AirAsia sues airport operator for RM409 million over losses at klia2, LCCT

AirAsia Berhad is suing MAHB for losses and damages resulting from various problems at klia2 and LCCT. – The Malaysian Insider filepic, July 31, 2015.

AirAsia Berhad has served a letter of demand to airport operator Malaysia Airports Holdings Berhad (MAHB) for losses and damages as a result of its operations at the new budget terminal klia2 as well as from the earlier low-cost carrier terminal (LCCT) in Sepang.

The low-cost carrier is also suing MAHB subsidiary Malaysia Airports (Sepang) Sdn Bhd. It is seeking RM409 million in damages, the budget airline said in a statement today.

AirAsia's letter of demand said that MAHB had breached its contractual duties which caused the company to suffer damage to its branding and reputation.

It caused negative public perception that the failings at klia2 were supposedly within AirAsia's control by virtue of it being the single largest operator in the low-cost carrier airport.

Klia2 had been riddled with issues even before it was opened, including the ballooning of its costs from the initial RM1.7 billion to RM4 billion.

It continued to be plagued by "ponding" issues – the pooling of water on the runway – and a bumpy taxiway, as well "sinking" parking bays.

These problems had happened despite soil treatment works being done during construction, AirAsia said.

AirAsia group chief executive officer Tan Sri Tony Fernandes had previously criticised MAHB and the Transport Ministry for problems at klia2.

His latest outburst was on Monday when he took to Twitter to say that the sinking of klia2 should not have happened.

He had also hit out at MAHB, saying that its response to the sinking was "ridiculous", and urged the airport authority to improve itself.

AirAsia CEO Aireen Omar had earlier this week told Bloomberg that klia2 was sinking, with cracks appearing in the taxiway and water forming pools that planes had to drive through.

She warned that the defects could cause flight delays, increase wear and tear on planes and pose potential safety risks.

Bloomberg had reported that although take-offs and landings have not been affected, AirAsia, which is the terminal's biggest user, had asked Malaysian authorities to fix the problems before any untoward incidents happened.

- TMI