Court reinstates RM10m fine each on MAS, AirAsia

The High Court in Kuala Lumpur today reinstated the fine of RM10 million each to national carrier Malaysia Airlines and budget carrier AirAsia for flouting competition requirement.

Justice Nordin Hassan in his ruling today said the decision made by the Competition Appeal Tribunal two years ago to set aside the fine was tainted with error.

"Hence the court orders that the earlier decision made by the Malaysian Competition Commission (MyCC) be reinstated and the fine be paid," he said.

Justice Nordin, however, did not determine a time frame for the both airlines to pay up.

He however ordered MAS and AirAsia to pay RM10,000 costs each to MyCC.

Earlier in his decision, Justice Nordin also ruled that the commission had the locus standi (legal standing) to file the judicial review.

This is despite MAS and AirAsia arguing that there was also the existence of Malaysian Aviation Commission (Mavcom).

"The action was taken by MyCC before the formation of Mavcom in 2014. Hence, the court is of the view that MyCC has the locus standi to initiate this judicial review proceeding," the judge said.

MyCC CEO Iskandar Ismail (photo, left) welcomed the decision made by the High Court, as it was in line with the commission's task in ensuring fair competition.

"The decision today clears all doubt about whether the two airlines are required to pay the fine.

"Although the court did not determine when the fine should be paid, but the airlines have to pay nonetheless," he said.

It was previously reported that the tribunal had on February 2016 set aside the decision made by the commission to impose the fine of RM10 million each on MAS and AirAsia.

That decision was announced by Hasanah Mohamed Hashim (now Court of Appeal judge) who led the tribunal. Other members on the tribunal were Chief Judge of Malaya Haidar Mohamed Noor, Sulaiman Mahbob, Lin See-Yan and Wan Liza Md Amin.

The fine was imposed by the commission on March 31, 2014, after it found that MAS and Air Asia violated the prohibition against market sharing agreement under Section 4(2) (b) of the Competition Act 2010.

This section prohibits the formation of any anti-competitive agreement.

Lawyer Lim Chee Wee appeared for MyCC while Logan Sabapathy appeared for MAS and Leonard Yeoh for Air Asia.

Yeoh said he is disappointed with the decision, and that he has received instructions to appeal the matter at the Court of Appeal. - Mkini