AirAsia X is defending itself in a lawsuit brought by Malaysia Airports Holdings Berhad (MAHB), a firm that operates most of Malaysia’s airports. The lawsuit, which was filed at the end of April, alleges that AirAsia X has incurred up to RM34.88 million (USD$8.85 million) in debt with the airport system, a claim that the low-cost carrier denies.
AirAsia X maintains that it pays airport charges to MAHB in monthly installments. Benjamin Ismail, the carrier’s CEO, continued that the airline has filed various complaints with MAHB over high prices and dissatisfactory facilities.
“The company’s solicitors are of the opinion that Malaysia Airports’ claim can be legally defended, and further there are sums to be deducted and set off against charges imposed by Malaysia Airports,” AirAsia X has said in a stock market filing. “There is no material financial and operational impact on the company as expenses of this nature are in the ordinary course of business and the same have been provided for in the financial statements. There are also no foreseeable losses arising from the claim.”
MAHB, however, says that AirAsia has failed, either by neglect or downright refusal, to pay airport fees as of late. “The board of the company is of the opinion that it is necessary for Malaysia Airports to pursue the civil suit to best protect its interest,” the airports operator stated.
Among the airports that MAHB manages is Kuala Lumpur International Airport, where AirAsia X has its main base.
AirAsia X and its parent, AirAsia, are already caught up in legal proceedings with MAHB from a lawsuit filed in 2016. In that suit, AirAsia sought damages after a fuel pipe burst in the airport’s Terminal 2, which allegedly caused AirAsia substantial losses
Featured image from The Independent