AirAsia demands RM409 mil damages from MAHB

By Khairul Khalid

KLIA2 generic 111214 06Budget airline AirAsia Bhd is demanding RM409 million from Malaysia Airports Holdings Bhd and Malaysia Airports (Sepang) Sdn Bhd (MAHB) for loss and damages incurred operating from klia2 as well as from the Low-Cost Carrier Terminal (LCCT).

“AirAsia in its demand has stated that MAHB has failed and/or breached its contractual duties and duty of care, which has caused AirAsia to suffer and continue to suffer losses as a result of MAHB’s breach,” said AirAsia in a statement.

AirAsia moved its operations from LCCT to klia2 in May 2014.

AirAsia is also claiming that the MAHB’s breaches have damaged AirAsia’s brand and reputation as the public perception is that the failings of the facilities are within the control of AirAsia being the single largest operator of klia2.

Earlier this week, AirAsia group chief executive officer (CEO) Tony Fernandes had spoken out angrily about the unsolved structural defects at the RM4 billion klia2 airport.

Both Fernandes and AirAsia CEO Aireen Omar complained that the klia2 terminal was sinking, with cracks appearing at the taxiways and pools of water forming that planes had to drive through.

Tony Fernandes

Tony Fernandes

Fernandes also suggested that AirAsia could consider moving back to the old LCCT where they had previously operated, at least temporarily until MAHB sorts out the problems at klia2.

“This has got to end and the board has to take responsibility. I had been very public about it (the construction defects) for a long time and most did not support me… Now look at the situation.

“Look at the pictures that Aireen has… I am very frustrated when I walk into the airport because there is still so much work being done. I tweeted a picture just now of our aircraft and our wheel was bent because it went over the chock, because the ground is sinking and moving,” said Fernandes.

MAHB immediately issued a statement assuring that klia2 meets all safety and regulatory requirements and is diligently monitoring the situation. It dismissed AirAsia’s calls to return to LCCT temporarily while klia2’s problems are sorted out. and downplayed the structural issues highlighted by Fernandes.

MAHB said that of the total 1.48 million square metre total klia2 airport area, only 2.3% is affected by this differential settlement that causes the ponding and depression issues, and it is targeting to reduce the areas on a monthly bass.

MAHB has spent about RM14 million on repair works at the apron – the area where airplanes are parked –  in this past year.

When contacted by KINIBIZ today about AirAsia’s RM409 million demand, MAHB said that it is in the process of examining the letter before issuing any statement.