Mavcom says air travel consumers not creditors, wants AirAsia X to reimburse customers for tickets purchased

Tail of AirAsia X plane as seen at the Garuda Maintenance Facility AeroAsia in Tangerang, Indonesia, September 20, 2017. — Reuters pic
Tail of AirAsia X plane as seen at the Garuda Maintenance Facility AeroAsia in Tangerang, Indonesia, September 20, 2017. — Reuters pic

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KUALA LUMPUR, Nov 12 — The Malaysian Aviation Commission (Mavcom) said it “has clearly and unequivocally urged AirAsia X Bhd (AAX) to reassess its proposal to treat air travel consumers as creditors and to pay only 0.5 per cent of the value of tickets purchased as announced on October 18, 2021.”

Mavcom said it “takes the view that air travel consumers ought not to be classified as creditors as air travel consumers did not, inter alia, sell any products, provide services or make loans to AAX but instead have paid monies for the purchase of tickets in advance of their flights.”

“Accordingly, Mavcom reiterates its position that AAX should reimburse air travel consumers for the tickets purchased. If AAX fails to reimburse the affected air travel consumers accordingly, Mavcom will not hesitate to exercise its powers under the Malaysian Aviation Commission Act 2015 (Act 771),” the civil aviation regulator said in a statement.

The aviation commission has stressed its commitment to discharge its duties under the Malaysian Aviation Consumer Protection Code to ensure that air travel consumer rights are safeguarded.

On November 11, 2021, Mavcom issued a letter to AAX in response to its ongoing debt restructuring exercise.

According to Mavcom, “AAX has repeatedly in its correspondence with Mavcom and in their statements made to the public, given the assurance that AAX is committed to reimburse air travel consumers who were not able to fly due to flight cancellations.” — Bernama

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