MYAirline fails to nullify RM17.7m suit over overdue airport fees

MYAirline Sdn Bhd has failed to strike out a lawsuit over RM17.7 million in alleged overdue airport service charges.

The Kuala Lumpur High Court today dismissed MYAirline’s application to quash the suit by Malaysia Airports (Sepang) Sdn Bhd and Malaysia Airports Sdn Bhd.

The civil action centred on the allegation that MYAirline had failed to pay six types of service charges amounting to RM17,747,553.02 between March and August last year.

The alleged overdue charges included passenger service and passenger security charges amounting to RM10,863,478.90, landing fees of RM5,445,555.45, parking fees of RM176,017.92, aerobridge fees of RM655,760, check-in counter fees of RM267,367, and late payment charges of RM339,373.72.

In seeking to strike out the suit, MYAirline claimed that the plaintiffs should have resorted to a dispute resolution mechanism under the Malaysian Aviation Commission (Mavcom) Act 2015, instead of filing the court action.

Judge Gan Techiong, however, ruled that the dispute resolution mechanism under Sections 74 and 78 of the Act do not apply here as the provisions do not cover disputes on airport charges.

He said the dispute resolution mechanism is only for disputes over aviation services at airports.

Mavcom has no power to hear dispute

“The power to order payment (on airport charges) belong to the civil courts and a few selected tribunals like the Industrial Court and buyer tribunals conferred with power by act of Parliament to order payment from one party to another.

“The commission (Mavcom) does not have power under Section 74 and 75 to decide on contractual disputes between airline services.

“The civil courts have jurisdiction to hear the two plaintiffs’ suit against the defendant,” Gan said.

The judge said Mavcom has no power to hear the dispute as MYAirline’s aviation service licence had already been revoked last year.

“Are the plaintiffs to be left with no remedy to claim unpaid charges against a defendant who is no longer licensed to operate?

“Such construction of the law would be absurd,” he said, and ordered MYAirline to pay a total RM30,000 costs to the two plaintiffs.

Gan then proceeded to hear the plaintiffs’ application for summary judgment (verdict without full trial) against the defendant.

On Oct 18 last year, Malaysia Airports (Sepang) and Malaysia Airports, filed the suit.

The plaintiffs claimed MyAirline never disputed the content of the invoices and account statements issued to it within 30 days.

The plaintiffs seek for the defendant to pay the outstanding charges of RM17,747,553.02.

Malaysia Airports (Sepang) seeks RM9,111,402.94, while Malaysia Airports is seeking RM8,636,150.08.

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