Why is AirAsia suing Malaysia Airports for RM479.78 million?

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AirAsia is suing Malaysia Airports for RM479.78 million due to alleged negligence in the management and operation of KLIA2 and the refusal of mediation.

AirAsia Bhd has filed a lawsuit seeking RM479.78 million from Malaysia Airports (Sepang) Sdn Bhd (MASSB), a subsidiary of Malaysia Airports Holdings Bhd (MAHB). This legal action stems from alleged losses and damages incurred by AirAsia due to MASSB's purported negligence in managing, operating, and maintaining airport services and facilities at KLIA2. The decision to proceed with the lawsuit was reportedly made after the Malaysian Aviation Commission (Mavcom) declined to mediate the dispute.
Allegations of Negligence at KLIA2

The claim lodged with the Kuala Lumpur High Court asserts that MASSB's alleged negligence in the management, operation, maintenance, and provision of airport services and facilities at KLIA2 directly caused losses and damages to both AirAsia Bhd and its long-haul affiliate, AirAsia X Bhd. These issues are understood to be related to the operational conditions and services provided at the KLIA2 terminal.
Refusal of Mediation by Mavcom

AirAsia stated that both it and AirAsia X had previously sought mediation by Mavcom concerning the dispute with MASSB, as provided for under Sections 74 to 78 of the Mavcom Act 2015. However, the regulator refused to facilitate this mediation process. This refusal, coupled with MAHB's initiation of a civil suit over Passenger Service Charges (PSC), left AirAsia feeling compelled to take legal action to protect its interests.
Dispute Over Passenger Service Charges

The underlying conflict appears to be exacerbated by a dispute over Passenger Service Charges (PSC). In February, it was disclosed that AirAsia and AirAsia X were the only airlines refusing to collect the full RM73 PSC mandated by Mavcom for non-Asean flights at KLIA2, opting instead to charge the previous rate of RM50. MAHB had previously issued letters of demand to AirAsia and AirAsia X for outstanding PSC amounts, amounting to RM9.4 million and RM26.72 million respectively. AirAsia had responded earlier in the year with a countersuit demanding RM400 million from MAHB, citing losses attributed to conditions at KLIA2.

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Why is AirAsia suing Malaysia Airports for RM479.78 million?

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