Monday, February 6, 2023

AirAsia X Plans To Reimburse Its Customers 0.5 sen For Every Ringgit They Paid Under Its Restructuring Plan

NewsAirAsia X Plans To Reimburse Its Customers 0.5 sen For Every Ringgit...

The Malaysian Aviation Commission (MAVCOM) has urged AirAsia X Bhd (AAX) to reimburse its customers whose flight were being cancelled, after the airline proposed to pay a 0.5 sen for every ringgit the customers paid as part of its restructuring process.

Under this plan, it means that AirAsia X’s customers will only be getting RM5 for each RM1,000 they paid to the airline, who has a debt of around RM33.6 billion.

In a media statement by MAVCOM said the exercise is in line with MAVCOM’s mandate to regulate economic and commercial matters relating to civil aviation in Malaysia and its commitment to protecting air travel consumer rights.

Source: Nikkei Asia

MAVCOM also said that AAX should not treat its customers as creditors as they paid for their tickets and did not loan money to the airline.

Meanwhile, the regulator also said that it will exercise its authority through the provisions provided by the Malaysian Aviation Commission Act 2015 (Act 771), if AAX fail to reimburse the flight tickets.

“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 said.

However, MAVCOM didn’t specify how much AAX should reimburse or timeline that AAX need to adhere though.

Previously, AAX has announced the creditor’s support for its Scheme of Arrangement after AAX co-founder, Tony Fernandes said AAX intends to reimburse all is customers affected by the restructuring with travel credits.

The plan was first announced in October 2020 and it seems like it will be staying, unless MAVCOM is able to convince, pressure, or threaten AAX to do otherwise.

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