In an attempt to strengthen consumer protection for air travellers, MAVCOM has proposed amendments to the Malaysian Aviation Consumer Protection Code (MACPC). One of the major proposals involves refunds which have been a key frustration point among airline passengers who have not gotten their refunds when their flights are rescheduled, cancelled or delayed.
Refund in the original mode of payment
Since the MACPC came into force in 2016, all airlines are required to refund travellers if their flights are cancelled or significantly changed. However, the method of refund is not standardised and some airlines chose to reimbursed affected passengers with credit or travel voucher as a form of refund.
Under the proposed amendment, MAVCOM aims to replace the term “reimbursement” with “refund in the original mode of payment”, unless there’s a different form of agreement between the airline and the consumer. This means if you pay your flight tickets by online banking, the airline should perform a refund directly to your online bank account instead of giving a credit note or travel voucher.
Refunds must be made for flight disruption regardless of the reason
In addition, airlines are currently not obliged to provide care, refund or rerouting options to consumers for flight delay, cancellation, route cessation and planned flight rescheduled caused by extraordinary circumstances that could not be avoided even if all reasonable measures had been taken. During the COVID-19 pandemic when air travel was mostly suspended, airlines were not obliged to refund as it was considered an extraordinary circumstances. However, several airlines have offered travellers credit or travel vouchers as a gesture of goodwill.
MAVCOM is proposing an amendment to the MACPC to include the provision for airlines to refund in the original mode of payment for flight disruption or service that’s not rendered regardless of the reason. It added that any unrefunded sum by an airline should constitute as debt recoverable in court without the need of proof.
Refunds for flight delay of at least 2 hours
Under the current code, passengers are offered free of charge care including meals, refreshments, limited telephone calls and internet if a flight is delayed for at least 2 hours. For flight delays of more than 5 hours, passengers are offered hotel accommodation if necessary and transport in between the airport and place of accommodation.
The proposed MACPC amendment aims to add a provision for airlines to offer passengers the option for a refund in the original mode of payment if a flight is delayed for 2 hours or more.
Full refunds if consumers cancels flight more than 7 days ahead of departure
It is also proposed that if a consumer voluntarily cancels a flight more than 7 days prior to the scheduled time and date of departure, the consumer will be entitled for full refund, while airlines will be allowed to impose a cancellation fee of up to 10% of the flight ticket. If the cancellation is done within the 7 days of the schedule flight, the terms and conditions of the ticket should apply. According to MAVCOM, these proposed amendments will cover all tickets including those purchased directly from airlines, travel agents, online travel agents, partners and other associated booking flights.
Protection for passengers who purchase travel passes
MAVCOM is aware that some airlines have offered travel pass scheme to travellers which offer unlimited flights within a certain region and time period. It is proposed that consumers holding unutilised travel pass or similar travel schemes be entitled for full refund before the expiry date if the pass is not utilised. If the unlimited pass has been used at least once, the terms and conditions of the travel pass will apply.
The proposed amendments are a positive step towards better consumer protection however the biggest question is always on the effective enforcement of the consumer code. Airlines especially low cost carriers may impose its own restrictive terms and conditions which all customers have to accept during booking. In most airline ticket sales and promos, the flight tickets are often marked as non-refundable.
Similar to telco contracts and penalties, the MCMC said customers are responsible for accepting the terms and conditions. However, it is a breach of the General Consumer Code if the service provider fails to provide the crucial information during sign up.
MAVCOM aims to implement the enhanced MACPC in the first quarter of 2023. The public and interested parties can view the consultation paper here and submit their feedback by 5.00pm on 7th November 2022.
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