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AirAsia seeks RM480 million in damages from MAHB

KUALA LUMPUR: AirAsia Group Bhd today served a notice on Malaysia Airports (Sepang) Sdn Bhd (MASSB), a wholly owned subsidiary of Malaysia Airports Holdings Bhd (MAHB), claiming almost RM480 million for losses incurred from operating at klia2.

In a statement today, the low-cost carrier said the losses incurred derived 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 Bhd and its long-haul unit, AirAsia X Bhd said 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 Bhd and AirAsia X Bhd 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 Bhd and AirAsia X Bhd hope to settle the issue amicably and had refrained from filing a counterclaim in court to pursue mediation as required by the Mavcom Act.

It noted that 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.

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