AirAsia will defend itself over charges and a RM10 million fine for a monopoly with Malaysia Airlines, saying today anti-trust regulators should instead focus on monopolies, such as Malaysia Airports.
“As an airline, AirAsia welcomes MyCC’s active role in ensuring fair and competitive behaviour in the market; but we urge that it also focuses its attention on entities that are in monopolistic positions, such as Malaysia Airports,” the airline said in a statement.
Monopolies are not illegal in Malaysia per se, but anti-competitive behaviour is an offence under the Competition Act 2010. MyCC deals with allegations of firms partaking in deals that restricts, prevents or distorts competition in any market involving goods or services.
In a decision released today by the commission, both airlines were found guilty of infringing the Competition Act 2010 by sharing markets.
The low-cost carrier vehemently denied that it broke any laws when the firm went into a short-lived share swap deal with Malaysia Airlines (MAS).
“AirAsia intends to vigorously defend the allegations that it has infringed section 4(2) (b) 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.”
The Malaysia-based carrier’s share went down 9 cents in the local stock exchange to close at RM2.50 today.
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.
MAS, the national carrier, saw its share remain unchanged at RM0.32 today.
In August 2011, state asset manager Khazanah Nasional signed a deal to swap part of its holdings in MAS with Tune Air, the biggest shareholder in low-cost carrier AirAsia.
The deal between the two airline giants in Malaysia was called off in May 2012 after MAS employees protested against the deal. Union leaders said the main issue was that they did not “trust” AirAsia and were wary over proposals to cut salaries and benefits as well as some of the airline’s routes. – September 6, 2013.