MYAirline Sdn Bhd’s attempt to dismiss a lawsuit seeking RM17.7 mil in alleged overdue airport service charges has been rejected by the Kuala Lumpur High Court. The court dismissed the airline’s application to strike out the suit filed by Malaysia Airports (Sepang) Sdn Bhd and Malaysia Airports Sdn Bhd.
The lawsuit revolves around accusations that MYAirline failed to pay six types of service charges totalling RM17,747,553.02 between March and August of the previous year. These charges include RM10,863,478.90 for passenger service and passenger security, RM5,445,555.45 in landing fees, RM176,017.92 in parking fees, RM655,760 in aerobridge fees, RM267,367 in check-in counter fees, and RM339,373.72 in late payment charges.
MYAirline sought to have the lawsuit struck out on the grounds that the plaintiffs should have used the dispute resolution mechanism under the Malaysian Aviation Commission (Mavcom) Act 2015, rather than pursuing legal action in court.
However, Judge Gan Techiong ruled that the dispute resolution provisions under Sections 74 and 78 of the Mavcom Act do not apply to disputes over airport charges. He clarified that these provisions are limited to disputes involving aviation services at airports.
“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.
Judge Gan noted that MYAirline’s aviation service license had already been revoked last year, rendering Mavcom powerless to resolve the dispute. He questioned whether the plaintiffs should be left without a remedy to claim unpaid charges from a defendant no longer licensed to operate, calling such a legal interpretation “absurd”.
“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.”
The court subsequently ordered MYAirline to pay RM30,000 in legal costs to the plaintiffs and proceeded to hear the plaintiffs’ application for summary judgment—a request for a verdict without a full trial.
The lawsuit was initially filed on Oct 18 of last year by Malaysia Airports (Sepang) and Malaysia Airports, who claim that MYAirline did not dispute the content of the invoices and account statements issued within the required 30-day period.
The plaintiffs are seeking payment of the outstanding charges, with Malaysia Airports (Sepang) claiming RM9,111,402.94 and Malaysia Airports seeking RM8,636,150.08. – Aug 16, 2024
Main photo credit: The Star
