Clarification on the Discontinuance of Legal Proceedings With Airasia Berhad and Airasia X Berhad

2022-08-15

Malaysia Airports wishes to provide some clarification on the announcement we had made on 10 August 2022 regarding the discontinuance of legal proceedings with AirAsia Berhad and AirAsia X Berhad.

It is to be noted that save for the mutual agreement to discontinue with legal proceedings, there was no other settlement agreement entered into by parties. Parties believe that being leading entities within the aviation sector, we can find amicable resolutions based on goodwill and camaraderie without having to resort to legal proceedings, which should only be invoked in extreme circumstance.

We wish to clarify that the outstanding Passenger Service Charge (PSC) due and owing from AirAsia Berhad and Air Asia X Berhad pursuant to a High Court judgment dated 18 July 2019, which was subsequently affirmed by the Court of Appeal on 3 March 2022, the full outstanding sum claimed of approximately RM41.5 million has already been paid by AirAsia Berhad and Air Asia X Berhad to Malaysia Airports. Further outstanding PSC which has accrued since, has not been waived and remains due and owing based on the principles stated by the High Court and Court of Appeal. The recent agreement with AirAsia Berhad and Air Asia X Berhad to discontinue legal proceedings was unrelated to the debt of approximately RM78 million due and owing from AirAsia X Berhad. This sum had already been compromised pursuant to a High Court order dated 16 December 2021 which approved AirAsia X Berhad’s scheme of arrangement to restructure its debt. In compliance with this High Court order, Malaysia Airports is currently in the process of recovering the outstanding debt from AirAsia X Berhad as a secured creditor in the scheme proceedings.

As previously stated, Malaysia Airports is committed towards working together for the mutual benefit and success of all the aviation stakeholders i.e. airlines, airports, passengers and the industry. We will focus on recovering and stimulating the air travel revival and propelling the growth within the aviation ecosystem for both the industry and the country.