No more share swap for MAS-Airasia. What comes out of it?

The share swap deal is a deal only a merchant banker can create. It has no meaning, as the deal was created to create fees. So was it created, as CIMB has strong links to the government. After 9 months, the deal fell through. Instead of the share swap, both companies will form a JV company to buy aircraft, parts, oil and all other things in the name of economies of scale and saving some grace.

Now what does that mean after the 9 months?

1. Airasia has gotten the Sydney route that it wanted all these while;
2. Probably, after studying MAS books in detail, Tony and gang felt that it would be better off that they take their hands off from MAS's mess. MAS needs to raise additional equity funds. By shying away, Tune is better off not participating into it;
3. QPR (partly owned by Tony Fernandez) had acquired a new sponsor in the name of MAS - that they were looking for;
4. MAS gets messier and now we know how difficult it is to run MAS with the labor union etc;
5. The JV will not work - and if it works will probably benefits Airasia more.

So after the 9 months, what do we see? A result of poor planning for MAS survival as all the parties involved are only looking at what they can gain from MAS not how to save MAS, as always. I hope now CIMB is not thinking of merging MAS with Malaysia Airport Berhad as the income the latter gets does attract that thinking! It is probably the only way, financially and of course both CIMB and government can arm twist MAB to do that.