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

by weechookeong

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.

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  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 theAustralian 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. 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 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, Head of Sale & Distribution. He was, of course, also fromWestjet, a low cost airline, 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. 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.