Airasia Battles Against Malaysia Airports

AIRASIA BATTLES AGAINST MALAYSIA AIRPORTS

Low cost carrier AirAsia sent a letter to Malaysian airports authority MAHB -which runs all airports in Malaysia but Johor Bahru Senai- asking to be compensated up to US$106 million (RM409 million) for loss and damages incurred from operating out of the new KLIA2 airport as well as out of the formerly LCC Terminal (LCCT).

Unstable soils around the new KLIA2 is destabilizing the carrier’s operations with flights being delayed up to a couple of hours.

Bloomberg quoted a few days ago AirAsia Bhd CEO Aireen Omar as saying the KLIA2 is sinking, with cracks appearing in the taxiway and water forming pools that planes must drive through.

In a filing to Kuala Lumpur Stock Exchange, Bursa Malaysia, AirAsia said in its demand, it had stated that MAHB had failed and/or breached its contractual duties and duty of care, causing the airline to suffer and continue to suffer losses as a result of MAHB’s breach.

AirAsia also claims that the MAHB’s breaches had damaged AirAsia’s brand and reputation as the public perception was that the failings of the facilities were within the control of AirAsia, being the single largest operator of klia2.

MAHB is now talking to lawyers to see what could be its next action to reply to AirAsia complaints.