Saturday February 25, 2012

Fomca wants AirAsia’s share swap investigated

PETALING JAYA: The Federation of Malaysian Consumers Associations (Fomca) has submitted a complaint against AirAsia Bhd to the Malaysian Competition Com-mission (MyCC).

Fomca chief executive officer Datuk Paul Selva Raj said it wanted MyCC to investigate whether the share swap between AirAsia and Malaysia Airlines had resulted in more expensive air fares.

“Travellers want the commission to provide more information about their agreements and whether it might leave air travellers financially affected,” Selva Raj said after submitting the letter of complaint to MyCC at the lobby of Wisma Glomac 3 yesterday.

“The commission should further investigate if the sharing of routes between the two airlines might reduce competition in the sector,'' he added.

Selva Raj said that through the Malaysian Competition Act 2010, enforced since Jan 1, consumers should be able to enjoy lower prices and more choices.

However, the collaboration had created a lack of competition, he said.

“This has led to consumers having to deal with higher prices, fewer flight options as well as a decrease in AirAsia's service quality,'' Selva Raj claimed.

In addition, the termination of Firefly flights to East Malaysia and the recent cancellation of AirAsia flights to London, Paris, Mumbai and New Delhi had caused a lot of discontent, he added.

Selva Raj's impromptu press conference at the lobby was cut short and had to be continued outside after security guards said Fomca did not have permission to hold the event there.

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