MAS reported a RM million net loss for the first quarter of this year. It is likely that the two operators will co-exist in some markets, for example Melbourne and Perth, although AirAsia X is much more likely to focus on secondary destinations, where its low cost structure will enable it to operate more effectively than Malaysia Airlines.
While both parties are likely to enjoy better purchasing power if they act as a combined entity, more importantly, the deal could help reposition and turnaround MAS as a premier long haul carrier.
For AirAsia, being a larger entity and having Khazanah as a shareholder, will allow it to obtain more routes and landing rights both locally and internationally.
As the table below shows, the growing links between Malaysia Airlines and AirAsia will considerably strengthen their position at Kuala Lumpur International Airport, currently the tenth largest Asian Mas and airasia collaboration by weekly seat capacity.
In a press conference held after 3. This does raise the issue about who will pick-up any capacity short-fall from this restructuring; if these flights will operate under the Malaysia Airlines brand or if a new sub-brand will be established to serve regional Asean markets.
AirAsia is also the best performing stock among global LCCs, chalking up gains throughout the year. Maybank Investment Bank said a tie-up involving operations would provide synergies of up to RM1billion annually in the form of yield, network, growth, fleet, staff, MRO and cargo, however the bank believes the full synergy could take time to materialise.
To commemorate this achievement, AirAsia X had a special promotion offering low, all-in fares that started on 4 July across its network excluding Tehran from Kuala Lumpur.
According to the investment bank, the deal would only commence once an anti-trust analysis has been completed in compliance with all applicable anti-trust laws. Firefly will in turn be turned into a service carrier serving short routes, therefore removing it as a competition to Air Asia.
Over recent months there has been growing competition between AirAsia and Firefly as the latter has expanded its network and introduced short-haul jet airliners. The airline also restructured its sales unit following the departure of its senior general manager of sales and marketing Datuk Bernard Francis.
The board also announced the establishment of an executive committee exco to be chaired by Md. Most analysts believe MAS was the biggest winner from the share swap deal.
Together with their associated companies they will have a My strategy in its 45 for rights issue Join The Conversation The Shares Investment editorial team welcomes constructive feedback on our coverage and content.
The collaboration agreement will also change the dynamics between Malaysia Airlines and AirAsia X, which has been competing for traffic rights on many of the routes currently served by the national carrier.
They are generally positive that share price movement in the near term for both stocks, will benefit from the deal. These appointments will be effective Aug 9, it said. Even though Malaysia Airlines is likely to retain its routes to London and Paris, Air Asia X would argue that that is has sufficiently stimulated demand in these two markets to show there is space for two carriers.
No to be outdone, AirAsia X, the long-haul, low fare affiliate of AirAsia has once again exceeded expectations by flying over 5 million guests to date since its first flight in November The agreement will come into effect immediately upon its execution and shall remain in effect for five years from the date of the collaboration agreement, with an option for a further five-year renewal.
Malaysia Corporate Digest 29 August By: Firefly currently operates turbo-props from Subang airport and jet planes from Sepang and East Malaysia. We would also be delighted to answer any questions on the above article.
As a result of this deal, Tune Air will hold AirAsia and MAS are trading at 2.
It will oversee the management of the company until such time a new managing director is appointed, it said."The collaboration between MAS, AirAsia and AirAsia X was flawed from day one because it cannot bring in a rival.
From the start, the share swap had been marked by controversy, suspicion and infighting so much so that it distracts from the real issues in MAS.
Management of AirAsia Words | 6 Pages. Management is the key for a company success. AirAsia used to be a Malaysian government-owned airline and it sold to Tony Fernandes’s company Tune Air SdnBhd for the nominal sum of 1 ringgit.
On 9 AugustMalaysian Airline System Bhd (“MAS”), and two AirAsia entities, namely AirAsia Berhad and AirAsia X Berhad, entered into a Collaboration Agreement with the stated aim of sharpening the focus on core competencies, delivering better products and choice for customers, and ultimately creating greater value for all stakeholders.
Last August, MAS’ major shareholder Khazanah Nasional Bhd agreed to swap shares with AirAsia’s major shareholder, Tune Air Sdn Bhd, which saw Khazanah getting a 10% stake in AirAsia and Tune Air a 5% stake in MAS. MAS, AirAsia and AirAsia X also entered into a comprehensive collaboration framework to leverage on their respective core strengths.
Khazanah, which prior to this arrangement held 69% of MAS’ shares, will continue to be the single largest and major shareholder of the airline, though its interest would be reduced to just short of 49%.
MAS, AirAsia and AirAsia X enter comprehensive collaboration framework Malaysia Airline System Berhad, AirAsia Berhad and AirAsia X Sdn Bhd entered (Aug) into a Comprehensive Collaboration Framework (“CCF”) which includes a Collaboration Agreement to explore opportunities to co-operate on a broad range of areas.Download