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August 11, 2022

Malaysia Airports and Capital A end legal dispute

AirAsia filed a case against MAHB for losses and damages worth $107m over negligence in the management of KLIA.

Malaysia Airports Holdings Berhad (MAHB), its unit Malaysia Airports (Sepang) Sdn Bhd (MASSB) and Capital A Berhad have decided to cease all legal proceedings between them to create a more robust platform for the local travel sector.

Previously called AirAsia Group Berhad, Capital A Berhad is the holding firm of AirAsia Aviation Group Limited.

Since 2018, the companies have been involved in a legal battle after AirAsia Group’s Malaysian operations did not agree to collect higher tariffs from passengers that MAHB and MASSB asked for.

MAHB filed three civil suits against AirAsia Group’s units, namely AirAsia and AirAsia X, for the late payment charges related to them.

AirAsia also filed a case against MAHB for losses and damages worth RM480m ($107m) over negligence in the management of Kuala Lumpur International Airport (KLIA).

MAHB managing director Iskandar Mizal Mahmood said: “We are pleased to confirm that all parties are dropping proceedings. There are no longer any legal proceedings or material litigation from MAHB against AirAsia Berhad/AirAsia X Berhad.

“We believe that close collaboration with all stakeholders within the aviation ecosystem is key in propelling us towards growth for both the industry and the country.

“We are committed to working together for the mutual benefit and success of all the aviation stakeholders, i.e. airlines, airports, passengers and the industry.”

Capital A CEO Tony Fernandes said: “AirAsia Berhad and AirAsia X have also withdrawn all legal proceedings as we look forward to working together for a better future.

“As the world recovers from the pandemic, and substantial losses in the aviation sector, in particular, it is integral that all stakeholders work together to stimulate the air travel revival.

“As two major players driving the aviation ecosystem, it is more important than ever that MAHB and our Malaysian-based airlines AirAsia Berhad and AirAsia X Berhad show solidarity in making Malaysia’s aviation industry competitive and attractive again.”

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