The decision taken by Malaysia Airlines and AirAsia Berhad to enter into an agreement on sharing local air transport services did not breach laws governing market competition, the Court of Appeal heard today. — Picture by Miera Zulyana
“Competition Act only came into force on January 1, 2012. At the same time when the collaboration agreement was entered, shares swap took place at the same time. The collaboration agreement was initiated by Khazanah, when MAS was having a problem at the material time. “As a matter of general principle, the law should not be applied but the commission argued even if you had entered into an agreement before the law came into force, the effect of the agreement carries on.
The hearing continues on February 5, during which MyCC’s lawyer Lim Chee Wee will reply to AirAsia and MAS’ submissions.