A merger of Malaysian Airline System (MAS) and AirAsia Bhd will enable the two entities to compete in the global arena.

                                    

Second Finance Minister Ahmad Husni Hanadzlah said, the move should be viewed in the long term, including the co-ordination of services to face global competition, especially from Middle East nations.

husni eon bank function 120310 ahmad husni "The major oil producers are giving stiff competition because their airlines can afford to offer cheaper tickets, as compared to other airlines in the world.

"We believe, based on the collective experiences of MAS and AirAsia, their strengths could then be focused on further firming up the two entities.

"Through a merger, MAS, which was burdened with escalating operational costs, could be restructured," he said after visiting a Mydin supermarket project in Kampung Manjoi in Ipoh today.

On the national carrier's shares, Ahmad Husni said, they would not be sold to outsiders.

MAS workers union raises concerns

Meanwhile, the Malaysian Airlines System Employees Union today asked its new management to consider all staff-related issues before making any significant change in the administration of Malaysia Airlines.

MASEU president Alias Aziz said the share swap between MAS and AirAsia had raised concerns that the strategic alliance could lead to retrenchments.

However, he said, the employees were relieved to receive the assurance of  Prime Minister Najib Razak that there would be no retrenchments.

Alias said the union was worried that the new management would not provide any benefits to about 20,000 MAS employees worldwide.

"We do not want a situation where 30 to 40 new faces are brought in by the new  management, causing no promotion for existing employees," he told reporters at his office in Subang Jaya.

He hoped that new managers would be chosen from among MAS employees who know the airline and understand the industry.

"MAS has the world's best cabin crew while AirAsia is good in business strategies. I hope they can work together for the good of the national airline industry," he added.

- Bernama