Fomca: AirAsia X scamming travellers by paying back only 0.5% of ticket purchase price

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Reimbursing customers only 0.5% of the purchase price of AirAsia X tickets is a scam on consumers, the Federation of Malaysian Consumers Associations (Fomca) said today.

Its secretary-general Paul Selva Raj said it also supports actions being taken by the Malaysian Aviation Commission (Malcom) against the airline.

“The airline has shown themselves clearly insensitive to consumers’ rights and their welfare and are so arrogant that they are not worried about the regulator’s actions to protect the affected consumers,” he said in a statement today.

Last week, Mavcom urged AirAsia X to reimburse the tickets for customers whose flights were cancelled, in response to the airline’s action of treating its customers as creditors and repaying them only 0.5 sen for RM1 paid.

This comes after AirAsia X’s creditors passed its restructuring plan, which will see the airline pay just 0.5% of some RM33.65 billion in liabilities, as well as terminate all of the airline’s existing contracts.

Tickets sold to passengers and travel agents amounting to just under RM600 million have been categorised as liabilities. Under the restructuring, only under RM3 million will be paid back.

The Malaysian Insight has contacted AirAsia for comments and is waiting for their response.

Mavcom said it will not hesitate to exercise its powers under the Malaysian Aviation Commission Act 2015 (Act 711), if the airline fails to reimburse its consumers accordingly.

The commission also said that the consumers should have been classified as creditors instead of liabilities.

“Fomca fully supports the statement by Mavcom that the airline should refund the affected consumers the amount equivalent to the cost of the ticket at the time of purchase, including taxes, charges and fees under any written law and charges for optional services.

“Without a strong position by the regulators, the airlines would certainly impose unfair and unjust terms to the consumers; paying 0.5% of the ticket price is certainly unfair and unjust. The only protection for the Malaysian consumer is the protection accorded by Mavcom.” – TMI