Analysts: Statement on Mas-airasia to boost staff morale

PETALING JAYA: Analysts are neutral on the statement released by Malaysia Airlines (MAS) on the cooperation between MAS and Airasia Bhd but say that it is a way to boost staff morale in the wake of the former employees’ complaints against the collaboration between both airlines.

“The statement is awordof encouragement to boost morale and shows management’s commitment to change,” said OSK Research analyst Ahmad Maghfur Usman.

In the statement released to Bursa Malaysia, MAS chairman Tan Sri Md Nor Yusof, on behalf of the airline’s board of directors, said themasboard was standing firm behind the cooperation with Airasia as well as the share swap between Khazanah Nasional Bhd and Tune Air Sdn Bhd and had asked that the deal be given a chance to work.

“The board is confident that the comprehensive collaboration framework (CCF), which involves a share swap between Khazanah and Tune Air, a collaboration agreement between Malaysia Airlines, Airasia and Airasia X, and a restructure of the Malaysia Airlines board and management team, will benefit both MAS and Airasia by promoting synergies in many areas.

“Already, we are in the process of setting up joint-venture companies for procurement and training and a potential maintenance service provided by malaysia airlines engineering for the Airasia fleet,” Md Nor said in the statement.

Earlier reports had it that malaysian Airlines System Employee’s Union (Maseu) had met with Prime Minister Datuk Seri Najib Tun Razak to express its resistance with regards to the CCF involving a share swap between Khazanah and Tune Air.

Recall in August, Khazanah took up a 10% stake in Airasia, while Tune Air, the investment vehicle of Airasia founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, bought a 20.5% stake in MAS.

Apart from the share swap, a collaboration agreement was signed simultaneously by MAS, Airasia and Airasia X, which would effectively see MAS concentrate on being a fullservice premium carrier, Airasia on being a regional low-cost carrier and Airasia X, a medium-to-long haul low-cost carrier.

“I would like to be very clear in stating that the share swap is not part of the acute financial problems at Malaysia Airlines, it is part of the solution.

“Likewise, the collaboration agreement between Malaysia Airlines and Airasia is not part of the acute financial problems at Malaysia Airlines. It is part of the solution,” saidmdnor in the statement.

Meanwhile, another analyst with a foreign brokerage said he remained neutral on MAS releasing the statement.

“I need to see what happens next at the airline before commenting,” he said.

Masrecordeda netlossofrm2.5bil in 2011.