AirAsia and Malaysia Airlines may have to delay finalising details of their collaborative agreement due to issues with MAS’ unionised workforce, OSK Research said.

AirAsia chief executive officer and MAS board member Tan Sri Tony Fernandes told reporters last week that details of the agreement would be finalised in a month.

This was, however, before MAS’ unionised workers kicked up a fuss again about the national carrier’s collaboration plans with AirAsia.

According to an online news portal, all eight of MAS’ unions have delivered an ultimatum that should MAS not rescind its collaborative agreement with AirAsia within two months, it will be faced with protests next month.

“As heated discussions intensify between the unions and management, we do not rule out the possibility of a strike, which will further cripple MAS,” OSK Research said in its note yesterday.

News of a possible strike by MAS’ workforce has an immediate impact on potential passengers of MAS as this creates fear of possible flight delays and cancellations, especially during the peak season for air travel in the fourth quarter.

“As such, we foresee that news of a proposed picket would benefit AirAsia and other carriers as passengers resort to flying on more reliable flight schedules,” the report said.

Meanwhile, Hong Leong Investment Bank analyst Daniel Wong wrote in his report that while the speed at which the new management team is working is heartening, it remains concerned on the success of the implementation of a turnaround for MAS.

Concerns were mainly over external factors such as the risk of a global slowdown and competitive pressure from full-service carriers and low-cost carriers alike.

Strong objections from MAS’ unionised workforce would also not help, it said.

Both research firms have maintained their “sell” call on the stock, with OSK Research having set its target price at RM1.15 and Hong Leong Investment putting it at RM1.19.

MAS shares closed 2 sen down yesterday at RM1.31.–BTimes