(Updated) AirAsia X denies not paying for services after airport operator sues

01 May 2018 / 16:26 H.

    PETALING JAYA: AirAsia X Bhd in a statement late on Monday said it has consistently made monthly payments to Malaysia Airports (Sepang) Sdn Bhd (MA Sepang), a subsidiary of Malaysia Airports Holdings Bhd (MAHB), the latest of which was made on Monday, after MA Sepang filed a suit against the airline for a sum of RM34.88 million.
    AirAsia X said it made a RM16.6 million payment to MA (Sepang) on Monday, the latest in a series of four payments it has made since February 2, 2018.
    "This is contrary to claims made in a Writ of Summons and Statement of Claim filed by MA (Sepang) that AirAsia X has refused and/or failed to fulfill outstanding payments," AirAsia X Malaysia CEO Benyamin Ismail said.
    MAHB is suing AirAsia X Bhd for outstanding airport charges, rent and late payment charges amounting to RM34.88 million pursuant to the relevant agreements entered into between the parties.
    The legal suit was taken after AirAsia X's failure to pay the outstanding sum despite numerous demands, according to the airport operator.
    MAHB told Bursa Malaysia Monday, that MA (Sepang) had filed the writ of summons and statement of claim against AirAsia X at the Shah Alam High Court on April 27.
    "The board of the company is of the opinion that it is necessary for Malaysia Airports (Sepang) to pursue the civil suit to best protect its interest," it stressed.
    AirAsia X remitted payments to MA (Sepang) on February 2, 2018, March 1, 2018, April 1 2018 and, most recently, a sum of RM16.6 million, despite the ongoing reconciliation process of reimbursement for losses incurred by the airline due to a fuel pipeline leak at klia2 in October 2016.
    Benyamin said, along with AirAsia Berhad, they have lodged numerous official complaints regarding dissatisfactory airport facilities and high charges in the past but MA (Sepang) has shown little to no interest in resolving the outstanding issues.
    In a separate filing, MAHB has filed for an application for leave to appeal at the Federal Court against the Court of Appeal's decision in relation to a RM43.99 million lawsuit by Syarikat Pembinaan Anggerik Sdn Bhd's (SPASB) in respect of the damages and losses pertaining to upgrading works for the Penang International Airport.
    On March 30, the Court of Appeal allowed SPASB's appeal against the High Court's decision which ruled in favour of MAHB.
    MAHB's shares remained unchanged at RM9.01, while AirAsia X gained 1.3% to 38.5 sen.

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