Is MAVCOM merely advocating refunds without compensation for lost opportunities?

Letter to editor

IT IS a given that businesses should return the money paid for services or goods not delivered to customers. Otherwise, disgruntled buyers could file a lawsuit in court or seek redress at the Consumer Claims Tribunal if the amount is not more than RM50,000.

Industries that are regulated such as airlines must also comply with additional rules imposed by the overseeing government agency, notably the Malaysian Aviation Commission (MAVCOM) which was established in 2016.

On Jan 1, 2017, MAVCOM raised passenger service charge (PSC) with its then executive chairman Tan Sri Abdullah Ahmad justifying: “Our work on the PSC review aims to safeguard consumer interests, promote fair competition and ensure airport operators continue to enhance their service levels.

“At the same time, the commission will continue to strive for consumer protection through the Malaysian Aviation Consumer Protection Code.”

These words turned out to be more like hot air when passengers did not receive refunds for cancelled flights in 2020 (when the COVID-19 pandemic struck) which is too painful to revisit and discuss here.

More recently on Sept 2, Malaysia Airlines Flight MH66 heading for Seoul, South Korea was forced to return after a delayed take-off from the Kuala Lumpur International Airport (KLIA).

Subsequently, there were many reports by the local media with headings such as “Airlines must refund consumers within 30 days, says MAVCOM”; “Passengers of Seoul-bound Malaysia Airlines flight entitled to refund, says MAVCOM”; “MAVCOM: Malaysia Airlines passengers can claim refunds after Seoul flights turns back to KLIA after departure”; “MAVCOM: Airlines must refund passengers via original mode of payment within 30 days”; and  “Passengers of cancelled MAS flight entitled to refund, says MAVCOM”.

I find all the above headings disturbing as refunds are given by virtually all businesses and are no big deals to warrant reporting. The reports would have more substance if passengers were entitled to compensation for expenses incurred such as cancellation charges imposed by hotels.

Additionally, a token sum could be paid for inconveniences as it would be difficult to estimate the cost of lost opportunities which can be huge for those travelling on business.

But to merely inform passengers that they could claim refunds for flight cancellation is more like paying lip service.

Instead, airlines should be made to refund automatically without requiring passengers to file a claim. If not given within 30 days, there must be extenuating circumstances for failure to do so.

How long must air passengers wait to get the level of protection professed by MAVCOM?

 

YS Chan
Kuala Lumpur

 The views expressed are solely of the author and do not necessarily reflect those of MMKtT. 

- Focus Malaysia.