Malaysia Airlines, AirAsia fined $3.9 million each over tie-up
KUALA LUMPUR (AFP) - The Malaysian authorities on Friday fined Malaysia Airlines and AirAsia for anti-competitive conduct during a short-lived tie-up.
The Malaysia Competition Commission (MyCC) said in a statement that the country's two dominant carriers would each have to pay a 10 million ringgit (S$3.9 million) penalty for collaborating to integrate some routes in which they had earlier competed.
"When businesses agree to share markets, they are agreeing to stop competing, at the expense of the consumers," said commission chairman Siti Norma Yaakob.
AirAsia, the region's largest budget airline, agreed in August 2011 to hand over a 10 per cent holding to a state investment fund in exchange for a 20.5 per cent stake in the ailing flagship carrier Malaysia Airlines.