AirAsia & MAS were fined RM10 million each for violation of Competition Act

The architects of the MAS-AirAsia share swap and CCF

The “Happy Family” of the MAS-AA share swap & CCF.  From 2nd left: Datuk Kamarudin Meranun of AirAsia, Tan Sri Azman Mokhtar (MD of Khaznah), Tan Sri Md Nor Yusof, Chairman of MAS, Tan Sri Tony Fernandes of AitrAsia, Rashdan aka Danny, nominee of Khaznah & Datuk Nazir Razak, the CEO of CIMB Group.

En Mohamed Rashdan Yusuf aka Danny  (left in pic). AJ showing thump up for Rashdan. AJ has said that "Rashdan was vilified and maligned in blogsphere".

The two main key players in MAS at the height of the MAS-AA share swap. Pic: AJ and En Mohamed Rashdan Yusuf aka Danny . AJ and his then “co-pilot” showing thump up for MAS-AirAsia share swap?. AJ has said that “Rashdan was vilified and maligned in blogsphere”.

The Malaysia Competition Commission (MyCC) said in a statement that the country’s two dominant carriers would each have to pay a RM10 million (US$3 million) penalty for collaborating to integrate some routes in which they had  earlier competed.

YAA Tan Sri Siti Norma Yakob, the former Chief Judge of Malaya .

YAA Tan Sri Siti Norma Yakob, the former Chief Judge of Malaya  and the first lady Judge holding high office in the judiciary. YAA Tan Sri Siti Norma Yaacob was the first woman judge in the High Court, Court of Appeal and Federal Court.

“When businesses agree to share markets, they are agreeing to stop competing, at the expense of the consumers,” said commission chairman YAA Tan Sri Siti  Norma Yaakob.

The Proposed Decision outlines the financial penalties to be imposed on both MAS and AirAsia on the basis of the turnover that were earned between 1st January 2012 and 30th April 2012 from their respective flights on the following four domestic routes:

  1. Kuala Lumpur-Kuching;

  2. Kuala Lumpur-Kota Kinabalu;

  3. Kuala Lumpur-Sandakan; and

  4. Kuala Lumpur-Sibu

Full report of MyCC in HERE.

Yours truly believes that the legal fraternity is very proud of you, YAA Tan Sri Siti Norma Yaakob. Yang Amat Arif  was the former Chief Judge of Malaya who has retired after 43 years of exemplary service in the Malaysian Judiciary.

Yours truly trust that AirAsia will not treat MyCC like what it did to MAHB by refusing to pay Airport Taxes to the tune of RM120 million and a 30% discount was given when payment was made more than 5 years later.

For background information on the MAS-AirAsia share swap and Competition Act 2010 and the top management of MAS has been warned of the possible violation of the Competition Act 2010 but AJ and his then deputy, En Mohamed Rashdan Yusuf aka Danny, the Khazanah nominee and the then Deputy CEO of MAS, chose to ignore in  HERE & HERE

On 14-3-2012 yours truly tabled a question in Parliament:

YB Tuan Wee Choo Keong [Wangsa Maju] ask the Minister of Consumer Affairs to state what is the progress of the investigations by MYCC into the secret MAS-AirAsia share swap / CCF, which clearly was against national interest, and whether MYCC is also taking actions against AirAsia for publishing misleading fares in its website with hidden charges like Telephone Enquires RM1.99 per minute, Convenience Fees RM8, Booking Fees RM30, Fuel Surcharge RM90,  Supersize Baggage up to RM150, Infant Seat Service Fees RM125, Sport Equipment up to 20 kg RM75 and etc which the Australian Competition & Consumer Commission (ACCC) has filed a court action against AirAsia in Australia?

The answer of the Minister in HERE.

En Ahmad Jauhari Yahya (AJ), the CEO of MAS, his then deputy or “co-pilot” (as AJ was fond of referring him as), En Mohamed Rashdan Yusuf aka Danny, Tan Sri Tony Fernandes, Datuk Kamarudin Meranun, Tan Sri Azman Yahya, who was also the director of AirAsia (as a nominee of Khazanah) after the notorious share swap and SCOMI fame must be held accountable for the fine of RM10 million imposed by MyCC.

En Mohamed Rashdan Yusuf aka Danny is the nominee of Khazanah and the former business partner of Tan Sri Azman Mokhtar in BinaFikir Sdn Bhd who is also the current MD of Khazanah.

At the height of the MAS-AirAsia share swap, AJ has also appointed PlaneConsult, which is the consultant for AirAsia, as the consultant for MAS.  Thereafter, AJ saw it fit to appoint the infamous Mr Shane Nolan of PlaneConsult as Commercial Director of MAS, a very powerful position in MAS, from January 2012 to 31 April 2012.  By co-incidence, Mr Connor McCarthy is the chairman of PlaneConsult, dealing with low cost airline, and the founder and director of AriAsia until now.

When Shane Nolan was the Director for Commercial, he has done many things that were detrimental to MAS in HERE, HERE & HERE

Yet, there were no actions taken against Shane Nolan. He was of course a protected species.

AJ also brought into MAS 8 “Bollywood and Hollywood stars” who had to rely on consultant to “tickle” their brains.  They are:

Dr Hugh Dunleavy

Dr Hugh Dunleavy. He was made redundant in Westjet

Dr Hugh Dunleavy,  Director of Commercial.  He was formerly from Westjet, a low cost airline, and was made redundant.  

Mr Shihaj Kutty. He is highly qualified in the aviation industry with the qualification of hotel Administration obtained in India.

Mr Shihaj Kutty. He is highly qualified in the aviation with the qualification of hotel Administration obtained in India.

Mr Shihaj Kutty, Head of Pricing, qualified in hotel administration in India.

Mr Duncan Bureau. He was from Westjet and was made redundant. Cheers to AJ!

Mr Duncan Bureau. He was from Westjet and was made redundant. Cheers to AJ!

Mr Duncan Bureau, Head of Sale & Distribution. He was, of course, also from Westjet, a low cost airline, and was made redundant.

Mr Dean Dacko. He was from Air Canada and was made redundant.

Mr Dean Dacko. He was from Air Canada and was made redundant.

Mr Dean Dacko, head of Marketing & Promotion. He was from Air Canada and was made redundant.

Mr John Felix, whose qualification is not known. Had to be another highly qualified aviation expert otherwise AJ wouldn't have appointed him.

Mr John Felix, whose qualification is not known. He had to be another highly qualified aviation expert otherwise AJ wouldn’t have appointed him.

Mr John Felix, head of MASholiday.

Mr Umesh Chibber

Mr Thomas Michael

Mr Bennet  Stephens

If anyone in MAS have the handsome photographs of the above 3 Bollywood stars please send them to your truly for posting for the sake of completeness.

For full details of AJ’s 8 “Bollywood and Hollywood stars” in HERE

MAS staffs should not be made to shoulder the responsibility for the RM10 million fine by MyCC because they were not parties to the MAS-AirAsia share swap and all the ill-advised decisions made by the top management of MAS at the material time.  In fact, the majority of MAS staffs were up in arms against the notorious MAS-AirAsia share swap, the brain child of a few irresponsible powerful officers of Khazanah and the decisions by the top management of MAS that were detrimental to MAS and in favor of AirAsia.  It was most unfortunate that MAS had to pay for the stupid decisions made by the top management of MAS.

Under the circumstances, the RM10 million fine imposed by MyCC and the RM9 million sponsorship of QPR could have been utilized by MAS to pay bonuses to MAS staffs.  It has been years that MAS staffs have not been paid bonuses.

WHO SHOULD BE HELD RESPONSIBLE FOR THE RM10 MILLION FINE?

Yours truly has received a note from one MAS staff who has responded from his heart over to the RM10 million fine.  Below is the excerpt:

Btw you wud have heard that MAS has been slapped with a RM10mill fine by MYCC for violating anti-competition rules during the Share Swap days.

This is outrageous! MAS was not even a willing party to the Share Swap, it was done clandestinely and forced down our throats.

When the Share Swap was still on, Tony F and Exco with Planeconsult has free access to all our sensitive market info. MAS did NOT share the info willingly, we were practically raped in our own home by these people.

The RM10mill fine should be paid by all those who SIGNED the Share Swap including the Chairman of MAS, since they did not do due diligence before signing the Share Swap. All the signatories to the Share Swap are multi multi millionaires, the RM10mill fine is chicken feed to them. But for us , the long suffering staff, this is huge and hard earned money.

Please help to expose this and to pressure those who signed the Share Swap to be held accountable.

Thank you.”

Ultimately, AJ as the CEO of MAS had to take full responsibility for the fine of RM10 million by MyCC.  But AJ’s tenure with MAS will expire in a week or so.  All eyes are looking at what Tan Sri Azman Mokhtar is going to do with the position of AJ in the light of the latest development of the RM10 million fine and all the decisions taken in MAS after the notorious MAS-AirAsia share swap.  But Tan Sri Azman Mokhtar is caught in the position of conflict of interest to part take in any decision to extend AJ’s contract as he was being accused as one of the architects of the notorious MAS-AirAsia share swap by virtue of his position as the MD of Khazanah.  It was Tan Sri Azman Mokhtar who signed the said notorious share swap agreement on behalf of Khazanah.  The development of the coming two weeks will be very interesting. Stay tune.

23 thoughts on “AirAsia & MAS were fined RM10 million each for violation of Competition Act

  1. Politics supersedes commercial realities?

    Is MAS strong enough to stand on it’s own without government support?

    How much in public funds has MAS consumed since it was set up post-MSA?

    Has there been an adequate return on these public funds used to support MAS?

    Can MAS (and KLIA) compete with the best out there?

    And which is more important to the Malaysian economy – making KLIA a premier regional air hub or keeping MAS afloat?

    It’s not as if the government has a bottomless purse and unlimited resources!

  2. Congratulation to the clueless AJ for putting MAS in such mess! AJ should appoint another consultant to help him to think whether be should pack up his belongings in MAS for screwing Up MAS. The shameless will hold on till the last second in the hope that his Master could help him to stay on to damage MAS further.

    Thai Airway kick out its CEO for poor financial result. If Thai Airway was fined for RM10 million they would not hesitate to throw the CEO into the longing. http://www.bloomberg.com/news/2012-05-31/thai-air-s-fired-ceo-says-profit-goal-easily-achievable.html

  3. That junkyard journalist BK Sidhu tried to play down AirAsia and MAS were fined by MyCC. She wrote: “AA and MAS are likely to be fined RM10 million each by MyCC for ALLEGEDLY breaching competition law when they collaborated under a share swap deal two years ago.”

    Imposition of the fine of RM10 million was evident that both companies were found guilty and sentenced. Understand junkyard Sidhu. Please go back to school if you cannot understand such simple English.

    Please read the finding in the MyCC’s website. AA and MAS have been found to have violated the Competition Law for “collaborating not to compete at the expense of the consumers”.

    She was still trying to do damage control for her pariah Master. The Star is a newspapers but the junkyard Sidhu was trying to make it to be the a Newsletter for AirAsia.

  4. Azman Mokhtar and Tony Fernandez should pay for MAS’ RM10 million fine. Tony F should also return back the QPR sponsorship money to MAS.

    By the way, why is MAS wasting money to advertise in Malaysian TV? Don’t bother. All of us who loves MAS will use MAS with or without TV advertisement. Newspaper advert shd only be done when they have sale.

  5. The finding of MyCC also showed that AJ was collaborating with Tony at the expense of the consumers period. AJ was appointed to turn around MAS but he is screwing up MAS big time. AJ you tak malu kah drawing RM250,000 salary a month plus perks and this was your performance. Just resign before the expiry of your contract to save you all the embarrassment. MAS staffs have no respect for him. In fact we only have “Ptui! Ptui! Ptui! for you and your shameless 8 Hollywood & Bollywood idiots.

    • Actually nothing wrong with the so-called Hollywood and Bollywood guys. Those who work with them attest to their know-how and in fact, many agree that they have learnt from these people. I am not defending them, but i am just calling a spade, a spade.
      Why don’t you open your eyes and mind wider, and look at the current Directors who have been in the airline for donkey years. From the fella in MasWings (his people call MW “main wayang”) to the two-faced guy in Firefly who sucked up to Tony F big-time, or to the guy in charge of Operations which recorded the lowest OTP in our history a few days ago, or the guy in Customer Service known for loving the sound of his own voice and is famous for conducting six hour meetings??
      Don’t reveal your narrow-mindedness with these kind of remarks, which by the way are also very rascist. I am ashamed that a fellow Malaysian speaks like this. We are known throughout the world for our tolerance for other races and living in harmony with all. What happened to you? Malu la

      • It is very easy to make general ingratiating statements in support of nincompoops. Why not you dole out some hard data that will attest to the efficacy of these redundant useless Bollywood and Hollywood fuckheads. Then we can see their real worth.

        As it is, all your silly claims of people of having learnt from them is simply hogwash. And you, Atticus, will do well to drink that hogwash than peddling it as some racist swill here. No one is twisting it into a race issue excepting you Atticus fuckhead.

  6. MAS and AirAsia should not be held responsible for the fine of Rm10 million each. The persons should be responsible are;

    Tan Sri Azman Mokhtar
    Tan Sri Tony Fernandes
    Datuk Kamaruddin Meranun
    Tan Sri md Nor Yusuf
    Rashdan (Danny the Nanny)
    Clueless AJ (the executor of the instructions)

    And of course, all the directors of AirAsia and MAS (after the share swap) must also be held responsible. Directors like Omar Ong, Tan Sri Azman Yahya, Tan Sri Wan Azmi, Datuk kington Tan, Datuk Lau should be made to personally pay for the fine of RM10 million because they allowed the pariah to dictate what should be done.

    These bloody lot together with the pariah and Azman Mokhtar should be shot for what they have done to the national airline. These are the bastards.

  7. The failure of MAS is largely attributable to AirAsia and Tony Pariah. The emergence of AA on the scene was accompanied by unprecedented government support by bodoh and sewel fuckheads like Abdullah Badawi and his ilk. Throw in scumbags like, Idris roti jala, Tengku Azmil and now AJ, no surprises as to why MAS is in the state it is in currently.

    Even in a socalled free market money laundering city state like Singapork, the aviation is a protected enclave of the national carrier SIA as no competitor is allowed access to the skies there without SIA control. Be it Scoot, Silk or Tiger, SIA hold a substantial stake in each with the first two being SIA spinoffs. In other words, there is no indigenous competitor and total gov support to keep SIA afloat.

    Contrast that with the recent experience of MAS, post 2003 and you will discover why it is in the doldrums now. Routes being stolen, the FAX scandal, implantation of scam con sultans via the swap deal, and many other shenanigans attest to MAS present state.

    The solution would the expropriation of AA and its absorption into MAS and Tony’s apprehension if evidence surfaces of his wrongdoings.

    AA’s future as a going concern is highly questionable. It’s core business is not making the desired profits capable of offsetting its humungous debt burden and increasing competition where none existed previously ( with the murder of MAS) is highlighting AA’s mediocre business model:

    http://centreforaviation.com/analysis/airasia-and-malaysia-airlines-declining-yields-point-to-challenges-as-competition-intensifies-124865

    It debt based business model is facing additional headwinds as most of its debts are denominated in US dollars. Its ambitious expansion plans have floundered in Japan and the Phillipines and its foray into India has failure written all over it even before its twice delayed launches

    http://www.business-standard.com/article/companies/airasia-may-miss-its-december-launch-target-113090700555_1.html

    and its questionable appointments

    http://www.indianexpress.com/news/airasia-india-noc-caught-in-ramadorai-s-status/1162146/

    Even Indonesia has offered slim pickings. Given the rising dollar, impending higher fuel costs, economic slowdowns in key markets, AA is a pig awaiting its fall from the skies given its high gearing. Any surprises to why investors are beating a hasty exit:

    http://www.thestar.com.my/Business/Business-News/2013/09/05/Wellington-Management-sells-AirAsia-shares.aspx

    and share prices of both AA and AAX have fallen like a stone.

  8. Storm

    Bravo! Good comments. Atticus was just polishing the Bollywood & Hollywood that needed consultant to tickle their pig brains all the times. No wonder they needed Seabury to chart the course for them and to justify their parasite existence.

    If they are that good that worth paying those fat salaries then the clueless AJ need not get Seabury in and pay Seabury million of RM.

    There are enough talents in MAS but this clueless AJ, a good friend of the pariah, dare not get local talents because he will be embarrassed.

    Do you all know that whenever he goes to meeting he will get that low cost brain Dr Hugh to hold his hands. What a useless CEO.

  9. Dare they admit responsibility and accountability to incriminate themselves thus opening themselves to open criticism? No way this will happen here bcos Malaysia Boleh!

  10. Why is AJ and his newly appointed Spin Doctor (with fat salary) are keeping quiet about the fine of RM10 million that MAS had to pay for no fault of MAS. The main culprit are Azman Mokhtar, Rashdan, Tony Fernandes, Datuk Kamarudin Meranun and AJ too. AJ played his role in the appointment of PlaneConsult as consultant that screwed up MAS, Shane Nolan as Director Commercial and the 8 Bollywood & Hollywood.

    AJ should send out email to say that he was not the man that cut the Kuching & Sarawak routes to help AA or it was done when he was asleep like the Advisor of MAS. AJ cannot keep his silence after MAS being fined for RM10 million for what have been done when he is still the CEO. If AJ cannot explain please resign like his co-pilot Danny the Nanny.

  11. In view of the glaring facts involving the stopping of the Sabah and Sarawak routes by MAS and the fine of RM10 million, AJ’s positioning MAS is untenable. AJ has only one option left for him: Just resign and take responsibility if he is a man of conscience. If this happened to other airline AJ would have been given the boot the moment MYCC announced its decision last week.

    Thick skin and tiada maruah as he is, AJ will try to hold on until the last second. But who wouldn’t if you are paid more than RM200,000 a month salary plus other perks.

    There is no integrity left in AJ. Just leave MAS and join his friend airline, AirAsia. Just follow A l Ishal Ishak.

  12. When the Pariah snapped his fingers, AJ had to run and crawl to him. Hence, the irrational stopping of Sabah and Sarawak routes against internal staffs advice. The giving away of Sydney, Haneda routes to the Pariah. MAS terminated the Dubai route in order to give way tot he Pariah but fortunately Dubai authority told the low caste to FO! Now MAS had to reinstate Dubai after one year break. Dubai is going to be disastrous now because Emirate is flying 4 flights daily.

    Routes are assets to airline but not to the clueless AJ. How can he still carry on as CEO with such scandalous decisions that were detrimental to MAS? As a result of his scandalous decisions, MAS had to pay RM10 million fine.

    AJ had done the most damage to MAS for the benefits of the Pariah then any other CEOs before him. Idris jala sold assets to shore up profits but he didn’t play balls with the Pariah. He banned the Pariah from flying MAS.

    AJ, Don’t wait until 19 September for your contract to expire, just FO now. Your existence is a burden to MAS.

  13. Fines….Payments……Sacking……

    Lets see some real action, prosecution & tangible consequences. Otherwise, corporate Malaysia & authorities will be seen as a joke to the world business community.

    Until then, these fines are just pure……wayang kulit.

  14. Padan muka to AJ. He was so daring to fight MAS staffs and the nation to help Tony/AirAsia at the expense of MAS. At the same time he is drawing RM250k per month. What a waste of fund to MAS. What should MAS being him so much for him to damage MAS for the benefit of Tony.I will go as far as to say that Aj has committed an economic sabotage against MAS. AJ must be out of MAS if possible tomorrow. I believe that after the Rm10 million MyCC fine, he has lost whatever little respect he has got from the staffs. Just FO you clueless bast..d!

    You are good at trying to screw your own staff by tracking us. If you were to track yourself, God know how many times you have been calling Tony and how many times you have been seen with Tony. You know what you have done. We also know what you have done. Just go and go now.

  15. Jangan lah guys. Baru last Friday happy happy dgn Fiesta Raya, nyanyi nyanyi
    and makan makan. I think HR got second place for best booth. I wonder if they got first place for en masse promotion.

  16. What is the point of the increased load factor at the same time the yield dropped. Yield is the incone. Load is fir the clueless management to appreciate. But the clueless AJ will be using ti justify his exustence with salary of RM200k.

    On the otherhand we shoukd know that the
    Hollywood Dr Hugh and his gang are from
    Westjet a low cost airline like AJ’s friend AirAsia. What do the Hollywood & Bollywood know about legacy airline. They are just collecting their buta gaji and appointing consultants to tickle their balls. Then they will tell the staffs that it was all their ideas. What a bullshit! They are just a bunch if linkumpup!

    AJ is doing a good job fir his good friend Tony.

  17. Now Amok and his gang can no longer hide. AJ is the runnibg boy carrying intructions blindky or knowingly. Nevertheless AJ as clueless as he is, he must accept all responsibility for all his decisions that he has made against the interest of MAS for the Pariah.

    No wonder that Botak in engineering is unshakeable. AJ had to keep the Botak there to take care of the Pariah aircraft when they come in for maintenance/service. We are watching you AJ. You track us and we track you too. We have YB’s blog to expose you and your macai in MAS like the Botak and the Fat Biscuit Lady. And a few others. AJ, catch us as you can. You can never becos we are looking after the interests of MAS but you are not. Just get out before it is too late. You remember your co-pilot Danny the nanny. He had to leave in disgrace. You moving into the same direction.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s