We wish to announce that our Company together with our affiliate, AirAsia Berhad (“AAB”) have on 14 May 2019, filed a Judicial Review application where the Malaysian Aviation Commission (“MAVCOM”) and Malaysia Airports (Sepang) Sdn Bhd (“MASSB”) are named as respondents (“JR Application”). The JR Application was filed to essentially challenge the decision of MAVCOM in declining to decide on the disputes between MASSB, AAB and our Company with regard to Passenger Service Charges ("PSC") and the poor level of service at klia2.
By way of background, there are several court actions that have been filed by MASSB against AAB and our Company for payment of outstanding PSC. AAB and our Company have disputed MASSB’s claims and have applied to strike out the actions as they are filed in breach of Sections 74 to 78 of the Malaysian Aviation Commission Act 2015 (“MAVCOM Act”). Further, AAB and our Company have a claim against MASSB for damages incurred as a result of the poor level of service at klia2 amounting to RM479,781,285.00.
AAB and our Company have taken the position that under the MAVCOM Act, MAVCOM has a statutory duty to commence to decide on the said disputes once mediation between the parties have failed, or is deemed to have failed. The refusal on MAVCOM’s part to decide on the said disputes is therefore contrary to Sections 74 to 78 of the MAVCOM Act.
In this respect, AAB and our Company are also asking, as part of the JR Application, for a mandamus to compel MAVCOM to adjudicate the disputes between AAB, our Company and MASSB in accordance with its statutory duty under the MAVCOM Act.
Further updates in respect of any material development on the matter will be made from time to time in compliance with the requirements of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.