AirAsia (AK, Kuala Lumpur International) served a notice to Malaysia Airports (Sepang) Sdn Bhd (MASSB), a wholly owned subsidiary of Malaysia Airports Holdings Berhad (MAHB), covering nearly MRY480 million ringgits (USD117.2 million) in damages and compensation for losses incurred at the Kuala Lumpur International low-cost KLIA2 terminal.

"AirAsia listed its losses totalling MY479,781,285, the main part coming from loss of customers in the last four years, owing to disruptions and poor condition of the terminal," the LCC said.

The damages also include the airline's long-haul unit AirAsia X (D7, Kuala Lumpur International). The two AirAsia Group carriers said that MAHB provided a "poor level of service" at KLIA2, including multiple runway closures, apron defects, damage to two aircraft due to malfunctions of MASSB’s infrastructure and sensors, a fuel line rupture at KLIA2 Pier P, and internet outages.

The two airlines previously estimated their damages from the alleged wrongdoing by MAHB at around MYR400 million ringgit (USD97.6 million).

The LCCs are now seeking mediation to resolve the dispute. AirAsia Group has long been saying that MAHB violated the Malaysian Mavcom Act by filing a lawsuit in a dispute over airport fees without first exhausting the mediation procedure.

In December 2018, the state-owned airport operator, which runs 39 airports in Malaysia and Istanbul Sabiha Gökcen, sued the short-haul unit of AirAsia Group for MYR9.4 million ringgits (USD2.2 million) and the long-haul airline for MYR26.7 million ringgits (USD6.4 million) for passenger fees outstanding since July 1, 2018.

AirAsia admitted that it ceased to collect passenger fees from its customers departing on international routes from Kuala Lumpur once Malaysia Airports raised the fee at the low-cost terminal KLIA2 to MYR73 ringgits (USD17.5) for non-ASEAN routes, matching the level at the full-service KLIA1 terminal. Previously, the fee at KLIA2 was MYR50 ringgits (USD12).