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Malaysian airlines: General Announcement

Direct News Source

14-Jun-2012 General Announcement

Reference No MA-120613-60836

Company Name: MALAYSIAN AIRLINE SYSTEM BERHAD

Stock Name : MAS

Date Announced: 14/06/2012

Type: Announcement

Subject: MATERIAL LITIGATION

Description : Malaysian Airline System Berhad ("MAS" or "the Company")
- Australian Competition and Consumer Commission ("ACCC") Air Freight Litigation Settlement

Announcement Details/Table Section :

On 14 June 2012, the Federal Court of Australia made orders consistent with an agreement between MAS, MASkargo and the Australian Competition and Consumer Commission (the "ACCC") to settle the Air Freight litigation. The settlement ends the ACCC's claims against MAS and MASkargo in relation to the alleged price fixing of surcharges relating to certain air freight services. MAS and MASkargo were served with a Statement of Claim by the ACCC on 9 April 2010, as announced to Bursa Malaysia on 12 April 2010.Under the terms of the settlement, MASkargo admits (for the purpose of the proceedings only) that it reached understandings with certain airlines regarding level of fuel surcharges from 2002 to 2005, security surcharges from 2001 to 2005 and customs fees from 2004 to 2005, to be applied in relation to the supply of services from Indonesia to Australia. MASKargo agrees to pay a penalty of AU$6 million and to contribute AU$500,000 to the ACCC's legal costs (approximately MYR20,500,000) in five instalments over 24 months. The settlement follows settlements by Qantas, British Airways, Air France/KLM, Cargolux, Martinair, Japan Airlines and Korean Airlines. It brings to an end the ACCC litigation against MAS and MASkargo, keeping legal costs to a minimum and allowing MAS to focus its full attention on further strengthening its business. MAS and its group companies are committed to complying with all applicable laws, including competition laws, in their countries of operation. Since the time of the events relating to the admissions in the Air Cargo Litigation, MAS and MASkargo have revised their competition compliance policies and training, to prevent any conduct that might be alleged to be in breach of any competition laws, further supporting a culture of compliance.