Tomorrow is another day of major announcement. It is expected that the Malaysia Airlines-Air Asia ‘share swap’, inked on 9 August 2011 would be unlocked. However, it is expected that the Comprehensive Collaboration Framework (CCF) between the two airlines stays.
Khazanah Holdings Bhd. will take back the 20.5% shares swapped with AirAsia’s 10% (via Tune Air). It is also expected there would be changes in the board of directors of the two companies where Tony Fernandes and Kamaruddin Meranun would be expected to leave, as their interest in Malaysia Airlines would no longer be valid.
The CCF, is expected to be continued. The terms of the CCF would expected to be on the usual commercial basis. The objective for the CCF is for both airlines to synergise and to achieve the economies of scale, in preparation of the ASEAN Open Sky policy which comes to force in 2015. A lot of areas of mutual interest and benefit to both airlines, could be forged and worked together.
Definitely, Malaysia Airlines tend to gain the most as it has the mature facilities and advantage. An example is the Malaysia Airlines engineering facility, which could cater the maintenance, repair and overhaul (MRO) needs for both airlines. The combined fleet of over 200 aircrafts, could provide the MRO facility to be more competitive and more importantly, efficient.
Several detractors of the ‘share-swap’ deal also saw the benefit of the CCF.
The 20,000 odd employees of Malaysia Airlines were vehemently against the ‘share swap’ and they voiced their strong displeasure to it, which include when their representatives met Prime Minister Dato’ Seri Mohd. Najib Tun Razak. This announcement is a good Labour Day gift for them.
The official announcement would be made tomorrow afternoon.