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MYAirline Ordered To Pay RM17.7mil To Airport Operators For Unpaid Service Charges

One of the charges includes passenger service and security fees, amounting to RM10,863,478.90.
MYAirline Sdn Bhd has been ordered by the High Court to pay RM17.7 million in overdue airport service charges to Malaysia Airports (Sepang) Sdn Bhd and Malaysia Airports Sdn Bhd.

The decision, which follows a legal dispute over unpaid fees for various airport services, highlights the financial pressures and legal obligations facing airlines in the industry, reported NST.

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Below is a detailed chronology of the events leading to this significant court ruling.

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Chronology of events

Myairline service counter
For illustration purposes only. Photo via WeirdKaya

October 18, 2023:
Malaysia Airports (Sepang) Sdn Bhd and Malaysia Airports Sdn Bhd initiate a lawsuit against MYAirline Sdn Bhd, accusing the airline of failing to pay six types of airport service charges totaling RM17,747,553.02. These charges include:

  • Passenger service and passenger security charges: RM10,863,478.90
  • Landing fees: RM5,455,555.45
  • Parking fees: RM176,017.92
  • Aerobridge fees: RM655,760
  • Check-in counter fees: RM276,376
  • Late payment charges: RM339,373.72

The airport operators claim that MYAirline has consistently neglected to pay these charges and has not disputed the invoices and account statements within the required 30-day period.

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November 9, 2023:
The plaintiffs seek a summary judgment, arguing that MYAirline has accrued these unpaid charges without providing a defense against the lawsuit.

Malaysia Airports (Sepang) Sdn Bhd and Malaysia Airports Sdn Bhd argue that the airline’s continued failure to settle the charges clearly establishes its liability.

August 16, 2024:
Judicial Commissioner Gan Techiong delivers his judgment in favour of the plaintiffs. He concludes that MYAirline had indeed utilised the services provided by the airport operators, making their liability clear.

The court orders MYAirline to pay RM9,111,402.94 to Malaysia Airports (Sepang) Sdn Bhd and RM8,636,150.08 to Malaysia Airports Sdn Bhd, amounting to RM17.7 million in total.

Representation in court:
The plaintiffs, Malaysia Airports (Sepang) Sdn Bhd and Malaysia Airports Sdn Bhd, are represented by lawyers Shannon Rajan, Eric Gomez, and Katelyn Yeoh. MYAirline’s defense is led by lawyer Nesema Jalaludheen.

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