AirAsia Bhd and AirAsia X Bhd have filed a judicial review against the Malaysian Aviation Commission (Mavcom) over its refusal to decide on a dispute between Malaysia Airport (Sepang) Sdn Bhd (MASSB) and the airlines.
The dispute revolves around uncollected passenger service charges (PSC) and alleged low level of service at klia2.
According to a report by The Edge, the low-cost airlines held that Mavcom had a statutory duty to adjudicate on the dispute once mediation between parties failed, or is deemed to have failed, based on the Mavcom Act.
“The refusal to decide on the dispute is therefore contrary to Sections 74 to 78 of the Mavcom Act,” said the report, quoting court documents.
The airlines are seeking an order of mandamus to compel Mavcom to adjudicate on the dispute between AirAsia and AirAsia X and MASSB in line with its statutory duty.
MASSB is a wholly-owned subsidiary of Malaysia Airports Holdings Bhd.
AirAsia said MASSB had filed several court actions, including defamation suits, against the group’s top executives, seeking that the airlines pay the uncollected amounts of passenger service charges to MASSB.
However, AirAsia and AirAsia X have refused to collect the increased PSC as they maintained that it was unjustified in view of the poor service level at klia2.
Both airlines had applied to strike out MASSB’s actions and filed a counter claim of RM480 million against MASSB for damages incurred as a result of poor service at klia2.