KUALA LUMPUR: Malaysia Airlines (MAS) and AirAsia Bhd inked a landmark deal yesterday that is set to reshape the aviation industry. By co-operating to leverage on their core strengths and expertise, the two carriers plan to lower competition and cut costs in the areas of aircraft purchases, engineering, ground support services, cargo services, catering and training.
As part of the deal, Tan Sri Tony Fernandes and Datuk Kamarudin Meranun of AirAsia will sit on the MAS board. Their company, Tune Air Sdn Bhd, via a share swap, will end up with 20.5% equity stake in MAS. There is a moratorium period covering the shares, but the details were not released yesterday.