Malaysian Aviation Commission fines Malaysia Airports and AirAsia

posted on 22nd January 2020 by William Hayes
Malaysian Aviation Commission fines Malaysia Airports and AirAsia

A Malaysia Airports (MAHB) subsidiary and local AirAsia carriers have received fines from the Malaysian Aviation Commission (MAVCOM) for multiple infractions.

MAVCOM charged AirAsia and AirAsia X MYR2 million ($491,000) each for violating consumer protection laws by including processing fees separately to their base fares, making it their second violation – a tenfold increase on the MYR200,000 they were each fined in September 2019.

Separately, MAHB’s subsidiary MA Sepang was fined MYR856,900 for failing to meet service standards at Kuala Lumpur International airport between April and June 2019.

MAVCOM did not specify whether this was for the main KLIA terminal or the KLIA2 terminal that primarily services low-cost carriers.

Since the start of 2018, the AirAsia carriers have been involved in a dispute with MAHB over equalising passenger charges for southeast Asian passengers departing from the main and KLIA2 terminals.

AirAsia Group’s chief executive Tony Fernandes has argued that KLIA2 is a low-cost facility and should have lower passenger charges than the main KLIA terminal. This was repeatedly rejected by MAVCOM.

In December 2018, MAHB filed a lawsuit against the two airlines after they failed to remit the higher charges owed to the airport operator.

This was followed by a MYR480 million counterclaim by AirAsia and AirAsiaX against MA Sepang in January 2019, relating to losses and damages. This, they said, were caused by MA Sepang’s “negligence in the management, operation, maintenance, and provision of airport services and facilities at KLIA2” terminal building.