Airlines must soon offer full refunds for delayed air passengers

KUALA LUMPUR: Beginning next week, airlines will have to offer the option of a full fare refund to passengers of flights delayed for five hours or more, says Transport Minister Anthony Loke.

The move follows amendments to the Malaysian Aviation Commission’s (Mavcom) Malaysian Aviation Consumer Protection Code (MACPC) 2016.

Loke said airlines are now also required to offer the option of a refund in the original mode of payment.

He said this will only apply to passengers who choose not to proceed with the delayed flight.

“In cases where a passenger’s flight is delayed for more than five hours and is forced to take another flight, it will incur additional costs for them as it is a last-minute purchase.

“At the very least, there is an alternative for the passenger where they can opt for another flight, and also a refund for the delayed flight,” he told a press conference here yesterday.

Prior to the amendments, airlines were only required to provide meals, phone calls, Internet access and hotel accommodation where overnight stay is necessary, for flight delays of five hours or more.

Loke said the existing requirement for airlines to offer free hotel accommodation for passengers delayed for five hours or more would remain.

“They can choose either the hotel or the refund,” he said, adding that refunds must be fulfilled within 30 days.

“The refunds also have to be offered through the original payment method. If the payment was made through credit card, the refund has to go through that,” he said.

Other amendments to the MACPC will see monetary refunds applicable for flights disrupted due to extraordinary circumstances.

“Here, airlines can also offer refunds in alternative forms like travel vouchers or credit shells.

“Consumers, however, have the choice to decide on their preferred refund method,” Loke said.

On changes in a flight’s scheduled time of departure, he said passengers must be notified at least two weeks prior to the date unless the change involves extraordinary circumstances or unavoidable technical issues.

This, he said, will come into effect in January next year.

“All cancelled flights must also be removed from all booking platforms, including online and offline travel agents.

“This is to protect consumers from purchasing tickets for unavailable flights.”

Loke said passengers of overbooked flights must be informed either at the check-in or departure gates.

“This is to avoid instances where a flight is overbooked, with the passenger already boarding and later told to go down.”

He said the time limit for passengers to lodge complaints has also been extended from one year to two.

“Through the improved MACPC, consumers will be guaranteed increased protection during flights.

“Mavcom will monitor airlines to ensure they adhere to industry benchmarks,” he added.

Loke said airlines that do not adhere to the now amended MACPC will be slapped with a maximum penalty of RM200,000.

Subsequent violations would result in a ten-fold increase in the penalty fee issued for the first offence.

He also said a cumulative RM4.7mil in penalties were issued since the code of conduct was introduced in 2016.