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MAVCOM Penalises AirAsia, AirAsia X and MA Sepang, subsidiary of MAHB

20 Jan, 2020

 

MAVCOM Penalises AirAsia, AirAsia X and MA Sepang, subsidiary of MAHB
Airlines breached consumer protection code and airport operator failed to meet quality of service standards

 

KUALA LUMPUR, 20 January 2020 – The Malaysian Aviation Commission (MAVCOM) has imposed financial penalties on AirAsia Berhad (AirAsia), AirAsia X Berhad (AirAsia X) and Malaysia Airports (Sepang) Sdn. Bhd. (MA Sepang), which is a subsidiary of Malaysia Airports Holdings Berhad (MAHB).

The financial penalties imposed on AirAsia and AirAsia X, amounting to RM2,000,000 each, were due to the airlines’ continued charging of credit card, debit card and online banking processing fees separate from their base fares, in contravention of the Malaysian Aviation Consumer Protection Code 2016 (MACPC), for the period from 10 August 2019 to 11 September 2019. This is the second time AirAsia and AirAsia X have been found not in compliance with this MACPC requirement. MA Sepang, on the other hand, was penalised RM856,875 due to their failure to meet targets set by MAVCOM in its Airports Quality of Service Framework (Airports QoS Framework) during the second quarter of 2019.

AirAsia, AirAsia X and MA Sepang were informed of their respective financial penalties on 16 January 2020.

AirAsia and AirAsia X Penalised for Contravening Consumer Protection Code

The MACPC came into force on 1 July 2016, and was subsequently enhanced with amendments that took effect on 1 June 2019 to further protect consumers’ interests. One of the amendments, subparagraph 3(2) of the MACPC, imposes disclosure requirements for airline fares.Section 69(4) of the Malaysian Aviation Commission Act 2015 [Act 771] together with paragraph 22 of the MACPC, empower the Commission to impose a financial penalty for a non-compliance of the MACPC, an amount not exceeding RM200,000 and in the case of a second or subsequent non-compliance, an amount ten times of the financial penalty which was imposed for the first non-compliance.

The Commission had previously in September 2019 imposed financial penalties of RM 200,000 each for AirAsia’s and AirAsia X’s first contravention of subparagraph 3(2) of the MACPC for charging credit card, debit card and online banking processing fees separate from their base fares, in contravention of subparagraph 3(2) of the MACPC, for the period from 1 June 2019 to 9 August 2019.

As both AirAsia and AirAsia X have been found to contravene subparagraph 3(2) of the MACPC again, even after the imposition of financial penalty for their first non-compliance, MAVCOM has decided to impose both airlines a penalty of RM 2,000,000 each, being ten times the financial penalty imposed in September 2019, for the period from 10 August 2019 to 11 September 2019 as prescribed by Act 771.

MA Sepang Failed to Meet Quality of Service Standards

The Airports QoS Framework, which came into effect at both KL International Airport Terminals 1 and 2 (KLIA and klia2) on 1 September 2018, was introduced to ensure that airport operators provide consumers good standards of infrastructure and services at airports.

MAVCOM found that MA Sepang failed to meet several requirements of the Airports QoS Framework during the period of 1 April 2019 to 30 June 2019. In accordance with section 98A(3)(b) of Act 771, the Commission imposed a financial penalty amounting to RM 856,875 on MA Sepang.

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