High Court bins AirAsia challenge against Mavcom over airport dispute

The dispute was triggered after MAHB claimed uncollected airport taxes from AirAsia Group and AirAsia X amounting to RM36.12 million in December last year. — Picture by Ahmad Zamzahuri
The dispute was triggered after MAHB claimed uncollected airport taxes from AirAsia Group and AirAsia X amounting to RM36.12 million in December last year. — Picture by Ahmad Zamzahuri

KUALA LUMPUR, June 25 — AirAsia Group Berhad failed to get the High Court’s permission to challenge the Malaysian Aviation Commission (Mavcom) for refusing to mediate its dispute with Malaysia Airports Holdings Bhd (MAHB), The Edge reported today.

The financial daily reported that the budget airline giant’s judicial review application was dismissed by Justice Datuk Nordin Hassan earlier today in a closed court, after hearing the Attorney General’s Chambers submission, which argued that Mavcom had not decided on the case, but only deferred it.

Mazlifah Ayob, representing the AGC, explained that the judge agreed with their submission that AirAsia was not adversely affected at this point in time.

The senior federal counsel was also reported saying the judge also agreed with them that there were multiple suits between AirAsia and MAHB taking place in the civil courts, and that there would be a decision in at least one of the cases soon.

The airlines, comprising AirAsia Bhd and its long-distance sister company AirAsia X Bhd, had filed the judicial review application against Mavcom and MAHB subsidiary, Malaysia Airports Sepang Sdn Bhd, in May.

AirAsia Group wants the court to order Mavcom to mediate in its dispute with MAHB, arguing that Section 74 and 75 of Mavcom Act 2015 states that Mavcom must decide on disputes between aviation service providers if there is no resolution after a certain period of time.

The dispute was triggered after MAHB claimed uncollected airport taxes from AirAsia Group and AirAsia X amounting to RM36.12 million in December last year.

The next hearing is set on July 4 at the High Court.

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