Court slaps MYAirline with RM17.7m payment order for unpaid service charges to Malaysia Airports

KUALA LUMPUR — The High Court here today ordered MYAirline Sdn Bhd to pay outstanding airport service charges totalling RM17.7 million to Malaysia Airports (Sepang) Sdn Bhd and Malaysia Airports Sdn Bhd.

Judicial Commissioner Gan Techiong made the ruling after granting the plaintiffs’ (both companies) application for a summary judgment against MYAirline (the defendant), according to a report published in Malay news portal KOSMO! today.

In delivering the summary judgment, Techiong directed the defendant to pay RM9.1 million to Malaysia Airports (Sepang) as the first plaintiff and RM8.6 million to Malaysia Airports as the second plaintiff.

The court also allowed the defendant to pay RM10,000 in costs to each plaintiff.

On November 9, 2023, both plaintiffs filed for a summary judgment on the grounds that the money claimed from the defendant was still accruing and unpaid, and the defendant had no defence against the suit.

Earlier, Techiong also dismissed MYAirline’s application, with RM30,000 in costs, to strike out the suit filed by both plaintiffs and proceeded with the summary judgment (without a trial).

MYAirline had filed the application on November 24, 2023, to dismiss the suit on the grounds that the plaintiffs should have used a dispute resolution mechanism as outlined in Sections 74 to 78 of the Malaysian Aviation Commission Act 2015 before filing the suit.

The defendant argued that the plaintiffs’ action was invalid or premature as they had not complied with nor used the dispute resolution mechanism.

On October 18, 2023, the plaintiffs sued MYAirline for failing to pay six types of service charges totalling RM17,747,553.02 between March and August 2023.

The outstanding charges include RM10,863,478.90 in passenger service and security charges, 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.

In the proceedings, lawyers Shannon Rajan, Eric Gomez, and Katelyn Yeoh represented Malaysia Airports (Sepang) Sdn. Bhd. and Malaysia Airports Sdn Bhd., while Nesema Jalaludheen represented MYAirline.