KLIA Aerotrain Contractor Fined RM9.1 Million For Delay

Kuala Lumpur International Airport’s (KLIA) operator, Malaysia Airports Holdings Bhd (MAHB), has imposed a liquidated ascertained damages (LAD) penalty of RM9.1 million on the consortium responsible for its new aerotrain project. The Ministry of Transport said the penalty was issued after the consortium, led by Alstom in a joint venture with IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd (IPJV), failed to complete the project satisfactorily. The LAD is calculated at RM100,000 per day over 91 days, covering the period from April 1 to June 30, 2025. The ministry confirmed the figure in a written reply on its website to a question from Khoo Poay Tiong (Kota Melaka) regarding penalties imposed on the contractors. MAHB previously stated that an independent rail assessor had verified that the aerotrain system is operational as designed. Early service disruptions, observed since the system commenced, were deemed typical for the initial phase of complex rail operations. The assessment concluded that these disruptions posed no safety risks, with engineering controls and continuous monitoring in place to manage any issues effectively.