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Malaysia Airlines and AirAsia terminate share swap; to continue with other collaboration plans

3-May-2012 8:23 AM

Malaysia Airlines and AirAsia announced (02-May-2012) the companies agreed to the termination of the share swap which was originally entered into on 21-Oct-2011 as part of a Comprehensive Collaboration Framework (CCF) agreement. As previously reported by CAPA, the share swap involved Tune Air (representing AirAsia) taking a 20.5% stake in the national carrier while Khazanah Nasional took a 10% stake in AirAsia. Malaysia Airlines’ employee unions opposed the agreement, raising concerns the CCF resembled a takeover by AirAsia. The share swap will now be reversed. In the CCF's place the companies entered into a supplemental agreement which will see the original agreement's terms and scope varied to focus on exploring collaboration in the area of aircraft maintenance and repair, procurement and training. Following the termination, Tony Fernandes and Dato' Kamarudin bin Meranun who were appointed to the Malaysia Airlines' Board of Directors from AirAsia, resigned from the board. Malaysia Airlines announced the airline is considering "various funding options" in the wake of the share swap termination, including the potential raising of a MYR3 billion (USD991 million) Islamic bond. [more - original PR - Malaysia Airlines] [more - original PR - Malaysia Airlines (2)] [more - original PR - AirAsia] [more - original PR - AirAsia (2)] [more - original PR - Tune Air] [more - original PR - Malaysia Airlines Board of Directors (Anthony Fernandes)] [more - original PR - Malaysia Airlines Board of Directors (Kamarudin bin Meranun)]