AirAsia serves notice on MAHB, seeks RM480 million in damages

SEPANG, 31 January 2019 - AirAsia today served a notice on Malaysia Airports (Sepang) Sdn Bhd (MASSB), a wholly owned subsidiary of Malaysia Airports Holdings Berhad (MAHB), claiming almost RM480 million for losses incurred from operating at klia2.

AirAsia listed its losses totalling RM479,781,285, the main part coming from loss of customers in the last four years, owing to disruptions and poor condition of the terminal.

In the notice to commence mediation served on MASSB, AirAsia Berhad and its long-haul sister airline AirAsia X Berhad said that 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 Berhad and AirAsia X Berhad 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 Berhad and AirAsia X Berhad said today that 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 reserved their rights to exhaust all avenues to recover the losses they have incurred, including the option to seek redress in the courts of law.