KUALA LUMPUR (Sept 2): All airlines are now required to offer refunds to passengers in their original mode of payment within 30 days for rescheduling or delaying flights on the day of departure by five hours or more, according to Malaysian Aviation Commission (Mavcom).

If a flight's departure time is changed by the airline, consumers are eligible for a refund if the new departure time is more than five hours earlier or later than the original time, Mavcom director of consumer and public affairs Pushpalatha Subramaniam told a media briefing.

For flights delayed by two hours or more, airlines must provide meals, phone calls and internet access. If a flight is delayed longer than that and an overnight stay becomes necessary, then airlines must also provide hotel accommodation as well as transport to the hotel and airport.

This new mandate is part of the newly-gazetted Malaysian Aviation Consumer Protection Code 2016 (MACPC) that took effect on Monday. Airlines were previously not obligated to provide refunds.

“MACPC is applicable whenever flight disruptions occur in Malaysia. This applies to all airlines including foreign airlines operating in and out of Malaysia,” Pushpalatha said.

At the same time, airlines can offer alternatives such as travel vouchers or credit shells or an open ticket, in lieu of money. Consumers can choose which mode of refund is preferred, said Mavcom.

MACPC also requires airlines to fully refund mandatory charges — such as fuel surcharge, taxes, fees, departure levy, passenger service charges (PSC) and carbon fee. “Airlines are also required to remove any cancelled flights from all booking platforms immediately,” said Pushpalatha.

Meanwhile, boarding denial must be done at the check-in counter or departure gate, before the consumer boards the aircraft.

On top of these, Mavcom has extended the time limit for submitting a complaint to up to two years.

Notify passengers of delayed flights at least 24 hours before departure

On the change in flight status, airlines must notify passengers when flights are delayed by more than three hours, said Mavcom. "This notification should be provided as soon as the new departure time is determined or at least 24 hours before departure," Pushpalatha said.

Starting January 2025, all airlines will be barred from making changes to flight dates within two weeks of departure, except in extraordinary circumstances or due to technical reasons.

Pushpalatha said the decision to introduce mandatory refunds was made in response to numerous feedback from passengers as well as airline operators.

“We had a lot of discussions. We have taken some of the feedback on board. We did not ignore them. However, there's some executive decisions that we had to make,” she explained.

She added that Mavcom will monitor events to ensure that airlines comply with the new provisions.

“Consumers are also encouraged to submit a complaint to Mavcom if they detect a cancelled flight that is still being sold on any booking platforms,” she said.

Last Friday, Capital A Bhd (KL:CAPITALA) chief executive officer Tan Sri Tony Fernandes was reported as saying that he supports the government's regulation requiring airlines to fully refund passengers for flights delayed by five hours or more.

According to him, Capital A has been working to implement policies to provide refunds or alternative arrangements for passengers affected by significant delays.

However, Fernandes said that it is also important to consider factors beyond the airline's control when determining responsibility for delays.