LETTER | Mavcom fails M'sian consumers

LETTER | 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' money are stuck with the airlines.

These fares should have been immediately refunded after the flights were cancelled. That is the right of consumers.

Yet Air Asia has “urged” for consumers to accept credit for replacement flights. Furthermore, this credit must be used within 365 days and failing which, consumers will 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. These airlines will then earn millions without providing any service. Consumers who had booked flights and lost their jobs will also lose their flight fares

Yet what is the Malaysian Aviation Commission’s (Mavcom) response? Instead of protecting consumers, it allows airlines leeway to refuse giving refunds. A so-called regulatory agency established to protect consumers and funded by consumers decides that consumers will not be protected and instead the profits of airlines will be protected. This is a sad and miserable performance for the agency.

While there is indeed nothing wrong for AirAsia 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 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 runaround. Sadly, those who then contacted Mavcom to complain have been given stock answers such as “the airline has been notified to respond within a 30 day period”. That clearly indicates the inability of Mavcomto to address consumers complaints and issues effectively.

It suggests that consumers receive their refunds within a reasonable time. Failing which interest charges be imposed so that there is a penalty for misusing the consumers’ monies for an extended period of time. The longer the wait, the higher the interest charge which would be paid to consumers.

Consumers can certainly be “urged” to 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 and 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.

Foma urges Mavcom to play its role effectively.

The writer is Federation of Malaysian Consumers' Associations (Fomca) president.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

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