08 Aug '11, 8am

Budget airline AirAsia 'seeks control' of rival Malaysia Airlines (via ST iPhone App)

Budget airline AirAsia 'seeks control' of rival Malaysia Airlines (via ST iPhone App)

Fast-growing budget airline AirAsia is pushing for management control of loss-making rival Malaysia Airlines under a reported share swap, a source with knowledge of the deal said. -- ST PHOTO: LIM WUI LIANG KUALA LUMPUR (AFP) - FAST-GROWING budget airline AirAsia is pushing for management control of loss-making rival Malaysia Airlines under a reported share swap, a source with knowledge of the deal told AFP on Monday. Trading in the shares of national flag carrier Malaysia Airlines and Malaysia-based AirAsia was suspended on Monday following press reports that the swap could give the latter a 20 per cent stake in its rival. But AirAsia is arguing in ongoing talks that obtaining management control is 'the key' in the deal, which is reportedly aimed at turning around struggling Malaysia Airlines, said the source, an industry official who spoke on condition of anonymity. An a...

Full article: http://www.straitstimes.com/BreakingNews/Money/Story/STIS...

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