KUALA LUMPUR — April 9, 2020: The Malaysian Aviation Commission or Mavcom will give airlines more time to provide refunds to customers than the earlier time frame of 30 days.
But it also says that the refunds should be as timely as possible.
On Wednesday the Malaysian Association of Tour and Travel Agents expressed disappointment with the government for remaining silent on the possibility of passengers and travel agents having their cancelled flights refunded with the movement control order in place.
Mavcom acknowledged that with passenger travel having plummeted, airlines are suffering a sharp decline in revenue, thereby affecting their cashflow significantly.
“The financial challenges currently faced by airlines have also coincided with them needing to adopt varying forms of refunds, including cash, vouchers, credit shell or alternatively, deferment of travel, ” said Mavcom.
Mavcom also forecast that passenger traffic in Malaysia will decrease between 36.2% and 38.1% year-on-year this year.
It said that approximately 13.6 million seats or 12.3% of annual scheduled operations in Malaysia have been cancelled so far this year.
The International Air Transport Association also projects that Asia Pacific countries will see passenger demand reduce significantly this year.
Malaysia Airlines announced last month that it had cancelled more than 4,000 flights while AirAsia said it had limited the number of regional and domestic flights.