Shares of AirAsia Bhd declined as much as 3.9 percent on Thursday after it called off the US$364 million share swap deal inked with Malaysian Airline System Bhd (MAS) in August last year.

MAS saw its shares gain 0.82 percent, outperforming he Malaysian benchmark stock index that shed 0.09 percent as at 9.06am.

As part of the reversal of the deal, AirAsia's chief and founder Tony Fernandes and its deputy Kamarudin Meranun resigned from MAS' board, with MAS' director Mohamed Azman Yahya following suit from AirAsia's board.

But both airlines said they will continue to collaborate with signing of agreements for joint maintenance services and a special purpose vehicle to extract procurement synergies such as fuel oil, aircraft components and parts.

Reuters, citing two sources, reported on Tuesday that shares of MAS will be suspended from trading on Wednesday amid speculation that the national carrier's share swap deal with AirAsia will be canceled. -- Reuters