Malaysia Airports Holdings Bhd (MAHB) has rejected AirAsia’s offer of mediation in a letter sent by the airport operator’s lawyers.

In a statement, the budget airline said it had proposed mediation to MAHB in an attempt to amicably resolve the parties’ ongoing dispute over passenger service charges at KLIA2.

The Mavcom Act requires AirAsia and MAHB to first seek mediation before resorting to other legal proceedings, in order to potentially save time and costs for all parties involved, including the judicial system.

AirAsia, therefore, acted in good faith to comply with the Act and prevent further public discourse which it believed was damaging to the aviation sector.

Regardless of the outcome, the airline believed mediation would allow both parties to move forward in a more informed manner.

“We regret that MAHB has refused AirAsia’s olive branch to resolve outstanding issues between us through mediation, particularly in light of MAHB’s recent statement that it was ‘optimistic that these matters can and will be resolved’," AirAsia Malaysia chief executive officer Riad Asmat was quoted as saying in the statement.

He said AirAsia would seek guidance from Mavcom on the next steps to address this situation.

"However, we reserve our rights to take all necessary action to protect the interests of our guests and shareholders,” Riad added.

- Bernama