MAS and AirAsia Shares Swap

[Arthur Van Straten 0]

Aah, now the topic gets sexy.

 

"Meanwhile, MAS issued a statement on the Bursa Malaysia website with an announcement that it will submit "a written representation” and indicate if it “intends to make an oral representation to the Competition Commission no later than 18 October 2013”.

“MAS is reviewing the proposed decision in consultation with legal counsel,” said the statement."

 

And of course the other one,

“AirAsia intends to vigorously defend the allegations that it has infringed section 4(2) ( of the Competitions Act under the collaboration it entered with MAS in August 2011,” said the statement.

The firm also claimed that it had been aboveboard in its dealings and would submit its defence within the 30 days given by the commission.

“AirAsia has always put compliance as our utmost priority and similarly we have taken necessary steps to ensure that the collaboration arrangement was in compliance with applicable law in every respect.”

 

So, you see, nobody did anything wrong and MyCC can take a hike.

 

My initial questions still remain, 1. can MyCC enforce their findings and 2. if so, wher does the money go when they collect?

 

The plot thickens.

Cheers

Art

[flee 5]

I have to admit, this kind of thing keeps MWings members entertained.

[KK Lee 5]

Like many high profile court cases recently, on appeal and phone call from the top, penalty will be reduced to a nominal sum or found not guilty.

 

Endless possibilities

[V Wong 0]

Just a farcical drama scripted, directed and acted out in accordance to the powers that be. Watch out for series 2, 3... then sudden death due to poor viewership/demand

[BC Tam 2]

Like many high profile court cases recently, on appeal and phone call from the top, penalty will be reduced to a nominal sum or found not guilty.

 

Endless possibilities

Impressed though with the lengths 'we' go through for a paltry 10M each Edited September 6, 2013 by BC Tam

[hafiziza 0]

Aah, now the topic gets sexy.

 

"Meanwhile, MAS issued a statement on the Bursa Malaysia website with an announcement that it will submit "a written representation” and indicate if it “intends to make an oral representation to the Competition Commission no later than 18 October 2013”.

“MAS is reviewing the proposed decision in consultation with legal counsel,” said the statement."

 

And of course the other one,

“AirAsia intends to vigorously defend the allegations that it has infringed section 4(2) ( of the Competitions Act under the collaboration it entered with MAS in August 2011,” said the statement.

The firm also claimed that it had been aboveboard in its dealings and would submit its defence within the 30 days given by the commission.

“AirAsia has always put compliance as our utmost priority and similarly we have taken necessary steps to ensure that the collaboration arrangement was in compliance with applicable law in every respect.”

 

So, you see, nobody did anything wrong and MyCC can take a hike.

 

My initial questions still remain, 1. can MyCC enforce their findings and 2. if so, wher does the money go when they collect?

 

The plot thickens.

Cheers

Art

 

MyCC may bring proceedings before the High Court against any person who fails to comply with their findings.

 

If the High Court finds that the person has indeed failed to comply with MyCC's findings, the High Court shall make an order requiring that person to comply with the findings. The High Court also has the power to order a person who has failed to pay a penalty to pay interest of 8% per annum on the penalty.

 

Any breach of the High Court's order shall be punishable as a contempt of court.

Edited September 7, 2013 by hafiziza

[BC Tam 2]

Fines on MAS and AirAsia, but what about the consultants?

http://www.themalaysianinsider.com/malaysia/article/fines-on-mas-and-airasia-but-what-about-the-consultants

 

Interesting take, but doubt if it will proceed beyond the 'interesting read' stage

[Mohd Azizul Ramli 2]

Breaking news from the MH Rumour Department!!!

 

A new set of routes have been announced as bye bye! KUL-FCO is out, so does KUL-SUB and SIN-PEN-LGK.

 

This is on top of KUL-KHI-DXB, KUL-DXB-DMM, KUL-DXB which have been identified and KUL-JNB and KUL-CPT-EZE which have been officially announced.

 

Date of last service of those routes:

 

DXB/DMM - 12 January 2012

KHI/DXB - 13 January 2012

JNB - 31 January 2012

LGK-PEN-SIN - 7 January 2012

SUB - 30 January 2012

FCO - 2 February 2012

CPT-EZE - 1 February 2012

 

This is of highly credible source as the info was embargoed from MH's internal email.

 

I apologise for digging up this 2nd biggest thread in MW from its long sleep but I would like to share some interesting info about the list of destinations that was cut in early 2012.

 

I had a 4 eyes meeting with a spy from the MH Rumour Department yesterday and according to the spy, there are 2 more destinations that were (or probably still are) bleeding but it survived the cut despite being listed down as candidates for the culling to the grand master up high, back then. The 2 destinations are AKL and BNE. The most shocking part is that AKL is the 2nd most unprofitable destination/route at that time, beaten by only CPT-EZE. This route has not only survived but even soared in current times being served by the airline with a daily frequency. We tried to figure out what is the reason behind this prevailing feat but the best that we can conclude is that MH would probably does not want to lose its non stop service to New Zealand. And yes, we did discussed about why BNE and AKL do not being tagged together as well since both destinations were in the list.

 

Another shocking info is that some of the other routes that I personally thought were not making money due to its low frequency and far distance from KUL were actually isn't. IST (currently 3 weekly B772) and FRA (currently 5 weekly B772) were/are profitable.

 

However, there is no mention of TPE (now NRT)-LAX.

[KK Lee 5]

As MH is not a commercial airline, nothing is shocking.

 

Hopefully, with daily service, AKL yield and load has improved and profitable.

[Mike P 0]

AKL and BNE?? Unprofitable? Something must be wrong.... wrong aircraft deployed?

[Johan Z 0]

That's a surprise. Maybe MH need smaller aircraft to serve BNE and AKL.

 

Last time I was on KUL-NRT-LAX. KUL-NRT was almost full ~90% in Y, while NRT-LAX was less than 50%.

[Mike P 0]

That's a surprise. Maybe MH need smaller aircraft to serve BNE and AKL.

 

Last time I was on KUL-NRT-LAX. KUL-NRT was almost full ~90% in Y, while NRT-LAX was less than 50%.

 

Those are long haul routes, and it's only reasonable to use A330, the latest airbus. Though not sure if A330 can serve to AKL.

[Johan Z 0]

I'm thinking of 787-8 sized aircraft.

[S V Choong 4]

AKL and BNE can be combined easily. I believe MH still holds rights for KUL-BNE-AKL. May be people dislike stopping over at BNE as it makes the journey longer - by a further 1 to 1.5 hrs.

 

The fact that AKL and BNE are not making profit isn't surprising. Royal Brunei used to fly to both BNE and AKL. First as a tagged on from BNE (onward to AKL) and later it was separated made direct to both BNE and AKL from BWN. It ran for several years before it was axed.

Edited December 30, 2013 by S V Choong

[Guest Michael]

Extend the bilateral to fly via BNE on to AKL and vice versa.

[geoff.leo 0]

Brisbane is a tricky one for MAS. Unlike Sydney and Melbourne, KUL-BNE doesn't have strong local traffic.

 

MAS' existing daily morning departure from KUL is alright for Europe-BNE connections but not the other way round, save for LHR which has a daytime departure out of KUL. Good for connection to MAS' Asian network though. And sufficient to cater to the local KUL-BNE vv market.

 

To capitalize fully on the Europe-BNE-Europe market, an evening departure out of KUL is needed. And this is the tricky bit.

 

The KUL-BNE market isn't big enough to sustain a daily evening departure from KUL, hence the danger of over-reliance on transit traffic to Europe. This flight will also not be good for Asian connections as the flight would be timed arrive back in KUL around 2000-2100hrs.

 

Even if MAS goes ahead with a daily evening KUL departure, the aircraft sits on the tarmac for a good 7-9 hours, all for the sake of ensuring good connection timings to Europe in KUL. Some suggested that the idle time in BNE could be used for a tag on to New Zealand. That won't work. It's at least 3 hours on BNE-AKL/CHC and close to 4 hours on the return leg because of the strong jet streams over the Tasman. Including the ground turnaround times, you need at least 11 hours to comfortably operate this route. And if you're thinking of local BNE-NZ rights, even if MAS still has it, all the best in competing in the trans-Tasman market. MAS wouldn't have any backers with the Emirates-Qantas alliance. There's also Virgin Australia and Air NZ. Not a battle worth taking all for the sake of aircraft utilization.

 

SIA's aircrafts in BNE spend much less ground time as they have 2 daily evening departures out of SIN, which gives them 2 day departures out of BNE. But even SIA took many years to achieve this level of economic scale for BNE. And to top it off, there's Emirates' massive BNE operations.

 

It's all about picking the right battles. IMO, this one isn't worth it.

[S V Choong 4]

SIA's aircrafts in BNE spend much less ground time as they have 2 daily evening departures out of SIN, which gives them 2 day departures out of BNE. But even SIA took many years to achieve this level of economic scale for BNE. And to top it off, there's Emirates' massive BNE operations.

 

 

 

If memory serves me right, EK has DXB-BNE-AKL and DXB-SIN-BNE-AKL!?

Edited December 31, 2013 by S V Choong

[flee 5]

High Court reinstates RM10m fine imposed on MAS and AirAsia

 

See: https://www.malaymail.com/s/1704947/high-court-reinstates-rm10m-fine-imposed-on-mas-and-airasia