APRIL 17 — Airlines operating in Malaysia have indicated that approximately 13.6 million seats have been cancelled, which literally means that hundreds of millions of hard-earned consumers ringgit have been stuck with the airlines.
By right, these fares need to be refunded immediately after the flights were cancelled. That is the right of consumers.
Yet Air Asia has “urged” for consumers to accept credit for replacement flights. And further this credit must be used in 365 days; failing which consumers lose their money.
With millions of workers expected to lose jobs or earn reduced incomes it is for sure that many who had planned to fly earlier for holidays will be cancelling their plans due to the new devastating economic scenario. The airlines will then be earning millions without providing any service.
The consumers who had booked flights and lost their jobs will also lose their flight fares. Yet what is Malaysian Aviation Commission’s (Mavcom) response. Instead of protecting consumers it allows the airlines leeway to refuse giving consumers their refunds.
A so-called regulatory agency established to protect consumers and funded by consumers decides that consumers will not be protected; airlines profits will be protected. A sad and miserable performance for the agency.
While there is indeed nothing wrong for Air Asia to “urge” consumers to accept credit for future flights the choice to do so must lay in the hands of the consumers. Consumers have a right to their refund within a reasonable time. That is their automatic right.
However, consumers may choose to accept the credit terms instead of cash. Why would they do that? The airlines need to incentivise the acceptance of credit to encourage consumers to accept credit instead of cash.
Fomca has been getting numerous complaints from consumers. Those who have contacted the airlines demanding refunds have been given a run around. Sadly, those who then contacted Mavcom to complain have been given stock answers that “the airline has been notified to respond within a 30 day period.”
That clearly indicates that the inability of Mavcom to address consumers complaints and issues effectively.
Fomca suggests that consumers receive their refunds within a reasonable time. Failing which interest charges be imposed so that there is penalty for misusing the consumers’ monies for an extended period of time. The longer the wait the higher the interests’ charge which would be paid to consumers.
Consumers can certainly as “urged” opt for credit for future flights but on their terms. Forcing consumers to use their credit within 365 days is simply ridiculous. Every household is undergoing economic turmoil, a holiday would certainly not be in their priorities within the year.
In the final analysis, consumers have a right to decide how they want their refunds. Mavcom, if it is to be a responsible consumer protection agency, should ensure consumer rights are protected.
Fomca urges Mavcom to play their role effectively.
* Press release from Datuk Marimuthu Nadason, president of Federation of Malaysian Consumers Associations (Fomca) on April 17.
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
