Advertising
  • News
  • Airlines
  • Finance
  • AirAsia, AirAsia X to appeal order to pay higher pax charges

AirAsia, AirAsia X to appeal order to pay higher pax charges

AirAsia and AirAsia X are planning to appeal an order from the Malaysian High Court to pay nearly MYR42 million ($10.2 million) in passenger service charges (PSC) and late payment charges to Malaysia Airports (MAHB).

The 18 July ruling states that both carriers will have to pay MYR40.7 million in unpaid PSCs, and MYR792,400 in late payment charges after applications by the carriers to strike out or seek a stay of proceedings in lawsuits filed by the airport operator were dismissed.

A declaration was also made for the airlines to pay MAHB the PSC rates that are gazetted in law.

Following the ruling, the AirAsia carriers stated that they plan to appeal against the decision.

"We will be taking the necessary actions to preserve our interests, including appealing against the said decision and applying for a stay of execution," they say in stock exchange disclosures.

The dispute relates to Malaysia equalising its passenger charges for Southeast Asian passengers departing from the main and KLIA2 terminals at Kuala Lumpur International airport since the start of 2018.

AirAsia and its long-haul affiliate have argued that as KLIA2 is a low-cost facility, it should not have to pay the same passenger charges as the main terminal. Regulator the Malaysian Aviation Commission (MAVCOM) , however, has repeatedly rejected that stance.

In December 2018, MAHB filed a lawsuit against the two airlines after they failed to remit the higher charges they was supposed to collect to the airport operator.

That was followed by a MYR480 million counterclaim by AirAsia and AirAsia X against MAHB in January, relating to economic losses and poor service levels at the KLIA2 terminal it operates from. A mediation offer made to MAHB in February was rejected, while attempts by the carrier to force MAVCOM to adjudicate have come to naught.

Advertising
Related Content
Advertising
What's Happening Around "AirAsia"