AirAsia and MAHB: It’s War in the Court!


23 January 2019


AirAsia Group Bhd is seeking more than RM400 million in counter-claims against Malaysia Airports Holdings Bhd in response to a suit filed by the airport operator last month over outstanding airport taxes.

The counter-claims are for losses and damages experienced by AirAsia and its long-haul sister airline, AirAsia X Bhd, due to operational disruptions at klia2.

MAHB had, in December last year, sued the low-cost carrier and AirAsia X for a combined RM36.11 million for unpaid airport taxes or passenger service charges (PSC) for international departures.



PETALING JAYA: Budget airline AirAsia Bhd seeks more than RM400mil in counterclaims against Malaysia Airports Holding Bhd (MAHB) in response to a suit filed by the airport operator last month over airport taxes.

The counterclaims were for losses and damages experienced by AirAsia and its long-haul sister airline, Air Asia X Bhd, due to alleged operational disruptions at Kuala Lumpur International Airport 2 (KLIA2), the airline said.

According to AirAsia, such disruptions included closures to Runway 3 on numerous occasions last year, a ruptured fuel line that impeded operations at Pier P for more than a month between October and November in 2016, as well as additional aircraft towing requirements and fuel costs, delays, manpower, and flight cancellations that resulted in taxiing costs and loss of revenue.

Riad Asmat and Benyamin Ismail, who are AirAsia and AirAsia X chief executive officers (CEOs) respectively, said the company has always been prepared to constructively engage with MAHB and its subsidiaries.

However, they added that the company reserved the right to exhaust all avenues in recovering losses and damages caused by MAHB’s “failure to carry out its duties as an aviation service provider”.

They said AirAsia has repeatedly communicated issues to MAHB but claimed that nothing was done to solve them.

AirAsia has also applied to strike out MAHB’s suit over outstanding airport taxes on the grounds that it was misconceived and premature.

Riad and Benyamin said that MAHB has not complied with the statutory provisions for dispute resolution within the Mavcom Act.

“It is regrettable that MAHB has chosen litigation for reasons best known to them.

“We will continue to adhere to the legislative provisions under the Malaysian Aviation Commission (Mavcom) Act 2015 and seek our claim through mediation,” they said in a joint press statement Wednesday.


KUALA LUMPUR (April 30): Malaysia Airports Holdings Bhd (MAHB) is taking legal action against AirAsia X Bhd (AAX), claiming the airline owes it RM34.88 million in outstanding airport charges, rent and late payment charges.

In a filing with Bursa Malaysia today, MAHB said its wholly-owned subsidiary Malaysia Airports (Sepang) Sdn Bhd has on April 27 filed a writ of summons and statement of claim at the Shah Alam High Court on AAX.

Despite numerous demands, the airport operator said AAX has refused and/or failed to pay the outstanding amount.

“The board is of the opinion that it is necessary for Malaysia Airports (Sepang) to pursue the civil suit to best protect its interest,” said MAHB.

“The civil suit is not expected to have any material impact on the financial and operational position of the company. Any further updates in respect of any material development will be made from time to time,” it added.

Source: TheEdgeMarkets


This entry was posted in Uncategorized and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s