AirAsia ordered to pay at least $9.9 million to Malaysia Airports
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The Malaysian High Court in Kuala Lumpur has ordered AirAsia and AirAsia X to pay operator Malaysian Airport Sepang (MA Sepang) MYR40.73 million ($9.9 million) in unpaid passenger service charges after ruling in favor of the national airport operator.
The LCC was also ordered to pay MYR972,381 and MYR24,000 for late payment and lawsuit fees, respectively.
In retaliation, AirAsia Group CEO Tony Fernandes took to Twitter and posted photos of beehives at the airport, as well as uneven parking aprons at Kuala Lumpur International Airport (KLIA) Terminal 2, known as KLIA2. Since moving to KLIA2 in 2014, AirAsia has been very unsatisfied with terminal design and facilities.
MA Sepang, a subsidiary of Malaysia Airports Holdings Bhd (MAHB) first sued AirAsia and AirAsia X in December 2018 for unpaid passenger service charges after the former raised the charges from MYR50 to MYR73. AirAsia refused to charge its passengers the increased rate as it said the facilities at KLIA2 were sub-standard. The LCC later countersued MAHB in January 2019 for losses and damages incurred by both airlines because of operational disruptions at KLIA2.
The High Court also dismissed AirAsia’s appeal against the Malaysian Aviation Commission for failing to mediate the issue between the two parties, as regulations stipulate.
“We will continue to fight the battle on behalf of all Malaysians and travelers to Malaysia,” Fernandes said in his posts, adding he hopes MAHB will act like a partner.
Questions & Answers
Q.What was the total amount AirAsia was ordered to pay Malaysia Airports?
What was the total amount AirAsia was ordered to pay Malaysia Airports?
AirAsia and AirAsia X were ordered to pay MYR40.73 million ($9.9 million) in unpaid passenger service charges. They also have to pay MYR972,381 for late payment and MYR24,000 for lawsuit fees.
Q.Why did AirAsia refuse to charge the increased passenger service fees?
Why did AirAsia refuse to charge the increased passenger service fees?
AirAsia refused to charge the higher fees because it claimed the facilities at KLIA2 were sub-standard. It has been unsatisfied with the terminal design and facilities since moving there in 2014.
Q.How did AirAsia's CEO respond to the court's ruling?
How did AirAsia's CEO respond to the court's ruling?
AirAsia Group CEO Tony Fernandes posted photos of beehives and uneven parking aprons at KLIA2 on Twitter. He stated AirAsia would continue to fight on behalf of Malaysians and travellers.
Q.What was the outcome of AirAsia's appeal regarding the Malaysian Aviation Commission?
What was the outcome of AirAsia's appeal regarding the Malaysian Aviation Commission?
The High Court dismissed AirAsia's appeal against the Malaysian Aviation Commission. AirAsia had argued the commission failed to mediate the issue between the two parties as stipulated by regulations.
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