MAS has on 6 September 2013 been served with a Notice of Proposed Decision by the Competition Commission of Malaysia pursuant to Section 36 of the Competition Act 2010.
The decision is premised on a alleged breach by MAS, AirAsia and AirAsia X of Section 4(2)(b) of the Competition Act 2010 in entering into the Comprehensive Collaboration Framework of 9 August 2011, an agreement that has as its object the sharing of markets in air transport services sector within Malaysia. The particular routes under scrutiny were the Kuala Lumpur-Kuching, Kuala Lumpur-Kota Kinabalu, Kuala Lumpur-Sandakan and Kuala Lumpur-Sibu routes.
As further provided under the Competition Act, a proposed financial penalty of RM10 million has been imposed on MAS representing an amount no more than 10% of MAS’s worldwide turnover over the period of the alleged infringement.
MAS will submit its written representation and indicate whether it intends to make an oral representation to the Competition Commission no later than 18 October 2013.
MAS is reviewing the proposed decision in consultation with legal counsel.
This announcement is dated 6 September 2013.