AirAsia serves RM480mil claim on MAHB


AirAsia planes seen here on the KLIA tarmac. – Reuters

PETALING JAYA: AirAsia Group Bhd has served a notice on Malaysia Airports Holdings Bhd’s (MAHB) unit Malaysia Airports (Sepang) Sdn Bhd (MASSB), claiming almost RM480mil for losses incurred from operating at klia2.

In a statement, the low-cost carrier estimated its losses at RM479.78mil, the main portion coming from a loss of customers in the last four years owing to disruptions and the poor condition of the terminal.

In the notice to commence mediation served on MASSB, AirAsia and its long-haul sister airline AirAsia X Bhd (AAX) said MASSB provided a “poor level of service” at the terminal, resulting in losses and damage to the two carriers.

These include cancellations and loss of revenue from multiple runway closures, apron defects, damage to two aircraft due to malfunctions in MASSB’s infrastructure and sensors, a fuel line rupture at klia2 Pier P, Internet outages and loss of customers.

AirAsia and AAX are jointly seeking mediation in accordance with Section 74 of the Malaysian Aviation Commission (Mavcom) Act.

Under this procedure, the dispute must first be resolved in good faith through mediation. Under the Act, if mediation fails, Mavcom will arbitrate the dispute.

Both AirAsia and AAX said they hoped to settle the issue amicably and have refrained from filing a counterclaim in court to pursue mediation, as required by the Mavcom Act. Nonetheless, they reserved their right to exhaust all avenues to recover the losses they have incurred, including the option to seek redress in the courts of law.

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