PUTRAJAYA: Starting next month (September), airlines will be required to offer customers the option of a refund of the original price of payment for flight delays of five hours or more.
Transport Minister Anthony Loke said this change comes as a result of actions taken by the Malaysian Aviation Commission (MAVCOM) to enhance the Malaysian Aviation Consumer Protection Code 2016 (MACPC), which aims to provide better protection for air travelers.
"For flight delays of five hours or more, airlines are now required to offer customers the option of a refund in the form of its original payment price.
"This is a new option for customers who do not wish to continue their journey," Loke told a press conference.
In addition, airlines are required to first offer a refund in the original price for flight disruptions caused by extraordinary circumstances, such as bad weather.
Loke said that for such circumstances, airlines may also offer alternative refund methods, but customers have the right to choose the refund method they prefer.
He added that mandatory refunds cover fuel surcharges, taxes, fees, and charges such as departure levies and Passenger Service Charges. This applies to both refundable and non-refundable tickets for flights that were not used.
Under updated Malaysian Aviation Consumer Protection Code 2016 (MACPC) regulations, all canceled flights must be removed from all booking systems, including online and offline travel agency platforms.
Any changes to the Scheduled Departure Time (STD) must be communicated to customers at least two weeks before the actual departure time, unless due to extraordinary circumstances or unavoidable technical issues.
"This provision (regarding changes to the STD) will take effect in January 2025," Loke said.
Furthermore, airlines must inform passengers of any denied boarding due to overbooking at the check-in counter or departure gate and denying boarding to passengers who have already boarded the aircraft is prohibited.
"The time limit for customers to submit complaints has now been extended from one year to two years," Loke said.
"Failure to comply with MACPC may result in a maximum financial penalty of RM200,000. In cases of second or subsequent non-compliance, a penalty 10 times the amount of the initial financial penalty will be imposed," Loke added.