Airasia serves notice on mahb for rm480m damages
Published on: Friday, February 01, 2019

PUTRAJAYA: AirAsia has served a notice on Malaysia Airports (Sepang) Sdn Bhd (MASSB), a wholly owned subsidiary of Malaysia Airports Holdings Bhd (MAHB), claiming almost RM480 million in damages for losses incurred from operating at Kuala Lumpur International Airport 2 (klia2). 

AirAsia attributed its losses of RM479,781,285, mainly from the loss of customers in the last four years due to disruptions and poor condition of the klia2 terminal.

In a statement on Thursday, the airline said the notice to commence mediation, jointly issued with AirAsia X, stated 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,” it said. 

AirAsia and AirAsia X are jointly seeking mediation in accordance with Section 74 of the Malaysian Aviation Commission (Mavcom) Act, which requires the dispute to first be resolved in good faith through mediation. 

Under the Act, if mediation fails, Mavcom will then arbitrate the dispute.

Both AirAsia and AirAsia X said 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. – Bernama


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