Thump Up To MAVCOM To Protect Travelers On Refund of PSC

In December 2011 AirAsia was campaigning against the increased of PSC by MAHB. What a noble act!

It is an open secret that airlines have forfeited the Passenger Service Charge (PSC) or Airport Tax of no-show passengers and treated the unclaimed Passenger Service Charge or Airport Tax as part its revenue. This is definitely no right under law.

For no-show passengers, airlines are only entitled to forfeit the actual fare paid by the passengers and it is duty bound to refund PSC collected to the no-show passenger. At all material times the PSC of no-show passenger belong to the passenger. Airlines have no legal right to the PSC of no-show passengers.

Yours truly is glad to learn that MAVCOM had announced that it will seek to amend the provisions of  Malaysian Aviation Consumer Protection Code 2016 (MACPC) in its bid to protect travelers.  Please see below for the press release of MAVCOM. The traveling public should applaud MAVCOM for this initiative.

This is the move into the right direction. MAVCOM should act as soon as possible as the traveling public need the protection urgently.

On 23 November 2011 yours truly had tabled a question to the Minister of Transport and he had confirmed that from 1 May 2002 to August 2011 AIrAsia Bhd  had collected RM6,432,697.00 from no-show passengers and from November 2007 until September 2011 AirAsia X had collected RM498,000.00.  The Minister had also said that the PSC for no-show passengers should be refunded to the passenger. The unclaimed PSC for the no-show passengers should be handed over to MAHB, who will handover to the Registrar of Unclaimed Money Act.  For the full reply please read HERE.

It has been confirmed by Mr Shin Kok Leong,  the AirAsia Group Financial Accountant,  in the hearing of the defamation suit filed by AirAsia Bhd against yours truly that after 6 months if the no-show passengers did not claim it, AirAsia shall treat the said PSC as its revenue.  The said Defamation Suit was dismissed with cost RM50,000.00 by the High Court in HERE & HERE.

MAVCOM

It has been confirmed by MAVCOM that some airlines have been found to have levied administrative charges for claiming back PSC ranging from RM15 to RM300!  What a prohibitive figure. It is about time that MAVCOM should act against this daylight robbery.

(The Star) Mavcom seeks further protection for travelers

PETALING JAYA: Airlines will be required to remit refunds due to air passengers within 30 days from the date of the request by travelers, and can no longer charge fees for rendering special assistance to passengers.

Travelers are also entitled to a full refund of the passenger service charge (PSC) if they do not proceed with their journey, and airlines will no longer be allowed to impose any fee to facilitate the refunds.

Not all airlines currently refund the unused PSC portion to passengers, some of whom do not know that they have the right to that monies. There are airlines that pocket the fees that amount to RM50mil-RM60mil a year.

The industry regulator, the Malaysian Aviation Commission (Mavcom), is seeking to amend and add some new provisions to the Malaysian Aviation Consumer Protection Code 2016 (MACPC) in its bid to protect travelers.

It has posted a consultation paper on the matter on its website and hopes for feedback from the public before March 22.

The commission said some airlines have been charging consumers between RM15 and RM300 for processing PSC refunds, which could be more than the prescribed PSC rate.

Mavcom said airlines would be prohibited from charging any fee for rendering special assistance to any passenger with a disability or requires special assistance as long as they can provide the necessary documents.

It is also proposing for more clarity in the way the airlines charge their fees. Mavcom said airlines would be required to state clearly the fees and charges they impose on travellers, as currently “consumers are obliged to pay certain unavoidable and mandatory fees or charges” that they are not aware of.

The proposal is for airlines to display the airfares clearly, state the optional/ancillary services that the passenger opts for, and any fee charged or taxes imposed under any written law.

Fees such as administrative fees, processing fees and fuel surcharges have to be factored into the airfare.

“Airlines will be required to bring the top-five terms and conditions to the attention of passengers when they book their tickets.

“This includes the change or cancellation fee, no-show fee, whether the ticket has a refund value, baggage allowance and requirement for passengers to ensure they have the necessary travel documents,” the commission said.

The amendment includes flight cessations and cancellations.

The above report was taken from HERE.

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5 thoughts on “Thump Up To MAVCOM To Protect Travelers On Refund of PSC

  1. No Ball Liow

    It is a very good idea that unclaimed PSC of no show passengers is treated as revenue of AirAsia. PSC of no show passenger belongs to the passenger not AirAsia.

    How could some airline charged between RM15 to RM300 as administrative charges for processing claim for PSC. MAVCOM must act now.

    MAVCOM must also explain what is it doing against what AAA and AAX have collected and treated as its revenue. The sum of RM6.5 million in the case of AA and about RM500K for AAX should be send to Unclaimed. Money Department. These sum cannot be treated as revenue. PSC was never part of the fare of AA. PSC is meant to pay to MAHB.

    The Minister of Finance and No Ball Liow should act on this unclaimed matter.

    Reply
  2. steven

    Congratulation MAVCOM. It is long overdue to regulate the unscrupulous tactics of the airline like what Shin Kok Leong had said: unclaimed PSC of no show passengers will be treated as revenue (if not claimed fore 6 months. When the money does not belong to AA, it does not matter after a lapse of whether 6 months or 1 or two years. The ownership of the PSC cannot change hands as what AA had done. What is the authority doing about this? Minister of Transport is useless. He is a good friend of Tony.

    Reply
  3. Low Caste Con Air

    How could unclaimed PSC is treated as revenue by AirAsia??? This must must be stopped by the authorities. This fella is playing around with our system. The authorities must act in this matter. What is the Registrar of Unclaimed Money doing? What are the Minister of Finance and Minister of Transport doing about this to protect the public? Unclaimed PSC remains unclaimed. It is not revenue for AirAsia. The no-show passenger had no business relationship with AA over the PSC. The passengers have relationship with MAHB only.

    Reply
  4. Joe

    Since MAVCOM has the evidence of some airline charging RM15 to RM300 as administrative fees, actions should be taken as soon as possible. This is very serious. The interest of travellers should be protected. The time has come for actions. It is an open secret that one airline has been known to have done this openly. AirAsia officer already said in court that unclaimed money after 6 months will be treated as revenue for AirAsia.

    Reply

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