What led to the court battle between MAHB and AirAsia over PSC?

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The Court Battle Between MAHB and AirAsia Over Passenger Service Charge (PSC) Was Triggered by AirAsia's Refusal to Collect Imposed Taxes

The conflict between Malaysia Airports Holdings Bhd (MAHB) and AirAsia regarding the Passenger Service Charge (PSC) escalated into a protracted court battle due to AirAsia's refusal to collect the RM73 PSC that the Malaysian Aviation Commission (Mavcom) had levied on non-Asean flights specifically at KLIA2. This refusal by AirAsia directly initiated the legal dispute.
AirAsia's Non-Collection of Mavcom's PSC

The core of the legal confrontation stemmed from AirAsia's stance against collecting the RM73 PSC. Mavcom had imposed this charge on passengers travelling on non-Asean routes departing from KLIA2. AirAsia's decision not to implement this collection was the catalyst for the subsequent legal proceedings initiated by MAHB.
Escalation to Legal Action

Following AirAsia's refusal to collect the mandated PSC, MAHB proceeded to take legal action. This protracted court battle signifies a significant disagreement over the application and collection of airport taxes, particularly concerning international travel originating from KLIA2. The dispute highlighted differing interpretations or objections to Mavcom's directive.
Impact on AirAsia's Operations and Low-Cost Carrier Status

AirAsia Group Bhd co-founder and executive chairman Datuk Kamarudin Meranun later articulated that this situation adversely affected the airline's standing as a low-cost carrier. He suggested that the imposition and subsequent dispute over the PSC potentially undermined the airline's historical success in establishing Kuala Lumpur as a global hub for low-cost aviation over the past 18 years.

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What led to the court battle between MAHB and AirAsia over PSC?

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