14 February 2022
The High Court has set April 6 to deliver its decision on Malaysia Airports Holdings Bhd (MAHB)’s application to strike out a RM479.78 million suit filed by Capital A Bhd (formerly known as AirAsia Group Bhd) and AirAsia X Bhd (AAX) against the airport operator.
Capital A and its long-haul affiliate AAX are suing MAHB’s wholly-owned unit Malaysia Airports (Sepang) Sdn Bhd (MASSB) for loss and damages due to negligence at Kuala Lumpur International Airport’s second terminal (klia2).
MASSB is responsible for managing and operating KLIA’s main terminal and klia2.
Judicial Commissioner Datuk Mohd Arief Emran Arifin presided over the matter, MAHB’s counsel Eric Gomez told theedgemarkets.com when contacted.
He however, did not elaborate on the grounds for their application.
theedgemarkets.com had applied to sit in on the hearing but its application was denied.
On Oct 4, 2019 the two carriers filed the suit claiming the amount from MASSB, “being loss and damage caused by negligence on the part of MASSB, its servants or agents in the management, operation, maintenance and provision of airport services and facilities at klia2″.
In a statement then, AirAsia CEO Riad Asmat and AAX CEO Benyamin Ismail said that the two airlines did not want to file the suit, but Malaysia Airports and the Malaysian Aviation Commission have forced their hand.
“Despite our best efforts to settle this matter amicably and through the right channels, we feel compelled to file this claim, as we were left with no other recourse to protect our interests,” they both said.
“This dispute all started when Malaysia Airports filed a civil suit against us over Passenger Service Charges (PSC), after rejecting our offer to go for mediation. We have always been open to resolving issues with our partners constructively, and we still contend that Malaysia Airports was heavy-handed in filing the suit,” they said.
It was previously reported that the High Court Justice Datuk Azimah Omar, had in July 2019, ordered AirAsia to pay RM40.6 million in owed PSC charges, after it dismissed the carrier’s striking out application and entered a summary judgment on the airlines.
Source: www.theedgemarkets.com
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