Tuesday, August 9, 2011

Will there really be competition?

Malaysia Airlines and AirAsia Bhd will have common directors in Tan Sri Tony Fernandes and Datuk Kamarudin Meranun sitting on MAS board. Datuk Azman Yahya (a director in MAS) and Mohd Rashdan (executive director of MAS) will sit on AirAsia board.

This is a result of a share swap deal where Fernandes and Kamarudin's vehicle Tune Air ends with a 20.5% stake in MAS and Khazanah Nasional Bhd (MAS parent) takes 10% in AirAsia. The deal will change the landscape of the local aviation industry. It virtually takes the element of low cost fares away from MAS.

Food for thought:
Is the deal good for travellers, will fares get lower or will all this curtail competition?

Btw, the pretty Datuk Rohana Rozhan, the CEO of Astro Malaysia is now MAS board member.
And to Tengku Datuk Azmil Zahruddin, you are a good man...all the best to you.


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