After almost a decade of wrangling, Malaysia Airports Holdings Bhd (MAHB) has finally concluded its arbitration dispute with Kuala Lumpur Aviation Fuelling System Sdn Bhd (KAFS) over the reduction of the concession period at Kuala Lumpur International Airport.
The dispute, which began in 2015, involved KAFS’s claim of RM456 million after the airport’s concession period was shortened from 50 years to 25 years in 2009.
In 2018, the Arbitration Tribunal ruled that KAFS was entitled to receive damages but the amount of the damages was deferred to separate proceedings.
On Monday, MAHB announced that KAFS and its subsidiary, MA Properties, had reached a settlement agreement on the amount of the damages.
Although the settlement amount was not disclosed, MAHB assured that this agreement will not impact their earnings for the financial year ending December 31, 2024.
With this settlement, both parties can finally move forward, closing a long chapter in the history of the country's airport operations.
