Loke: Airlines must offer refunds for long flight delays

The new enhancements to the Malaysian Aviation Consumer Protection Code 2016 (MACPC), set to be gazetted this September, mandate that airlines provide refunds to passengers for significant flight delays if they choose not to continue their journey.

This update, announced by Transport Minister Anthony Loke, aims to bolster consumer rights in air travel across Malaysia.

Enhanced consumer protection measures

Under the revised MACPC, airlines are obligated to offer passengers the option of a full refund in the original mode of payment for delays extending five hours or more.

Loke emphasised that while airlines can propose alternative reimbursement options like travel vouchers or credit shells, the final choice rests with the consumer.

“Airlines must prioritise the passenger’s preference for the refund method,” he stated during a recent press conference.

Additionally, the MACPC now stipulates a 30-day period for processing refunds, contingent on the passenger’s payment method.

The code also enforces mandatory refunds of fuel surcharges, taxes, fees, and charges—including emission levies, Passenger Service Charges (PSC), and carbon fees—for both refundable and non-refundable tickets if the flight is not utilised.

Improved transparency and accountability

To further protect consumers, airlines are now required to remove any cancelled flights from all booking systems, including those managed by online and offline travel agents.

This measure aims to prevent confusion and ensure transparency.

Furthermore, any instances of denied boarding due to overbooking must be communicated at the check-in counter or departure gate.

Denying passengers who have already boarded the aircraft is strictly prohibited.

The code also extends the period for passengers to lodge complaints from one year to two years, allowing more time for addressing grievances.

Effective January next year, airlines must notify consumers of any changes to the Scheduled Departure Time (STD) at least two weeks in advance unless the delay is due to extraordinary circumstances or unavoidable technical issues.

Failure to adhere to the updated MACPC could result in significant financial penalties.

Loke warned that airlines could face fines up to RM200,000 for initial non-compliance, with subsequent violations incurring penalties ten times the original amount.

Since the implementation of MACPC in 2016, airlines have faced RM4.7 million in penalties for non-compliance.

Loke also assured that these improvements are designed to provide stronger protections for aviation consumers.

“MAVCOM will continue to monitor airline performance to ensure compliance with the established industry benchmarks, all for the benefit of consumers,” he noted.

The revised MACPC reflects the government’s commitment to enhancing consumer rights in air travel, ensuring that passengers receive fair treatment and timely information about their flights.