Errant airlines to pay heavy price

KUALA LUMPUR: By this year, clearly-defined penalties will be introduced by the Malaysian Aviation Commission (Mavcom) against airlines that breach passenger rights.

The maximum penalty imposed on an airline is a RM200,000 fine if they do not comply with certain provisions in the Malaysian Aviation Consumer Protection Code 2016 (MACPC), said Mavcom consumer affairs director Pushpalatha Subramaniam.

In the case of a subsequent non-compliance, the airline can be fined an amount 10 times the first financial penalty.

“Essentially, the penalty matrix is already part of the MACPC, which came into effect since July last year.

“But we are now looking to making it operational and will introduce it by this year,” Pushpalatha told Sunday Star.

Examples of non-compliance include failing to indicate the final price of air fares, automatically adding on optional services to a customer’s purchase, and failing to provide compensation for lost, damaged or delayed baggage.

On the proposed penalties, Pushpalatha said Mavcom was drafting the penalties for various non-compliances based on previous data and its impact on consumers.

Pushpalatha said not all penalties require the maximum fine of RM200,000, and the proposed penalties would have to be approved by Mavcom commissioners before they are made public.

“We have also been engaging the airlines so that they are aware about our plans. Once the penalties are approved, all airlines flying in and out of Malaysia will have to comply with the provisions,” she added.

Pushpalatha said the aim of introducing the penalties was not to discourage the airlines, but to promote accountability in the industry.

“We ultimately want the industry to be self-regulated and provide good service to consumers. At the end of the day, it will benefit their customers and will be good for business,” she said.

The MACPC applies to all Malaysian and foreign airlines landing at Malaysian airports and was introduced to set minimum standards that ensure the rights of air passengers.

Among others, the code ensures that customers are entitled to meals, limited phone calls and Internet access for delays above two hours, or hotel accommodation and transport for delays above five hours.

To improve service at airports, Mavcom is also developing a regulatory framework to measure service levels based on users’ feedback.

“It will be a mechanism aimed to get feedback from airport users to ensure that airports provide quality service to consumers.

“This will be introduced in the third or fourth quarter this year,” Pushpalatha said, adding that the details are still being worked out.

Mavcom, which marked its first anniversary on March 1, received 1,639 complaints on airlines and airports in the past year, of which 95% were resolved.

Last year, air passenger traffic increased by 6%, with 88.83 million travellers flying in and out of the 39 airports managed by Malaysia Airports Holdings Bhd.

Of the number, some 52 million travellers passed through Kuala Lumpur International Airport.

Meanwhile, airlines are receptive towards Mavcom’s move, agreeing that defining penalties would promote better service in the industry.

Firefly chief executive officer Ignatius Ong said the maximum fine of RM200,000 was fair and believed that airlines would be encouraged to render their best service to customers.

“For Firefly, we have always placed customers’ experience as priority, and continuous improvement has always been there, irrespective of whether this code is introduced or otherwise,” he said.

Ong said the current standard of service by the various airlines, especially on delay management, flight cancellation and mishandled baggage, was inconsistent.

“With the code, perhaps less responsible airlines will come into line and treat customers fairly in future,” he added.

Ong also proposed for banks to work closely with airlines to enable faster refunds for passengers.

Malaysia Airlines said the penalties would encourage airlines to take ownership of service breakages.

“Malaysia is also a signatory to the Montreal Convention which protects the rights of aviation consumers. As the national airline, we stand guided by the convention and other regulations in the industry,” it said.

The airline encouraged passengers to write to its customer care department at any time they feel the airline has fallen short on service.

“We take every customer complaint seriously, with some requiring more time to resolve than others.

“However, the airline is committed to resolve all complaints as efficiently and quickly as possible,” it said.