Malaysia Airlines, AirAsia fined $3mln for anti-competitive behaviour.

Malaysia Airlines and AirAsia have been fined MYR10million (USD3million) by the Malaysian Competition Commission (MCC) for entering an agreement in 2011 aimed at sharing domestic route markets; a move that was found to be in breach of competition regulations. 

"When businesses agree to share markets, they are agreeing to stop competing at the expense of the consumers," Siti Norma Yaakob, chairman of the body, said. The agreement, which was to have involved a MYR364million share swap, fell through in May 2012. 

While Malasyian Airlines has said it is seeking legal advice prior to any counter-move, AirAsia said it would fight the ruling claiming it had taken the necessary steps to ensure the tie-up complied with all aspects of Malaysian law.

Source: CH-Aviation