 percent stake in Malaysia's flagship carrier.
Analysts believe the partnership will enable Malaysia Airlines to focus on premium routes while AirAsia can expect to get more access to international air routes with Khazanah as its shareholder. AirAsia has long complained that the state carrier monopolizes profitable routes.
HwangDBS Vickers Research said the deal would help reposition Malaysia Airlines as a premier long-haul carrier. Some observers said this was akin to bailing out the national carrier, which suffered a first-quarter loss due to high fuel prices.
Malaysia Airlines Chairman Md Nor Yusof said the agreement marked "a new era of cooperation," with both airlines complementing each other and bolstering Malaysia's ambition of becoming a regional travel hub.
Md Nor said Malaysia Airlines will focus on being a full-service carrier, while its budget unit, Firefly, would be relaunched as a new regional full-service airline.
In contrast, AirAsia, which started in 2001 with just two planes, has expanded phenomenally across the region with a fleet of nearly 100 aircraft. It now offers long-haul flights through affiliate AirAsia X.
In June, AirAsia ordered 200 Airbus SAS A320 airplanes, raising its total orders for A320 aircraft to 375 as it aims to become one of the world's largest airlines by 2020. It posted a record profit of 1.07 billion ringgit in the 2010 financial year.
Other analysts said the alliance would help cut costs with better bargains for aircraft purchases and allow Malaysia Airlines to compete with regional rival Singapore Airlines ( SGPJF.PK -news - people ), which plans to set up a budget airline next year to operate medium and long-haul routes.
Dzulkefly Ahmad, lawmaker from the opposition Pan-Islamic Malaysian Party, expressed concerns the partnership would hurt the aviation sector. He said the tie-up comes ahead of a Competition Act that will be implemented next year to restrict monopolistic practices in Malaysia.
"Monopolies are the single largest stumbling block in the process to reform the Malaysian economy," he said.
"It can only result in the consumers losing out," said Tony Pua of the opposition Democratic Action Party.
Khazanah has also proposed to acquire 10 percent of shares in long-haul carrier AirAsia X at a later date. Malaysia Airlines and AirAsia will also issue free warrants to each other's shareholders.
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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