Opposition from the Malaysia Airlines Bhd (MAS) workers’ unions and the negative public perception are among the factors for the termination of the agreement on the share swap between MAS and AirAsia (Tune Air).

Prime Minister Najib Abdul Razak said since the implementation of the share swap, several MAS workers’ unions did not give their cooperation to the MAS management and had opposed several efforts for drastic changes that were important for the recovery of the airline.

Najib, who is also the finance minister, said this in his written reply to a question from Hee Loy Sian (PKR-Petaling Jaya Selatan) who wanted clarification on the outcome of the investigation by the Securities Commission on the share swap agreement and the factor that led to the termination of the share swap.

The prime minister said the negative perception on the price collusion and the perception of antitrust practices had also resulted in a negative public perception on the share swap.

“This had placed pressure and distracted the focus of the MAS management on efforts to turn the company around.

“"Subsequently on May 2, 2012, Khazanah (Nasional Bhd) had agreed to terminate the share swap in order to give an opportunity to the MAS management to concentrate on efforts to achieve benefits of synergy that had been identified,” he said.

Meanwhile, Najib said the share swap agreement between the two companies was not subjected to investigation by the Securities Commission.

- Bernama