AirAsia and its longhaul sister carrier AirAsia X on May 14 filed a judicial review application challenging the Malaysian Aviation Commission (Mavcom) for declining to decide on its disputes with Malaysia Airports.
AirAsia’s long-running disputes with Malaysia Airports are over the passenger service charge (PSC), which comes under the purview of Mavcom, and the level of service at klia2.
In the past, the airport operator had filed several court actions, including defamation against AirAsia group’s top executives. It has also demanded that the airlines, which have refused to collect the increased passenger service charges from passengers, paid the uncollected amounts.
AirAsia and AirAsia X both dispute Malaysia Airports’ claims and have applied to strike out the actions. Both airlines have also made a claim of RM480 million (US$115 million) against Malaysia Airports for damages incurred as a result of the service at klia2.
The airlines maintain that the increased PSC is arbitrary, burdens the travelling public and is unjustified as the levels of service at klia2 are inferior to that of KLIA where passengers pay the same charges (RM73 per passenger).
The LCCs have tried to engage both Malaysia Airports and Mavcom to resolve the issues through the statutory dispute structure provided by the Mavcom Act.
However, Mavcom has through two letters dated February 28 and March 18, 2019 refused to decide on the disputes on the basis that “the interpretation and applicability of sections 74 and 75 of the Malaysian Aviation Commission Act 2015 [Act 711] are currently pending disposal by the Court”.
AirAsia argued in its statement that under the Mavcom Act, “Mavcom has a statutory duty to commence to decide on the dispute once mediation between parties has failed, or is deemed to have failed. The refusal to decide on the disputes is therefore contrary to sections 74 to 78 of the Mavcom Act.”
In this regard, AirAsia and AirAsia X are also asking for a mandamus to compel Mavcom to adjudicate on the disputes between both airlines and Malaysia Airports (Sepang) in accordance with its statutory duty under the Mavcom Act.
Thailand’s Centara Hotels & Resorts and KMA Hotels Group have signed an MoU to begin the development and renovation of six hotels in Myanmar, all to be managed under Centara brands.
This will see three of KMA Hotels Group’s existing properties located in Inle, Naypyitaw and Taungoo undergo refurbishment prior to reopening, and the development of three new hotels in Bagan and Than Daung, namely Centara Bagan River View Resort & Spa Kaytumadi Dynasty Bagan Resort, Centara Boutique Collection and Shwe Than Daung Resort, and Centara Boutique Collection.
All six hotels will operate under the upscale and upper upscale Centara and Centara Boutique Collection brands. The Centara Paradise Inle Lake Resort & Spa is scheduled open its doors in 4Q this year.
The deal marks Centara’s entry into one of the world’s fastest-growing tourism markets and enables the company to secure a significant Myanmar foothold.
“Our partnership with KMA Hotels represents a significant milestone for Centara,” said Thirayuth Chirathivat, Centara’s CEO. “It gives us the opportunity to establish a significant presence for Centara in a country with huge potential for tourism development.”
KMA Group of Companies is a privately held company founded and led by Khin Maung Aye, chairman of CB Bank. The group comprises 15 corporate entities operating across a range of industries.