AirAsia seeks judicial review over disputes with MAHB

  • Business
  • Tuesday, 14 May 2019

KUALA LUMPUR: AIRASIA Group Bhd said its wholly owned unit AirAsia Bhd (AAB) and affiliate company AirAsia X Bhd (AAX) have filed a judicial review application to compel the Malaysian Aviation Commission (Mavcom) to adjudicate the disputes between the two airlines and Malaysia Airports (Sepang) Sdn Bhd (MASSB).

"The judicial review application was filed to essentially challenge the decision of Mavcom in declining to decide on the disputes between MASSB, AAB and AAX with regard to passenger service charges (PSC) and the poor level of service at klia2," AirAsia said in a statement today.

To date, there are several court actions that have been filed by MASSB against AAB and AAX for payment of outstanding PSC. MASSB is a unit of MALAYSIA AIRPORTS HOLDINGS BHD (MAHB).

AAB and AAX have disputed MASSB’s claims and have applied to strike out the actions as they are filed in breach of Sections 74 to 78 of the Malaysian Aviation Commission Act 2015.

Further, AAB and AAX have a claim against MASSB for damages incurred as a result of the poor level of service at klia2 amounting to RM479.78mil.

"AAB and AAX have taken steps to engage MASSB and Mavcom to have the disputes resolved through the statutory dispute resolution structure provided under the Mavcom Act but to no avail," it said.

The airlines, AAB and AAX ,have taken the position that under the Mavcom Act, Mavcom has a statutory duty to commence to decide on the said disputes once mediation between the parties have failed, or is deemed to have failed.



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