Malaysia Airports Holdings Bhd (MAHB) is to submit AirAsia Bhd's operation status at Kota Kinabalu International Airport (KKIA) to the government in an effort to move the operations of the low-cost airline back to Terminal 1 of KKIA.

MAHB Managing Director Datuk Mohd Badlisham Ghazali said the decision to do so was made following AirAsia's refusal to relocate to Terminal 1 from Terminal 2 at KKIA, as directed by the government.

"We are only the host. We cannot force any company using our facilities and services to move out and therefore we are asking the government and the Department of Civil Aviation (DCA) to intervene," he told Bernama at a Hari Raya Open House here on Saturday.

Mohd Badlisham said on Monday, Transport Minister Datuk Seri Liow Tiong Lai Liow was expected to announce whether Terminal 2 would be closed or continue operating as normal.

He said he could not understand why AirAsia was adamant in not moving back to Terminal 1 given the fact that facilities there were far better than at Terminal 2.

"We have received complaints from passengers on the unpleasant odour at Terminal 2. The people of Sabah are embarrassed to have a terminal like that," he said.

On July 1, Liow told the Dewan Negara that AirAsia was to return to Terminal 1 beginning August 1 when the RM1.4 billon renovation work at the terminal was completed and that Terminal 2 was only temporary.

Meanwhile, on the letter of demand amounting to RM409 million served by AirAsia to MAHB, Mohd Badlisham was surprised that the low-cost airline was making such claims now.

"AirAsia has been operating at the Low Cost Carrier Terminal (LCCT) since 2001. Why bring up the issue only now?," he said.