PUTRAJAYA (Aug 28): Airlines will be required starting next month to fully refund passengers for flights delayed by five hours or more.
Passengers can opt for a full refund if they wish to cancel their journey, and airlines must issue refunds through the original mode of payment, said Transport Minister Anthony Loke. All cancelled flights must be removed from booking systems, including online and offline travel agent platforms, he said.
“This is to protect users from buying cancelled flight tickets,” he said at a news conference.
The policy is part of the changes made to the Malaysian Aviation Consumer Protection Code 2016, which will be gazetted on Sept 2. The regulation is aimed at ensuring transparency on airlines' obligations and providing clear guidance on consumer rights during flight disruptions.
Failure to comply with the regulation can result in a maximum penalty of RM200,000 with subsequent non-compliance resulting in a penalty 10 times greater than the initial fine.
For flight disruptions caused by unforeseen circumstances, airlines must first offer refunds but may also provide alternative reimbursement options such as travel vouchers or credit shells, Loke said.
“However, users have the right to choose their preferred mode of refund,” he said. “The refunds will be made within 30 days.”
Airlines are also required to reimburse fuel surcharges, taxes, fees, and charges such as emission levies, passenger service charges and carbon fees, for both refundable and non-refundable tickets if the flight is not taken by the passenger, Loke noted.
Any change in the scheduled departure time must be notified to passengers at least two weeks before the actual departure, unless due to extraordinary circumstances or unavoidable technical problems, effective January 2025.
Other improvements include requiring airlines to notify passengers of denied boarding due to overbooking at check-in or the gate, prohibiting denial after boarding, and extending the complaint submission period from one year to two years.
With the regulatory enhancements, “passengers can be assured of better protection during air travel”, Loke said. The Malaysian Aviation Commission will also continue to monitor airline performance to ensure compliance with industry standards, he said.
The slew of changes comes as national flag carrier Malaysia Airlines faces pressure from passengers over recent flight disruptions that left many stranded at airports.
On Saturday, Malaysia Aviation Group Bhd, the airline's parent company, announced it would temporarily reduce its network from now until December to implement corrective measures as needed.