Wednesday August 10, 2011
Fernandes, Kamarudin join MAS board, Tengku Azmil quits as MD
KUALA LUMPUR: Malaysia Airlines (MAS) and AirAsia Bhd inked a landmark deal yesterday that is set to reshape the aviation industry. By co-operating to leverage on their core strengths and expertise, the two carriers plan to lower competition and cut costs in the areas of aircraft purchases, engineering, ground support services, cargo services, catering and training.
As part of the deal, Tan Sri Tony Fernandes and Datuk Kamarudin Meranun of AirAsia will sit on the MAS board. Their company, Tune Air Sdn Bhd, via a share swap, will end up with 20.5% equity stake in MAS. There is a moratorium period covering the shares, but the details were not released yesterday.
In turn, MAS' parent, Khazanah Nasional Bhd, will take up a 10% stake in AirAsia and MAS director Datuk Azman Yahya will join the AirAsia board. Khazanah will remain the major shareholder in MAS with a 49% stake. The deal is said to be valued close to RM2bil based on Friday's closing, with MAS closing at RM1.60 a share and AirAsia at RM3.95 per share.
“The airlines will remain distant and separate, with separate boards. They will focus on their core competitiveness and it is about capturing growth opportunities (in a concerted way). It is a powerful combination,” said Khazanah managing director Tan Sri Azman Mokhtar. However, he denied that the deal was a bailout of MAS.
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Anak Askar
Very interesting development. Never thought that MAS will collaborate with Air Asia. Years ago that had big spate regarding the flying routes. They hurled accusations to each other. And now..walllaaa
Let see if Tony could work magic with his new challenge. He must know all the obstacles before he agreed. MAS is under Khazanah meaning owned by government. Things not be the same as there must be many interventions. Let see how he handled the pressure especially the the politic pressure and of course from Rakyat.
Good Luck Tony
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