Malaysia to refund passengers if flights are delayed by more than five hours

New rules that come into effect from Monday are part of revisions to Malaysian Aviation Consumer Protection Code 2016

Malaysia has introduced new regulations requiring airlines to offer refunds to passengers if their flight is delayed by more than five hours.

These rules will also apply to passengers who choose not to take the delayed flight and buy a different one. The rules, set to come into effect from Monday, are meant to strengthen consumer rights in Malaysia.

Airlines have recently had issues in the country with flight delays and cancellations and national carrier Malaysia Airlines faced disruptions due to engine problems with its Airbus A330 fleet.

Malaysia’s transport minister Anthony Loke also stated that all cancelled flights must be removed from booking systems, including both online and offline travel agent platforms.

“This is to protect users from buying cancelled flight tickets,” he said at a news conference.

The policy is part of the revisions to the Malaysian Aviation Consumer Protection Code 2016, which will be officially published on 2 September.

Earlier this week, a statement from the managing director of Malaysia Aviation Group (MAG), Izham Ismail, said that the conglomerate was reducing flights from now until the end of the year to address ongoing supply chain challenges, worker shortages, and technical issues.

MAG operates Malaysia Airlines (MH, Kuala Lumpur International), Firefly (FY, Penang), and the pilgrimage carrier Amal by Malaysia Airlines.

These flight reductions came after multiple disruptions occurred last week across all three airlines. The disruptions included a Malaysia Airlines A330-300, flying from Melbourne Airport in Australia to Kuala Lumpur, which had to make an emergency landing in Alice Springs in Australia’s Northern Territory due to engine issues.

Another Malaysia Airlines flight, heading to Madinah, was forced to return to Kuala Lumpur International Airport (KLIA) because of similar engine problems.

The Civil Aviation Authority of Malaysia (CAAM) recently conducted an audit of Malaysia Aviation Group (MAG) to investigate the causes of the recent delays, cancellations, and operational issues, Mr Loke said.

“We are taking very seriously concerns about what’s happening at MAG,” he said. “I am in touch with Izham Ismail, and I’ve asked him to make all the necessary follow-ups to ensure that operations are smooth.”

File. A ground staff member looks at the Malaysia Airlines aircraft (AFP via Getty Images)

The Malaysian Aviation Commission will also continue to monitor airline performance to ensure compliance with industry standards, Mr Loke said.

Meanwhile, airlines in Malaysia that fail to comply with the new regulations could be fined up to 200,000 ringgit (approximately $46,000; £35,000), with even steeper penalties for repeat violations.

Similar measures have been implemented in the US, and Australia is considering reforms to enhance consumer rights in aviation. Earlier this year, the US department of transportation introduced rules that require airlines to display the full cost of tickets upfront, including all fees, and provide prompt cash refunds for cancelled or significantly changed flights.

The Australian government also introduced a new “Charter of Rights” this week that will allow airline customers to receive cash refunds for flights that are cancelled or unreasonably delayed. The initiative – part of the newly released Aviation White Paper – aims to revitalise the aviation sector after high costs and the collapse of two airlines, the Australian Broadcasting Corporation reported.

“The bottom line is if people don’t get the service that they are expecting, then customers deserve to get their money back or they deserve to get an equivalent service,” Australian transport minister Catherine King said.