AirAsia files RM480mil claim against MAHB unit

  • Business
  • Saturday, 05 Oct 2019

PETALING JAYA: AIRASIA Group Bhd has filed a claim against Malaysia Airports Sepang for losses and damages suffered by the carrier.

In a statement, AirAsia said itfiled the RM479.78mil claim at the Kuala Lumpur High Court against Malaysia Airports (Sepang) Sdn Bhd (MASSB), a unit of MALAYSIA AIRPORTS HOLDINGS BHD (MAHB).

The claim against MASSB, which is a wholly-owned subsidiary of MAHB, is for losses and damages suffered by AirAsia and its sister airline AirAsia X Bhd due to the negligence in the management, operation, maintenance and provision of airport services and facilities at klia2.

MASSB is responsible for managing and operating Kuala Lumpur International Airport (KLIA) and klia2.

“AirAsia and AirAsia X had earlier sought mediation by the Malaysian Aviation Commission (Mavcom) on their dispute with MASSB, in accordance with Sections 74 to 78 of the Mavcom Act.

“Despite this, Mavcom refused to mediate, and a subsequent attempt by AirAsia to seek a judicial review of Mavcom’s inaction was dismissed, ” said AirAsia in a statement yesterday.

AirAsia Bhd chief executive officer Riad Asmat, and AirAsia X Bhd chief executive officer Benyamin Ismail said they had no choice but file the claims.

“We did not want to do this but Malaysia Airports and Mavcom have forced our hand.

“Despite our best efforts to settle this matter amicably and through the right channels, we feel compelled to file this claim as we were left with no other recourse to protect our interests.

“This dispute all started when Malaysia Airports filed a civil suit against us over Passenger Service Charges (PSC), after rejecting our offer to go for mediation.

“We have always been open to resolving issues with our partners constructively, and we still contend that Malaysia Airports was heavy-handed in filing the suit, ” read the statement.

Previously, both AirAsia Bhd and AirAsia X Bhd said they will appeal against the High Court ruling which required them to pay the outstanding PSC to MASSB.

However, in August, the low-cost carrier said it will collect the increased PSC levied by MAHB under protest.

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