MAS-AirAsia merger not possible

MAS doesn't consider a merger with AirAsia as good for the industry.

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KUALA LUMPUR — June 11, 2015: A merger between Malaysia Airlines (MAS) and AirAsia is unhealthy for the domestic industry and hence is not possible, said MAS chief executive officer Christoph Mueller today.

“I am a strict opponent to this, I would absolutely advocate for each country to have two carriers,” he said.

Monopoly is not good for consumers, particularly domestic consumers, said the newly-appointed Mueller at the Global Airport Developments Asia 2015 conference.

“If prices from Kuala Lumpur to Kota Kinabalu or Kuching are subjected to a monopoly situation, it is not good for both the economy and countr‎y.”

From a macroeconomic perspective, two carriers would help keep air fares lower, Mueller replied when asked about a possible merger between the two after a previous arrangement fell through.

In August 2011, MAS and AirAsia entered into a collaboration agreement in conjunction with a share swap deal to work together and not to compete against each other but the deal was aborted eight months later.

AirAsia group chief executive officer Tan Sri Tony Fernandes recently said that AirAsia had entered into discussions with MAS over possible cooperation in the maintenance, repair and overhaul sector.

The three-day conference which ended today aimed to explore strategies for airport development and finance in high-growth markets. — Bernama



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