Mavcom To Act if AirAsia X Fails to Reimburse Consumers

In line with the Malaysian Aviation Commission’s (“MAVCOM”) mandate to regulate economic and commercial matters relating to civil aviation in Malaysia and its commitment to protecting air travel consumer rights, MAVCOM, on 11 November 2021, had issued a letter to AirAsia X Berhad (“AAX”) in response to its ongoing debt restructuring exercise. This letter follows from MAVCOM’s various earlier correspondence with AAX. 

In this letter, MAVCOM has clearly and unequivocally urged AAX to reassess its proposal to treat air travel consumers as creditors and to pay only 0.5 per cent of the value of tickets purchased as announced on 18th October 2021. MAVCOM takes the view that air travel consumers ought not to be classified as “creditors” as the air travel consumers did not, inter alia, sell any products, provide services or make loans to AAX but instead have paid monies for the purchase of tickets in advance of their flights. Accordingly, MAVCOM reiterates its position that AAX should reimburse air travel consumers for the tickets purchased.

If AAX fails to reimburse the affected air travel consumers accordingly, MAVCOM will not hesitate to exercise its powers under the Malaysian Aviation Commission Act 2015 [“Act 771”].

AAX has repeatedly in its correspondence with MAVCOM and in their statements made to the public, given the assurance that AAX is committed to reimburse air travel consumers who were not able to fly due to flight cancellations. 

MAVCOM is committed to discharging its duties under Act 771 and the Malaysian Aviation Consumer Protection Code in ensuring that air travel consumer rights are safeguarded.