AirAsia claiming RM480m damages from MAHB

31 Jan 2019 / 15:01 H.

PETALING JAYA: The legal tussle between AirAsia Group Bhd and Malaysia Airports Holdings Bhd (MAHB) continues to intensify with AirAsia filing another suit claiming nearly RM480 million for losses incurred from operating at klia2.

The notice was served on MAHB’s wholly owned subsidiary Malaysia Airports (Sepang) Sdn Bhd (MASSB) yesterday, according to AirAsia’s statement.

AirAsia listed its losses totaling RM479.78 million, mainly due to the loss of customers in the last four years, owing to disruptions and poor condition of the terminal.

In the notice to commence mediation served on MASSB, AirAsia and its long-haul affiliate AirAsia X Bhd said MASSB had 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 AirAsia X are jointly seeking mediation in accordance with Section 74 of the Malaysian Aviation Commission (Mavcom), which requires the dispute to first be resolved in good faith through mediation. Under the act, if mediation fails, Mavcom will arbitrate the dispute.

Both AirAsia and AirAsia X are hoping to settle the issue amicably and had refrained from filing a counterclaim in court to pursue mediation, as required by the Mavcom Act.

Nonetheless, they reserved their rights to exhaust all avenues to recover the losses they have incurred, including the option to seek redress in the courts of law.

Recall that last week, AirAsia and AirAsia X Bhd filed a counterclaim seeking over RM400 million from MAHB in relation to the suit filed against them over the passenger service charges collection.

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