KUALA LUMPUR — Sept. 10, 2019: The Malaysian Aviation Commission (Mavcom) has penalised AirAsia and AirAsia X RM200,000 each for charging credit card, debit card and online banking processing fees separate from their base fares in contravention of the Malaysia Aviation Consumer Protection Code 2016 (MACPC).
A statement said that Mavcom has been monitoring from last June 1 for compliance with the new provisions of the code.
“As part of the due process to determine whether a contravention had been committed, Mavcom issued show cause letters to both airlines and afforded opportunities to them to provide factors to mitigate the quantum of the penalties,” it said.
Upon thorough evaluation and considering the written representations by the airlines, Mavcom imposed the penalty for the first violation from June 1 to August 9.
The code came into effect on July 1 and was published in line with Mavcom’s aim to protect the rights and interests of consumers.
Mavcom also imposed a penalty of RM1,179,889 on Malaysia Airports (Sepang) Sdn. Bhd. (MA Sepang), a subsidiary of Malaysia Airports Holdings Berhad, for failing to meet several requirements of the Airports Quality of Service (QoS) Framework from January to March.
The framework commenced implementation at KLIA and klia2 on September 1 last year to improve airport service level for users, including passengers, airlines and ground handlers.
AirAsia, AirAsia X and MA Sepang received letters from Mavcom on the imposition of the financial penalties on September 6.
Mavcom’s executive chairman Dr. Nungsari Ahmad Radhi said given the large consumer base of over 100 million passengers per annum, Mavcom had set the MACPC and framework to protect the rights and interest of consumers.
These actions (regulations) are also intended to move the aviation industry in Malaysia towards an improved level of service, integrity and transparency, in line with Mavcom’s long term objectives for the industry, he said.
In a filing with Bursa Malaysia today, AirAsia Group said MA Sepang, through its solicitors on Sept. 6 served the Garnishee Show Cause Orders dated Aug. 23 on three of AirAsia’s banks, directing them to set aside certain funds for the payment of the judgment sums.
According to MAHB’s announcement to the local bourse on July 18, a Kuala Lumpur High Court had granted a summary judgment order in favour of MA Sepang for RM40.72 million in unpaid PSC and a RM792,382 in unpaid late payment charges.
“We will be taking the necessary action to preserve our interest. Further updates in respect of any material development on the matter will be made from time to time in compliance with the requirements of the main market listing requirements of Bursa Malaysia,” said AirAsia. — Bernama