AirAsia demands US$107m from Malaysia Airports

TD Guest Writer

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AirAsia is the largest carrier at KLIA2 (photo by aromaso)
AirAsia is the largest carrier at KLIA2 (photo by aromaso)

AirAsia is demanding MYR409 million (US$107m) in compensation from Malaysia Airports Holdings Bhd (MAHB) for losses and damages it has incurred by operating from Kuala Lumpur International Airport 2 (KLIA2).

Last week, the airline’s group CEO, Tony Fernandes, slammed MAHB for the condition of the new low-cost terminal, which it claims is plagued with defects, with cracks and pools of water forming on the taxiways.

“This has got to end,” Fernandes was quoted saying by Malaysia’s Bernama news agency. “We should never have moved before the ground was settled and fixed.”

The opening of MYR4 billion KLIA2 was delayed for a year, and AirAsia was initially unwilling to move its operations from the former Low-Cost Carrier Terminal (LCCT). The carrier is now demanding damages from state-run MAHB, which it claims has “failed and/or breached its contractual duties and duty-of-care” to AirAsia, which has caused the airline to “suffer losses as a result”.

AirAsia is also claiming that that MAHB’s alleged breaches have damaged its brand and reputation. AirAsia is the largest operator at KLIA2.
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