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Industry / Dispute Resolution

Dispute Resolution

As an alternative to existing available dispute resolution methods, the Act provides if there is any dispute between one or more aviation service providers, they may opt to refer the matter to MAVCOM for MAVCOM to adjudicate. The subject matter in dispute must be on any matter that is under the Act. If the matter is already in the midst of arbitration or litigation in any courts of law, parties must choose which method to use and not both.

The prerequisite that has been stipulated in section 74 of the Act is that any party who intends to refer any dispute to MAVCOM must first attempt to resolve the dispute through mediation. With that, the aviation service provider is to notify MAVCOM the commencement date of mediation which MAVCOM will then decide that parties to the dispute must resolve their disputes within 30 days or such longer period as MAVCOM may approve, but it shall not be more than 60 days.

In the event they fail to resolve the matter in dispute through mediation within the period as mentioned above, MAVCOM will commence to decide on the matter. MAVCOM will publish regulations which will contain the mechanism for the resolution of disputes.

MAVCOM’s decisions on disputes referred to it by aviation service providers under Part XI of the Act will be published and a copy of the said decision will be provided to the parties to the dispute. MAVCOM’s decisions are final and will be registered as judgment of the High Court. If any person referred to in the decision fails to comply with MAVCOM’s decision, the High Court shall make an order requiring such person to comply with the decision.

Part XI of the Malaysian Aviation Commission Act 2015