AirAsia files claim against Malaysia Airports for $158 million

Darren Wood
By Darren Wood October 7, 2019 08:36

AirAsia files claim against Malaysia Airports for $158 million

AirAsia has filed a RM480 million ($158 million) claim at the Kuala Lumpur High Court against Malaysia Airports (Sepang) Sdn Bhd (MASSB), a unit of Malaysia Airports Holdings Berhad (MAHB).

The claim against MASSB is for losses and damages suffered by the group’s subsidiaries AirAsia Berhad and its long-haul sister airline AirAsia X Berhad caused by MASSB’s “negligence in the management, operation, maintenance and provision of airport services and facilities at klia2”.

MASSB is a wholly-owned subsidiary of MAHB 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) regarding its dispute with MASSB.

Despite this, Mavcom refused to mediate, and a subsequent attempt by AirAsia to seek a judicial review of Mavcom’s inaction was dismissed.

“We did not want to do this,” said AirAsia Berhad CEO Riad Asmat and AirAsia X Berhad CEO Benyamin Ismail. “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.”

Darren Wood
By Darren Wood October 7, 2019 08:36