Thursday, August 29, 2024 Airlines in Malaysia are now required to offer refunds to passengers if their flight is delayed by five hours or more, as the country joins the global effort to enhance consumer air-travel rights. This move aligns Malaysia with other nations that are tightening regulations to protect passengers amid increasing concerns over airline practices. Transport regulators worldwide are urging airlines to improve their standards following a series of flight disruptions and questionable business practices that have triggered widespread calls for reform.
For instance, Qantas Airways Ltd. in Australia faces a lawsuit for allegedly selling tickets on thousands of flights that were later canceled. Malaysia’s new regulations, effective Monday, will also cover passengers who decide not to take the delayed flight and instead choose to book another flight.
These passengers will also be eligible for a refund. The nation’s flagship carrier, Malaysia Airlines, has been experiencing ongoing disruptions due to engine-related issues on its Airbus SE A330 aircraft. As a result, the airline announced earlier this month that it will need to scale back its flight network from now until December.
According to Malaysia’s transport ministry, refunds must be provided using the original payment method. This development follows similar actions taken by the US Department of Transportation, which earlier this year mandated airlines to issue automatic refunds for flights that are canceled or significantly delayed. The move in the US was prompted by a surge in complaints about airlines either refusing or delaying refunds.
Australia, meanwhile, is exploring comprehensive reforms to enhance competition and consumer rights in the aviation sector, including measures to simplify the refund process for passengers. Qantas CEO Vanessa Hudson, in a recent discussion with investors after the airline released its full-year financial results, stated that mandating refunds for cancellations and delays would inevitably increase ticket prices as airlines attempt to recover these additional costs. Malaysia has also stated that airlines violating the new regulations could face fines of up to 200,000 ringgit ($46,000), with the possibility of higher penalties for repeat offenses.
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