MAHB, AirAsia drop legal suits against each other

This is in effort to strengthen travel and aviation ecosystem


CAPITAL A Bhd and Malaysia Airports Holdings Bhd (MAHB) have agreed to withdraw the lawsuit filed by the two companies regarding the management of Kuala Lumpur International Airport 2 (KLIA2), in which MAHB was accused of negligence.

MAHB MD Datuk Iskandar Mizal Mahmood said that there are no longer any legal processes or significant lawsuits from MAHB against AirAsia Bhd or AirAsia X Bhd (AAX) as they pushed forward to develop a stronger platform for the aviation ecosystem. 

He cited the need for greater collaboration and synergy between the two companies as the reason for this decision.

“We believe that close collaboration with all stakeholders within the aviation ecosystem is key in propelling us towards growth for both the industry and the country. 

“We are committed to working together for the mutual benefit and success of all the aviation stakeholders, i.e., airlines, airports, passengers and the industry,” Iskandar Mizal said in a statement yesterday.

Meanwhile, Capital A CEO Tan Sri Tony Fernandes endorsed the thoughts of the former, adding that the company is thrilled to establish common ground to achieve an amicable result on the settlement of any unresolved issues with MAHB via supportive and constructive communication in the spirit of collaboration.

“As the world recovers from the pandemic and substantial losses in the aviation sector in particular, it is integral that all stakeholders work together to stimulate the air travel revival.

“As two major players driving the aviation ecosystem, it is more important than ever that MAHB and our Malaysian-based airlines, AirAsia and AAX, show solidarity in making Malaysia’s aviation industry competitive and attractive again,” said Fernandes in the same statement.

According to him, the outcome is encouraging and speaks well for supporting a quick recovery of the sector, as well as stimulating Malaysia’s tourist industry and economic development.

“We thank MAHB for their support to make air travel out of our main hub in KLIA2 not only affordable for many millions of passengers each year, but also with a mutual commitment to work with us on improved services to build a better tourism industry in Malaysia for the future, which is a win-win for us all,” he added.

In April, MAHB filed an appeal against a High Court ruling for the striking out of its suit against AirAsia and AAX with respect to the management of KLIA2.

In October 2019, Capital A subsidiaries AirAsia and AAX filed a lawsuit against Malaysia Airports (Sepang) Sdn Bhd (MASSB), alleging the sum was “loss and damage caused by negligence on the part of MASSB, its servants or agents in the management, operation, maintenance and provision of airport services and facilities at KLIA2.

The claim made by the two airlines comprises RM371 million for the loss of customers; RM99.6 million for runway closures; RM5.6 million for the consequence of failure to offer services; RM1 million for damage to aircraft and Internet outages; and RM2.5 million for operational interruptions.