MAHB rejects overture by AirAsia for mediation

SEPANG, 6 February 2019 - Malaysia Airports Holdings Berhad (MAHB) has rejected AirAsia’s offer of mediation, in a letter sent by the airport operator’s lawyers.

AirAsia had proposed mediation to MAHB in an attempt to amicably resolve the parties’ ongoing dispute over passenger service charges at klia2. The Mavcom Act requires AirAsia and MAHB to first seek mediation before resorting to other legal proceedings, in order to potentially save time and costs for all parties involved, including the judicial system.

AirAsia therefore acted in good faith to comply with the Act and prevent further public discourse which it believes is damaging to the aviation sector.
AirAsia further believed that regardless of the outcome, mediation would allow both parties to move forward in a more informed manner.

AirAsia Malaysia CEO Riad Asmat said, “We regret that MAHB has refused AirAsia’s olive branch to resolve outstanding issues between us through mediation, particularly in light of MAHB’s recent statement that it is ‘optimistic that these matters can and will be resolved’.

“We will seek guidance from Mavcom on the next steps to address this situation. However, we reserve our rights to take all necessary actions to protect the interests of our guests and shareholders.”