AirAsia (AK, Kuala Lumpur International) and AirAsia X (D7, Kuala Lumpur International) have filed a judicial review application asking a court to issue an order compelling Malaysia Aviation Commission (MAVCOM) to adjudicate on the ongoing dispute between the two carriers and Malaysia Airports.
The two low-cost carriers argue that MAVCOM breached the law by refusing to adjudicate the dispute earlier this year.
"AirAsia and AirAsia X maintain that under the MAVCOM Act, MAVCOM has a statutory duty to commence to decide on the dispute once mediation between parties has failed, or is deemed to have failed. The refusal to decide on the disputes is therefore contrary to sections 74 to 78 of the MAVCOM Act," the airlines said in a statement asking for mandamus from the court.
Malaysia Airports, the operator of Kuala Lumpur International and most of the other airports in the country, is trying to enforce the payment of higher passenger fees at Kuala Lumpur's low-cost KLIA2 terminal, which went into effect on July 1, 2018. Prior to that date, charges at KLIA2 were lower than at the full-service KLIA1 terminal but have since been equated.
In December 2018, the state-owned airport operator 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. The two airlines challenge the order, arguing that the inferior level of service at KLIA2 does not justify the same fees as at KLIA1.
Subsequently, in February 2019, the two airlines served a notice to the airport operator covering nearly MRY480 million ringgits (USD117.2 million) in damages and compensation for losses incurred at the KLIA2 terminal.
