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Mavcom imposes penalties on AirAsia, AirAsia X and MA Sepang

0 month ago, 10-Sep-2019

The Malaysian Aviation Commission (Mavcom) has imposed on AirAsia Bhd and AirAsia X Bhd, a penalty of RM200,000 each for charging credit card, debit card and online banking processing fees separate from their base fare. – File photo

KUALA LUMPUR: The Malaysian Aviation Commission (Mavcom) has imposed on AirAsia Bhd and AirAsia X Bhd, a penalty of RM200,000 each for charging credit card, debit card and online banking processing fees separate from their base fare.

In a statement, Mavcom said AirAsia and AirAsia X werefound to have contravened subparagraph 3(2) of theMalaysia Aviation Consumer Protection Code 2016 (MACPC), which requires full disclosure of the final price of the airfare.

The Commission has been monitoring from June 1, 2019 for compliance with the new provisions of the MACPC.

As part of the due process to determine whether a contravention hadbeen committed, Mavcom issued show cause letters to both airlines and afforded opportunities to themto provide factors to mitigate the quantum of the penalties, it said.

Section 69(4) of the Malaysian Aviation Commission Act 2015 [Act 771] together withparagraph 22 of the MACPC empowers the Commission to impose a financial penalty fornon-compliance of the MACPC ofan amount not exceeding RM200,000, and in the case of asecond or subsequent non-compliance, an amount ten times of the financial penaltyimposed for the first non-compliance.

Upon thorough evaluation and taking intoconsideration the written representations by the airlines, the Commissionimposed the penaltyfor the first violation of subparagraph3(2) of the MACPC, for the period commencing June 1,2019 to Aug9,2019.

The MACPC came into effect on July 1, 2019, and was published in line with Mavcoms aim to protect the rights and interests of consumers.

Meanwhile, Mavcom also imposed a penalty of RM1,179,889onMalaysia Airports (Sepang) Sdn Bhd (MA Sepang),a subsidiary of Malaysia Airports Holdings Bhd, forfailing to meet several requirements of the Airports Quality of Service (QoS) Framework from January to March 2019.

The Airports QoS Framework commenced implementation at KLIA and klia2 on Sept 1, 2018 to improve airport service level for users including passengers, airlines and ground handlers.

Pursuant to section 98A(3)(b) of Act 771, the Commission isauthorised to impose an amount not exceeding five per cent of MA Sepangs annualturnover.

AirAsia, AirAsia X and MA Sepang received letters from the Commission on the imposition of the financial penalties on Sept 6, 2019.

Mavcoms executive chairman DrNungsari Ahmad Radhi said given the large consumer base of over 100 million passengers per annum, the Commission hadset the MACPC and Airports QoS Frameworkto protect the rights and interest of aviation 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 Mavcoms long term objectives for the industry, he added. – Bernama

Mavcom imposes penalties on AirAsia, AirAsia X and MA Sepang Borneo Post Online.




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