Business

Published: Tuesday March 13, 2012 MYT 11:45:00 AM

Transport Ministry unaware of reported cancellation of MAS-Air Asia share swap


KUALA LUMPUR: Transport Minister Datuk Seri Kong Cho Ha, is unaware of any cancellation of the deal, involving the share swap between Malaysia Airlines (MAS) and Air Asia.

It was reported that stiff resistance from MAS employees to the share swap had prompted Prime Minister Datuk Seri Najib Tun Razak to consider the option of unraveling the deal.

Kong said any decision on the issue would have to be made by the concerned parties together with Khazanah. "At this time, the ministry, has yet to receive any firm decision or information on the said report," he told reporters on the sidelines of the World Cargo Symposium, organised by International Air Transport Association (IATA).

On the cancellation of routes by airlines, he said, they have to inform the ministry each time there was a decision to cancel or add any routes to services. "Airlines must also settle all issues, including ticket sales first, before cancelling routes.

"Where they want to fly and how many times, additional destinations and routes cancellation, is a business decision of an airline. But each time they stop or add any routes, they have to inform us," he added.

Earlier, the minister witnessed the signing of a memorandum of understanding for the Secure Freight Programme between the IATA and the Department of Civil Aviation (DCA) Malaysia.

In his speech, Kong said MASkargo, the DCA, Malaysia Airports and IATA were working closely with other industry players to introduce the Secure Freight Programme. "Malaysia is the pilot country for the secure freight programme.

"The result of this close collaboration will benefit many industry players as it reduces the complexities and cost of air cargo security, as well as ensure that the supply chain of stakeholders works in the same direction," he added.

Kong emphasised that Malaysia is committed to working with the industry in not only reducing the various costs but also improve efficiency and facilitation of passenger and freight movement at all airports. - BERNAMA

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