27 June 2019
Malaysia’s High Court has dismissed applications made by AirAsia and AirAsia X seeking a judicial review of the Malaysian Aviation Commission’s (MAVCOM) decision not to mediate a dispute between the carriers and Malaysia Airports (MAHB).
Both carriers acknowledged that their application was dismissed “with no costs,” and they will review the decision with their legal counsel.
The judicial review application was made in mid-May, with the airlines arguing that MAVCOM “has a statutory duty to decide on the dispute once mediation between parties has failed, or is deemed to have failed”.
The dispute was first sparked in December, when MAHB filed a MYR36.4 million lawsuit against the airlines the month before for failing to remit higher passenger services charges since 1 January 2018.
That was followed by a MYR480 million counter-claim by AirAsia and AirAsia X against MAHB relating to economic losses and poor service levels at the klia2 terminal it operates from at Kuala Lumpur International airport.
A subsequent mediation offer made by the airlines to MAHB was rejected by the airport operator.
AirAsia Group chief executive Tony Fernandes has repeatedly complained about high charges and poor infrastructure at the klia2 terminal. The airline has resisted a regulatory ruling that it should pay the same passenger charges as airlines using the main terminal at KLIA, arguing that the terminal is a low-cost facility and should be charged as such.
MAHB maintains that klia2 is not a low-cost terminal and provides more capacity at the airport.