AirAsia Berhad (5099:KL) to pay at least RM40.6m in uncollected PSC to MAHB unit
AirAsia will have to pay at least RM40.6 million to Malaysia Airports (Sepang) Sdn Bhd, a subsidiary of Malaysia Airports Holdings Bhd (MAHB), over unpaid passenger service charges (PSC) from July to December last year.
This follows the High Court here dismissing the carrier’s strike out application and allowing summary judgments by MAHB be entered on AirAsia in the three suits against the company.
“I allow order in terms with regard to Order 14 (Rules of High Court).
“The court rules that under Section 46 of the Malaysian Aviation Commission Act 2015 that the power to set charges lies with the Malaysian Aviation Commission (Mavcom) while Malaysia Airports (MAHB) is the body issued the licence to operate the airport. I am allowing Order 14 on all three cases,” Justice Azimah Omar said in her oral judgment.
AirAsia counsel Lim Tuck Sun told the court that he has instructions to appeal the decision.
Justice Azimah also ordered AirAsia to pay RM8,000 for each suit. This means the airline will have to fork out RM24,000 for the three suits.
A summary judgment under Order 14 is a court procedure used when the defendant does not have any defence to the claim.
MAHB is represented by Shannon Rajan and Eric Gabriel Gomez. MAHB acting general manager (legal division) Nor Aida Othman was also present in court.
The outstanding PSC collection is due to AirAsia’s refusal to collect the full PSC of RM73 imposed by MAHB on international departures from klia2.
Instead, AirAsia has only been charging RM50 per passenger on its flights as it feels klia2 passengers should not be paying the same PSC as those departing from Kuala Lumpur International Airport, which AirAsia deems is more superior in terms of facilities and service quality.
In its defence, AirAsia applied for MAHB’s lawsuit to be struck out, arguing that it is frivolous and an abuse of process, given that the airport operator could have followed proper dispute resolution avenues via the Malaysian Aviation Commission (Mavcom) Act 2015.
The gazetted rate of RM73, which was stipulated by Mavcom, is an increase from the RM50 charged previously. Mavcom said in a statement dated Nov 30, 2017 that effective Jan 1, 2018, the PSC for international destinations beyond Asean at klia2 will be RM73, being the same rate as those at other airports in Malaysia.
MAHB, however, deferred the implementation of the new rate from January to June 2018, and only started implementing it from July 2018.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 2.82.
The projected upper bound is: 3.02.
The projected lower bound is: 2.71.
The projected closing price is: 2.86.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 1 white candles and 8 black candles for a net of 7 black candles. During the past 50 bars, there have been 16 white candles and 31 black candles for a net of 15 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 18.5185. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 7 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.95. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 9 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -71. This is not a topping or bottoming area. The last signal was a sell 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.
Rex Takasugi – TD Profile
AIRASIA GROUP closed down -0.040 at 2.860. Volume was 23% above average (neutral) and Bollinger Bands were 11% narrower than normal.
Open High Low Close Volume___
2.910 2.920 2.860 2.860 10,784,400
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2.92 2.76 2.72
Volatility: 19 36 44
Volume: 8,164,199 10,207,814 9,394,494
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
AIRASIA GROUP is currently 5.3% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AIRA.KL at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AIRA.KL and have had this outlook for the last 0 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
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