Airlines face fine for poor service

PETALING JAYA: Passengers who are unhappy about services provided by airlines can now seek redress under the Consumer Protection Code 2016 which came into effect on July 1.
Airline operators can be fined if found in breach of the rules and regulations under the code, which gives the Malaysia Aviation Commission (Mavcom) authority over consumer issues pertaining to the aviation industry.
Such grouses can include those regarding lost or delayed baggage and facilities for the disabled.
Travellers with a valid complaint can contact Mavcom which will then liaise with the airline concerned to seek a solution.
All aviation service providers operating in Malaysia are required by law to comply with the code which includes minimum service levels and standards for meeting consumer requirements, handling complaints and providing compensation.
Mavcom can investigate any consumer complaint which it receives and assist consumers and aviation service providers to resolve complaints.
A copy of the code sighted by SunBiz showed that Mavcom can impose a financial penalty to any person for non-compliance with some parts of the code.
The fine is not more than RM200,000, but in the case of a second or subsequent non-compliance, it will be 10 times of the financial penalty which was imposed for the first non-compliance.
Prior to the code coming into effect, no single airline has ever been fined for non-compliance.
Other details of the code include prohibition of post-purchase price increase, automatic add-on services and discrimination of persons with disability, among others.
The code also states passengers' rights in the case of compensation for lost, damaged or delayed baggage, flight delay and cancellation as well as being denied boarding.
Analysts applauded the introduction of the Consumer Protection Code, which aims at defending consumers' rights and interests, especially when there have been a lot of complaints received in relation to the aviation industry.
"Now you've a place to file your complaint, the commission will take action against the airlines on behalf of the consumers," said an analyst, who declined to be named.
MIDF Research analyst Tay Yow Ken concurred, saying that there will be not much changes to the existing business or visible difference in cost.
Hong Leong Investment Bank (HLIB) Research analyst Daniel Wong, however, cautioned that it may increase the cost of doing business.
"They need to adhere to the possible new regulations and the operational cost in terms of compliance may be higher," he opined.