Court orders AirAsia to pay RM40 million to MAHB subsidiary

KUALA LUMPUR: Low-cost carrier AirAsia has been ordered to pay RM40.6 million to Malaysia Airports (Sepang) Sdn Bhd, a subsidiary of Malaysia Airports Holdings Bhd (MAHB), in unpaid passenger service charges (PSC) for six months last year.

High Court judge Azimah Omar made the order after dismissing the carrier’s striking out application and allowed summary judgments in three suits by MAHB to be entered against AirAsia.

“The court rules that under Section 46 of the Malaysian Aviation Commission Act 2015 the power to set charges lies with the Malaysian Aviation Commission (Mavcom) while Malaysia Airports (MAHB) is the body issued the licence to operate the airport. I am allowing Order 14 on all three cases,” The Edge Market reported Azimah as saying in her oral grounds.

A summary judgment under Order 14 is allowed when a defendant does not have any defence to the claim.

AirAsia has also been ordered to pay RM24,000 in costs for the three suits.

The outstanding PSC collection is due to AirAsia’s refusal to collect RM73 per person imposed by MAHB on international departures from klia2.

In its defence, AirAsia applied for MAHB’s lawsuit to be struck out, arguing that it is frivolous and an abuse of process.

Lawyer Lim Tuck Sun, who represented AirAsia, informed the court that he had instructions to file an appeal.

Counsel Shannon Rajan and Eric Gabriel Gomez appeared for MAHB.