Business Local

AirAsia Berhad counter-claiming RM400m from Malaysia Airports

Syndicated News
Written by Syndicated News

SEPANG — Jan. 23, 2019: AirAsia Berhad is seeking more than RM400 million in counter-claims against Malaysia Airports Holdings Berhad (MAHB) in response to a suit filed by the airport operator last month over airport taxes.

The airline said the counter-claims are for losses and damage experienced by AirAsia and its long-haul sister airline AirAsia X due to operational disruptions at the Kuala Lumpur International Airport 2 (klia2).

The disruptions included a ruptured fuel line, which impeded operations at Pier P for more than a month, and closures at Runway 3 on numerous occasions last year.

Losses were incurred due to additional aircraft towing requirements and fuel costs, delays, manpower involved, flight cancellations resulting in loss of revenue and taxiing costs, said the company.

Last month, MAHB’s subsidiary, Malaysia Airports (Sepang) Sdn Bhd., sued AirAsia and AirAsia X for RM9.40 million and RM26.72 million respectively for alleged passenger service charge (PSC) arrears.

The PSC, paid by departing passengers, is collected by the airlines upon the purchase of tickets. It is passed on to MAHB on completion of a flight.

AirAsia and AirAsia X had applied to strike out MAHB’s suit on grounds that it was misconceived and premature as MAHB had not complied with the statutory provisions for dispute resolution within the Malaysian Aviation Commission (Mavcom) Act.

According to AirAsia, Sections 74 to 78 of the act state that both MAHB and airline operators have a statutory obligation to mediate any dispute regarding any matter under the act and that legal action may only be used as a last resort after mediation and dispute resolutions efforts have failed. — Bernama

Comments

comments

About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.