KUALA LUMPUR – The Malaysian Aviation Commission (Mavcom) is set to take action against AirAsia X Bhd, should the low-cost carrier fail to reimburse its customers for tickets purchased.
In a statement yesterday, the commission said its decision is in line with its mandate to regulate economic and commercial matters relating to civil aviation in Malaysia, and its commitment to protect air travel consumer rights.
“Mavcom had on Thursday issued a letter to (AirAsia X) in response to its ongoing debt restructuring exercise.”
“In this letter, Mavcom has clearly and unequivocally urged AirAsia X to reassess its proposal to treat air travel consumers as creditors and to pay only 0.5% of the value of tickets purchased as announced on October 18,” the statement reads.
The aviation regulatory body asserted that air travel consumers should not be classified as ‘creditors’, given they do not sell products, services, or provide loans to AirAsia X.
Instead, these travellers paid monies to purchase flight tickets in advance.
Thus, Mavcom says, AirAsia X should reimburse its customers for their purchased tickets.
In the event AirAsia X fails to do so, Mavcom threatened legal action.
“If AirAsia X fails to reimburse the affected air travel consumers accordingly, Mavcom will not hesitate to exercise its powers under the Malaysian Aviation Commission Act 2015.
“AirAsia X has repeatedly in its correspondence with Mavcom and in their statements made to the public given the assurance that AirAsia X is committed to reimburse air travel consumers who were not able to fly due to flight cancellations,” the statement added.
On October 18, AirAsia X announced that it only plans to pay 0.5% of debt owed to creditors as per its debt restructuring plan.
AirAsia X said, unless the debt restructuring plan is adopted, the company may not be able to avoid liquidation.
It is understood that the 0.5% of debt owed to each creditor will be paid from operating cash flow one year after the debt restructuring plan goes into effect. – The Vibes, November 13, 2021
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