Why should passengers apply for a refund?

It goes without saying that companies should refund customers the money they have paid for services or goods that were not delivered. Otherwise, they can seek redress in court or at the consumer tribunal.

Industries that are regulated must also comply with additional rules imposed by the relevant government authority; in the case of airlines, this is the Malaysian Aviation Commission (Mavcom).

In 2017, passenger service charge (PSC) was raised and Mavcom chairman Abdullah Ahmad said, "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 hot air the following year when passengers were not refunded for cancelled flights in 2020, which is too painful to discuss here again.

Recently, on Sept 2, Malaysia Airlines flight MH66 bound for Seoul, South Korea, was forced to turn back after a delayed take-off from Kuala Lumpur International Airport.

In numerous reports, Mavcom was quoted as saying that airlines must reimburse consumers within 30 days.

I find the headlines disturbing as refunds are given by virtually all companies and are not a big deal to warrant reporting.

The reports would have more substance if passengers were entitled to compensation for costs incurred, such as cancellation fees charged by hotels.

In addition, a token amount could be paid for inconvenience, as it would be difficult to estimate the cost of lost opportunities, which can be very high for business travellers. However, simply informing passengers that they can claim a refund if their flight is cancelled was more like lip service.

Instead, airlines should be obliged to make refunds automatically, without passengers having to submit a request. If the refund is not made within 30 days, there must be extenuating circumstances for the cancellation.

How long do passengers have to wait to achieve the level of protection required by Mavcom?

The views expressed in this article are those of the author(s) and do not necessarily reflect the position of MalaysiaNow.