MyCC finds AirAsia, MAS guilty, airlines to appeal fine

PETALING JAYA: The Malaysia Competition Commission (MyCC) has found both Malaysian Airline System Bhd (MAS) and AirAsia Bhd guilty of anti-competition practices, in a final decision on the case which will see each party fined RM10 million.
Both parties in separate filings with Bursa Malaysia said they are planning to file appeals with the Competition Appeal Tribunal, chaired by a High Court judge.
The appointment of the members of the tribunal is upon the recommendation of the minister and their appointments are made by the prime minister. Notable personalities on the panel include Westports Malaysia chairmanTan Sri Gnanalingam and former Bank Negara deputy governor Tan Sri Lin See Yan.
The Tribunal will have exclusive jurisdiction to hear appeals in respect of decisions made by the Commission relating to interim measures, infringements and non-infringements.
Both companies yesterday said they had received the notice of finding of infringement from the MyCC, as well as the commission's final decision.
"MAS has instructed its solicitors to lodge an appeal to the Competition Appeal Tribunal," MAS told the local stock exchange.
The airline added that they are committed to comply with all applicable laws, including competition laws, in their countries of operation.
Meanwhile, AirAsia said in a press statement that the group has reviewed MyCC's decision with its external counsel and the low-cost carrier will appeal against the decision to the Competition Appeal Tribunal, as well as apply for a stay of the decision.
"The appeal shall be filed within the 30 days as prescribed by the Competition (Appeal Tribunal) Regulations 2014," said AirAsia.
In its proposed decision issued on Sept 6, 2013, MyCC announced that the companies would be fined up to RM10 million each for infringing section 4(2)(b) of the Competition Act 2010 by entering into an agreement which saw the two airlines sharing markets in the air transport services sector within Malaysia.
The penalty is less than the maximum fine of 10% of the companies' respective worlwide turnovers between January and April 2012, the time of the infringement.
MAS' shares closed unchanged at 21 sen yesterday, with 22.26 million shares changing hands.
AirAsia's share price was up 2 sen or 0.9% to RM2.30, with 3.45 million shares traded.