Debt remains despite deal to stop court action

Debt remains despite deal to stop court action

AirAsia X still owes the sum in passenger service charge in accordance with a court decision, says Malaysia Airports.

The deal to stop legal proceedings with AirAsia X does not cover an outstanding bill of RM78 million, says Malaysia Airports.
PETALING JAYA:
While AirAsia Bhd and AirAsia X Bhd may have agreed with Malaysia Airports Holdings Bhd to end their legal battle over unpaid debt, the airport operator made it clear today that there still is some money left to be paid.

For a start, the airport operator said, the deal with the two airlines did not include a RM78 million debt owed by AirAsia X.

The sum was related to a Dec 16, 2021 High Court order approving AirAsia X’s debt restructuring exercise.

“In compliance with this High Court order, Malaysia Airports is currently in the process of recovering the outstanding debt from AirAsia X as a secured creditor in the scheme proceedings,” it said in a press statement issued today.

Last Wednesday, the airlines and Malaysia Airports announced that they had agreed to discontinue legal proceedings.

However, Malaysia Airports pointed out, there was no other settlement agreement between the two sides.

“We wish to clarify that the outstanding passenger service charge (PSC) due from AirAsia and AirAsia X pursuant to a High Court judgement of July 18, 2019 and subsequently affirmed by the Court of Appeal on March 3, 2022, amounting to RM41.5 million had been fully paid,” the statement said.

However, it said, further outstanding PSC that had been accrued had not been waived and therefore remained outstanding. The outstanding amount was not disclosed.

Malaysia Airports stressed that apart from the mutual agreement to stop legal proceedings there were no other settlement agreements between the two parties.

“We are committed towards working together for the mutual benefit and success of all the aviation stakeholders — airlines, airports, passengers and the industry. We will focus on recovering and stimulating the air travel revival and propelling growth within the aviation ecosystem for both the industry and the country,” it added.

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