MASTROUBLESHOOTERS SALUTE DR. PUAD ZARKASHI

AirAsia, MAS rapped for ‘monopolistic’ deal

Source: http://www.btimes.com.my/articles/20130914010427/Article/

KUALA LUMPUR: AirAsia Bhd should have been slapped with a higher fine for the “monopolistic” share swap deal with Malaysia Airlines (MAS), said Umno supreme council member Datuk Dr Mohd Puad Zarkashi.

Puad also said MAS managing director and group chief executive officer Ahmad Jauhari Yahya must accept full responsibility by resigning.

He urged Ahmad Jauhari to pay the RM10 million fine imposed on the national carrier by the Malaysia Competition Commission (MyCC) from his pocket.

Puad said AirAsia, which was fined the same amount, should be made to pay more as it was the bigger beneficiary of the deal, which was ruled as unlawful by MyCC for being monopolistic.

“AirAsia, without a doubt, stands to benefit more from the share swap deal than MAS.

Tony (AirAsia group chief executive offi cer Tan Sri Tony Fernandes) is a staunch supporter of the deal, which saw an exodus of MAS workers to AirAsia.

“I can’t ask Tony to step down but in my opinion, MyCC should impose a higher fine on AirAsia.”

Stating his case for Ahmad Jauhari’s dismissal, Puad said Ahmad Jauhari had shown that he is incapable of leading.

“He should step down immediately or the government should not renew his contract, which is expected to expire this month.

“Everybody was taken aback when MAS was fined. We understand that a consultant was hired for the swap deal and we know that consultants are there for the sole purpose of making profits.

“Ahmad Jauhari should have spotted any weaknesses in the deal and objected to the consultant on the deal’s viability,” Puad told Business Times yesterday.

Ahmad Jauhari was appointed to spearhead MAS on September 14 2011 and his contract is believed to expire this month.

Earlier this month, MyCC - a unit under the Domestic Trade, Cooperatives and Consumerism Ministry - fined MAS and AirAsia for violating the Competition Act 2010.

They were found to have breached Section 4(2)(b) of the Act by entering into a Comprehensive Collaboration Framework agreement in August 2011.

The deal saw Khazanah Nasional Bhd, which owns 69 per cent of MAS, having a 10 per cent stake in AirAsia. In turn, Tune Air Sdn Bhd, AirAsia's controlling shareholder, was given a 20 per cent stake in MAS.

The deal was called off in May 2012 following heavy political and union pressure.

More details here: http://mastroubleshooters.blogspot.com/2012/05/say-what.html