AVIATION - SHARE SWAP

MAS, AirAsia set aside rivalry to form partnership

Malaysia's national carrier, Malaysian Airline System (MAS), and Airasia , have agreed to set aside their rivalry and work together after signing a share swap agreement, reported Reuters.

Based on the terms of the agreement, AirAsia's major shareholder Tune Air, controlled by its two principal founders Tony Fernandes and Kamarudin Meranun, will buy a 20.5 percent stake in MAS from MAS' major shareholder Khazanah Nasional
Khazanah will in turn buy a 10 percent stake in AirAsia from Tune Air, which is presently the single largest AirAsia shareholder with a 23 percent stake.

Khazanah will also buy 10 percent of AirAsia X, which is the unlisted long-haul arm of AirAsia.

MAS and AirAsia shares have been suspended since Monday.