KUALA LUMPUR (June 25): The High Court has today dismissed an application for leave for a judicial review by AirAsia Group Bhd challenging the Malaysian Aviation Commission’s (Mavcom) refusal to mediate an ongoing dispute between the budget airline and Malaysia Airports Holdings Bhd (MAHB).

AirAsia filed the application on May 14 against Mavcom and Malaysia Airports (Sepang) Sdn Bhd (MASSB), a unit of MAHB.

AirAsia had sought a certiorari order to quash Mavcom’s decision not to rule on the budget airline’s dispute with MAHB, and a mandamus order to compel Mavcom to decide on the dispute.

AirAsia maintained that Mavcom has a statutory duty to mediate the dispute and has erred in law by its refusal to do so. Under sections 74 and 75 of Mavcom Act 2015, Mavcom will have to decide on a dispute between aviation service providers if mediation fails after a specified time frame.

The suit arose last December after MAHB claimed uncollected airport taxes from AirAsia and AirAsia X Bhd amounting to RM36.12 million. The next hearing is scheduled for July 4.

MASSB was initially not a party in the hearing of the ex parte leave application by AirAsia.

https://www.theedgemarkets.com/article/airasias-bid-judicial-review-against-mavcom-dismissed