April 17, 2020
PETALING JAYA: Two consumer groups have denounced the Malaysian Aviation Commission (Mavcom) for deciding to be lenient with airlines unable to meet the regulatory deadline in giving refunds to would-be passengers booked on flights that have been cancelled.
Speaking to FMT, spokesmen for the Federation of Malaysian Consumers Associations (Fomca) and the Malaysia Consumer Movement (MCM) accused the commission of siding with the airline industry at the expense of consumers.
Fomca chief executive Paul Selvarah said airlines should make cash repayments or, if they were offering credit notes, provide incentives to those accepting them.
“Consumers should have the right to cash repayments unless they are agreeable to other forms of restitution,” he said. “Airlines don’t have the right to force consumers to accept their terms.
“Mavcom, as a regulatory organisation, should ensure consumer protection and well-being.”
MCM president Darshan Singh Dhillon said allowing companies to decide on their own refund policy was unacceptable.
He said MCM had received numerous complaints against airlines refusing to give refunds.
Darshan said airlines should be ethical enough to allow customers to choose between credits, vouchers or refunds.
“There is no cost to the airlines since the journeys have not been performed,” he said. “So why refuse a refund?”
He alleged that some airlines had assigned their lawyers to scare customers by quoting provisions under the law.
Referring to a recent statement issued by the Malaysian Association of Tour and Travel Agents (Matta), Darshan said: “It is shocking to note that airlines are holding billions of ringgit in ticket money and tax collection. We wonder what portion is being held by our local players.”
He told Mavcom to come up with a solution instead of washing its hands of the matter.
He also said Putrajaya should intervene to protect consumers.
Mavcom said last week that it would be giving airlines some leeway in resolving complaints and giving refunds because it understood the challenges they were facing as a result of the Covid-19 pandemic.
It said it was doing so “in the spirit of facilitating the industry”, noting that air travel had been severely reduced, affecting airline revenue and cash flow.
Under the Malaysian Aviation Consumer Protection Code, airlines are required to resolve complaints and provide refunds to consumers within 30 days of the receipt of such complaints and claims.
Matta on Wednesday expressed concern over Mavcom’s decision, saying the vouchers and points offered by airlines would be useless if they went into liquidation.
“What if foreign airlines choose to cease operations in Malaysia? Has Mavcom taken all of these factors into account?” Matta president Tan Kok Liang said.
He also said Putrajaya should consider giving soft loans to local airlines to help them tide through their current difficulties.
