MAHB rejects AirAsia’s overture for mediation


Malaysia Airports Holdings Bhd (MAHB) has rejected AirAsia Group Bhd’s offer of mediation in a letter sent by the airport operator’s lawyers.

In a statement, the budget airline said it had proposed mediation to MAHB in an attempt to amicably resolve the parties’ ongoing dispute over passenger service charges at KLIA2.

The Malaysian Aviation Commission (Mavcom) Act 2015 requires Air- Asia and MAHB to first seek mediation before resorting to other legal proceedings, in order to potentially save time and costs for all parties involved, inclu- ding the judicial system.

AirAsia, therefore, acted in good faith to comply with the Act and prevent further public discourse which it believed was damaging to the aviation sector.

Regardless of the outcome, the budget airline believed mediation would allow both parties to move forward in a more informed manner.

“We regret that MAHB has refused AirAsia’s olive branch to resolve outstanding issues between us through mediation, particularly in light of MAHB’s recent statement that it was ‘optimistic that these matters can and will be resolved’,” AirAsia Bhd (Air- Asia Malaysia) CEO Riad Asmat was quoted as saying in the statement.

He said AirAsia would seek guidance from Mavcom on the next steps to address this situation.

“However, we reserve our rights to take all necessary action to protect the interests of our guests and shareholders,” he added.

On Monday, AirAsia Malaysia said it is standing firm in its opinion that the decision to impose the same passenger service charge for KLIA and KLIA2 is fundamentally wrong and against the principle of non-discriminatory pricing. — Bernama