Capital A says it supports new refund rules

Saturday 02 Nov 2024

KUALA LUMPUR (Aug 30): Capital A Bhd (KL:CAPITALA) supports the government's regulation requiring airlines to fully refund passengers for flights delayed by five hours or more, said its chief executive officer Tan Sri Tony Fernandes.

However, Fernandes stressed that it is also important to consider factors beyond the airline's control when determining responsibility for delays.

“That is our responsibility and we fully support it,” Fernandes told reporters at the launching of flights to East Malaysia in Subang Airport on Friday.

He noted that the company has been working to implement policies to provide refunds or alternative arrangements for passengers affected by significant delays.

“We have already done it. So, it is right and fair for passengers to rebook. But, running an airline is very tough, as we rely on suppliers giving us engines and spare parts and lots of things,” he said.

“I think it's correct if the airline is at fault. But I think it is always easy to blame the airline — there are many issues, as you have seen, CrowdStrike [global IT outage] recently happened — as well as aircraft traffic and weather,” he added.

Starting September, all airlines will be required to provide full refunds to passengers whose flights are delayed by five hours or more, Transport Minister Anthony Loke announced on Wednesday.

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.

Edited ByAdam Aziz

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