AirAsia ordered to pay at least $9.9 million to Malaysia Airports

The Malaysian High Court in Kuala Lumpur has ordered AirAsia and AirAsia X to pay operator Malaysian Airport Sepang (MA Sepang) MYR40.73 million ($9.9 million) in unpaid passenger service charges after ruling in favor of the national airport operator. 

The LCC was also ordered to pay MYR972,381 and MYR24,000 for late payment and lawsuit fees, respectively.

In retaliation, AirAsia Group CEO Tony Fernandes took to Twitter and posted photos of beehives at the airport, as well as uneven parking aprons at Kuala Lumpur International Airport (KLIA) Terminal 2, known as KLIA2. Since moving to KLIA2 in 2014, AirAsia has been very unsatisfied with terminal design and facilities. 

MA Sepang, a subsidiary of Malaysia Airports Holdings Bhd (MAHB) first sued AirAsia and AirAsia X in December 2018 for unpaid passenger service charges after the former raised the charges from MYR50 to MYR73. AirAsia refused to charge its passengers the increased rate as it said the facilities at KLIA2 were sub-standard. The LCC later countersued MAHB in January 2019 for losses and damages incurred by both airlines because of operational disruptions at KLIA2. 

The High Court also dismissed AirAsia’s appeal against the Malaysian Aviation Commission for failing to mediate the issue between the two parties, as regulations stipulate. 

“We will continue to fight the battle on behalf of all Malaysians and travelers to Malaysia,” Fernandes said in his posts, adding he hopes MAHB will act like a partner.