Malaysia

MAS, AirAsia appeal against RM10 mil MyCC fine to be known April 27

Three-member panel says time needed to consider case’s relevant issues before delivering verdict

Updated 5 years ago · Published on 19 Feb 2021 9:54PM

MAS, AirAsia appeal against RM10 mil MyCC fine to be known April 27
MAS and AirAsia’s case with Malaysia Competition Commission started in 2014 when the regulator found both had breached market-sharing prohibitions through their 2011 collaboration agreement. – Facebook pic, February 19, 2021

PUTRAJAYA – The Court of Appeal here today set April 27 to decide on Malaysia Airlines (MAS) and AirAsia Berhad’s appeal to challenge the RM10 million fine by Malaysia Competition Commission (MyCC) against both air carriers.

The date was fixed by a three-member panel comprising Judges Datuk Hanipah Farikullah, Datuk Lee Swee Seng and Datuk Indera Mohd Sofian Abd Razak in a proceeding conducted via  videoconference.

“We need some time to consider the issues in this case...it’s an important matter, so we need time to consider before making a decision. Therefore, we will deliver our decision on April 27 at 9.30am,” said Justice Hanipah after hearing submissions by the both air carriers and the commission.

Counsel Datuk Ambiga Sreenevasan acted for AirAsia while Logan Sabapathy represented MAS  and Datuk Lim Chee Wee appeared for MyCC.

When asked by Lim whether the decision will be delivered through videoconference or an open court, Justice Hanipah said it depends on the government’s policy.

“At the moment, the Court of Appeal is conducting hearings online, so we do not know what would be the situation of the country at the end of April. However, we will notify the parties whether the decision will be delivered via online or through open court,” he added.

The two air carriers are appealing against the December 2018 Kuala Lumpur High Court ruling which affirmed MyCC’s decision to impose a RM10 million fine each against AirAsia and MAS for breaching a market-sharing prohibition.

MAS and AirAsia’s case with MyCC started in 2014 when the commission found both airline companies had breached the market-sharing prohibition under Section 4(2)(b) of the Competition Act by entering into an agreement on sharing markets in the air transport services sector within Malaysia.

MyCC has the power to fine both airlines 10% of their global revenue for infringement of the Act, but imposed a far lesser penalty because they were “cooperative” during investigations.

The RM10 million fine by MyCC was based on flights by both AirAsia and MAS in the four months between January 1 and April 30, 2012 on the Kuala Lumpur-Kota Kinabalu, Kuala Lumpur-Kuching, Kuala Lumpur-Sandakan and Kuala Lumpur-Sibu routes. – Bernama, February 19, 2021

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