MAHB rejects AirAsia’s mediation offer

06 Feb 2019 / 14:46 H.

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has rejected AirAsia’s offer of mediation following a war of words between the two parties over the passenger service charge (PSC) dispute.

The rejection was made via a letter sent by the airport operator’s lawyers, according to AirAsia.

AirAsia had proposed mediation to MAHB in an attempt to amicably resolve the parties’ ongoing dispute over passenger service charges at klia2. This is given that the Mavcom Act requires AirAsia and MAHB to first seek mediation before resorting to other legal proceedings, in order to potentially save time and costs for all parties involved, including the judicial system.

“AirAsia therefore acted in good faith to comply with the Act and prevent further public discourse which it believes is damaging to the aviation sector. AirAsia further believed that regardless of the outcome, mediation would allow both parties to move forward in a more informed manner,” AirAsia said in a statement today.

However, AirAsia Malaysia CEO Riad Asmat said the group is regret that MAHB has refused AirAsia’s olive branch to resolve outstanding issues through mediation, particularly in light of MAHB’s recent statement that it is ‘optimistic that these matters can and will be resolved’.

“We will seek guidance from Mavcom on the next steps to address this situation. However, we reserve our rights to take all necessary actions to protect the interests of our guests and shareholders” he added.

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