Friday, September 20, 2013

Another Air Cargo Scandal in the Making as Asian Freight Bosses Suspended

Internal Investigation Reportedly Under Way after Anti-Competitive Fine
Shipping News Feature

MALAYSIA – According to local press, the five Senior Executives who make up the entire senior team of the cargo arm of Kuala Lumpur based low budget airline AirAsia and AirAsia X have, for the past two months, been suspended and placed under internal investigation over ‘alleged mismanagement’. AirAsia Cargo has won multiple industry awards, most recently in June picking up Air Cargo Week’s ‘World’s Best Customer Care Award’ for the third consecutive year.

Speaking earlier this year, AirAsia Cargo’s (now reportedly suspended) Regional Head, Sathis Manoharen, said that the group managed to grow tonnage by 47% in the first quarter of 2013 compared with the same period in 2012. Both AirAsia and AirAsia X were achieving double-digit growth in tonnage and yield.

Earlier this month, the Malaysia Competition Commission (MYCC) imposed a RM10 million fine each on AirAsia and Malaysia Airlines for anti-competitive behaviour by entering into a market-sharing agreement.