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Thursday, January 31, 2019

AirAsia seeks RM480 million in damages from MAHB

KUALA LUMPUR: AirAsia today served a notice on Malaysia Airports (Sepang) Sdn Bhd (MASSB) claiming almost RM480 million for losses incurred from operating at klia2.
MASSB is a wholly-owned subsidiary of Malaysia Airports Holdings Bhd (MAHB). The notice is to seek mediation over its claims, failing which it may take the matter to court.
In a statement today, AirAsia said it had listed its losses totalling RM479,781,285, with the main part coming from loss of customers in the last four years “owing to disruptions and the poor condition of the terminal”.
In the notice to commence mediation served on MASSB, AirAsia and its long-haul sister airline 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 said today they hoped 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 said, they reserved the right “to exhaust all avenues to recover the losses they have incurred, including the option to seek redress in the courts of law”.
The claim comes in reply to a suit against it by MAHB last month. On Dec 10 last year, MAHB, via MASSB announced it had filed a suit at the High Court against AirAsia and AirAsia X claiming a combined RM36.11 million in outstanding passenger service charges. - FMT

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