Airline operators in Malaysia indicate 13.6 mil seats cancellation

By Ayisy Yusof

April 8, 2020 @ 8:16pm

KUALA LUMPUR: There has been a cancellation of about 13.6 million seats, or 12.3 per cent of annual scheduled operations by airlines operating in Malaysia, according to the Malaysian Aviation Commission (MAVCOM).

The commission said the Malaysian carriers have correspondingly received an inordinately high volume of passenger refund requests beyond their current resources.

MAVCOM said the situation will likely take longer than usual for airlines to respond to consumers.

“The financial challenges currently faced by the airlines have also coincided with them needing to adopt varying forms of refunds, including cash, vouchers, credit shell or alternatively deferment of travel,” it said in a statement today.

The commission said it will continue its efforts for air travel consumer protection in Malaysia.

“We nevertheless also hope all stakeholders work together in these unprecedented circumstances for the longer-term survival and benefit of the aviation industry in Malaysia.”

Under the Malaysian Aviation Consumer Protection Code (MACPC) in 2016, MAVCOM said airlines are required to resolve complaints and remit refunds to consumers within 30 days of receipt of those complaints.

Since the introduction in 2016, MAVCOM said MACPC served to protect consumer interests in air travel.

“However, the current prevailing circumstances and in the spirit of facilitating the industry, we temporarily provide some leeway in terms of the time they need to respond and complete refund requests,” it added.

MAVCOM said it also require airlines to resolve complaints and refund requests as timely as possible on best efforts basis to ensure consumer interests remain protected.

Under the MACPC, MAVCOM said consumers may receive compensation for flight disruptions caused by airlines.

“However, this regulation does not apply where the flight disruptions is an ‘extraordinary circumstance’, outside of airline's control.”

MAVCOM said containment measures of the Covid-19 involve national quarantines and travel bans, not only in Malaysia, but countries worldwide.

“These situations are deemed as extraordinary circumstances in which airlines will have to abide due to security and safety measures.”

MAVCOM said Covid-19 has contributed towards the aviation industry globally undergoing one of the most challenging periods of its history.

“Passenger travel has plummeted, and airline revenues have therefore significantly decreased, therefore resulting in the airlines facing severe challenges in managing their resources and cashflows.”

MAVCOM had recently revised downward its forecasts of passenger traffic in Malaysia to decrease between 36.2 per cent and 38.1 per cent year-on-year in 2020 arising from Covid-19.

Meanwhile, the International Air Transport Association (IATA) said about 25 million jobs would be at risk of disappearing with plummeting demand for air travel, if In a scenario of severe travel restrictions lasting for three months.

In its new analysis published yesterday, IATA said the livelihoods of some 65.5 million people globally were dependent on the aviation industry, including sectors such as travel and tourism. Of the total, IATA said 2.7 million people were in airlines jobs.

IATA, which represents about 290 airlines comprising 82 per cent of global air traffic, said 11.2 million jobs in Asia-Pacific would also be at stake amid the Covid-19 crisis.

IATA’s director general and chief executive officer Alexandre de Juniac said there are no words to adequately describe the devastating impact of Covid-19 on the airline industry.

“The economic pain will be shared by 25 million people who work in jobs dependent upon airlines. Airlines must be viable businesses so that they can lead the recovery when the pandemic is contained. A lifeline to the airlines now is critical,” he said in a statement yesterday.

IATA had also urged governments to provide immediate financial aid to help airlines to remain viable businesses able to lead the recovery when the pandemic is contained.

This includes direct financial support, loans, loan guarantees and support for the corporate bond market and tax relief.

de Juniac said the industry will also need careful planning and coordination to ensure that airlines would be ready when the pandemic is contained.

“We have never shuttered the industry on this scale before. Consequently, we have no experience in starting it up. It will be complicated.

“At the practical level, we will need contingencies for licenses and certifications that have expired. We will have to adapt operations and processes to avoid reinfections via imported cases,” he said.

He said the airlines sector must find a predictable and efficient approach to managing travel restrictions which need to be lifted before we can get back to work.

“These are just some of the major tasks that are ahead of us. And to be successful, industry and government must be aligned and working together,” added de Juniac.