AirAsia fails in legal challenge against aviation commission
AirAsia has failed in a legal bid to force the Malaysian Aviation Commission (Mavcom) to rule on a long running dispute the airline group has with Malaysia Airports Holdings.
AirAsia and AirAsia X have been in dispute with the airport operator over their refusal to collect passenger service charges, claiming the airport’s facilities do not justify the rates.
The airlines filed for a judicial review in May, claiming Mavcom had failed to rule on the dispute.
The High Court agreed Mavcom had not made a decision on the AirAsia-MAHB dispute but had not simply refused to do so, but only deferred a decision for now.
"This does not amount to a decision that renders AirAsia adversely affected or aggrieved and therefore entitled the budget airline to make the (judicial review) application," said senior federal counsel Shamsul Bolhassan.
AirAsia maintained Mavcom had a legal duty to rule on the dispute once mediation between the parties had failed under the Mavcom Act.
However Mavcom declined to do so as it said two sections of the act are ‘currently pending disposal by the Court.’
That could still take some time which may spur the airline and MAHB to resume talks to finally resolve the spat.
It began when the airport operator increased PSC costs at the Klia2 low cost airport in line with charges at the main KL airport.
AirAsia said this was unfair as the two airports are miles apart in terms of facilities they offer.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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