MAS airline turn to Airasia.

According to The Star paper, MAS is doing share swap with Airasia. Airasia will get 20% stake in MAS. Airasia is twice the size of MAS in terms of market capitalization. So, after the deal, MAS will own Airasia 10% and Airasia will own MAS 20%

Seeing the regular turn over of CEO in MAS, MAS still unable find firm solution to turn their business into rock solid profitable business. MAS again slip into massive loss after a reasonable profit in last quarter. Such a volatility of earning not only makes shareholders uneasy, but also government worry.

The deal with Airasia seems like MAS last resort, they seems to have no more capable candidate and have no choice but to 'humbly' ask their long time enemy or competitor for cooperation (or help?). With the back of government as usual, Airasia has to accept the deal. To the public, the deal is explained in a very beautiful story, but the real story behind, only Airasia know.

But with the brilliant of Airasia management teams and energy and charisma of Tony Fernandes, i think integration can be done and benefit of cooperation story will eventually come true, thus the future of Airasia still looks bright.

Although I am always poor at short term trading, I bet MAS is better for short term trading.