Clear Skies Ahead: Navigating Your New Air Travel Rights - the Malaysian Aviation Consumer Protection (Amendment) Code 2024

INTRODUCTION
 
In the exercise of its function to ensure the protection of aviation consumers, the Malaysian Aviation Commission (“MAVCOM”) issued the Malaysian Aviation Consumer Protection Code1 (“the Code”) that came into effect on 1 July 2016. The Code comprehensively details the rights of air travellers in Malaysia in relation to common passenger grievances such as flight delay and cancellation, denied boarding, and compensation for mishandled baggage, to name a few. The Code applies to all Malaysian airports and to all airlines operating into and out of Malaysia.
 
On 1 September 2024, the Code was amended by the Malaysian Aviation Consumer Protection (Amendment) Code 20242 (“Amendment Code”) to provide even greater protection to aviation consumers. The key changes and enhancements under the Amendment Code are set out below. 
A.   FLIGHT DELAY/DISRUPTIONS 
Previously, when a flight was delayed by five hours or more, the operating airline was obliged to offer passengers free of charge meals, refreshments, limited telephone calls and internet access, as well as hotel accommodation where necessary and transport between the airport and place of accommodation.
 
Following the enhancements to the Code, when a flight is delayed by five hours or more, and if a passenger no longer wishes to continue with the flight, the operating airline is now obliged to offer a full refund in the original mode of payment within 30 days.3 If the passenger still wishes to continue the flight, all the passenger’s rights mentioned in the preceding paragraph are still available.  
 
In the event that a flight is cancelled or delayed by five hours or more due to extraordinary circumstances which could not have been avoided even if all reasonable measures had been taken, the operating airline may offer, in addition to a full refund in the original mode of payment, alternative forms of refunds such as travel vouchers or credit shells.4 ‘Extraordinary circumstances’ will likely include unforeseen weather changes or security risks. 
B.   ROUTE CESSATION/FLIGHT RESCHEDULING 
A new paragraph 12A together with new Item Nos. 6 and 7 of the First Schedule to the Code address the rights a consumer in the event of route cessation and flight rescheduling.
 
In both situations, the operating airline is obliged to offer a full refund in the original mode of payment within 30 days, or to re-route the consumer’s flight under comparable circumstances to the consumer’s final destination at the earliest opportunity or at a later date to the consumer’s convenience at no extra charge. In the event of re-routing to an alternative airport, the operating airline must bear the cost of transferring the consumer from the alternative airport to that for which the reservation was made or to another close-by destination agreed by the consumer. 
C.   COMMUNICATION OF CHANGE IN FLIGHT STATUS 
In the event of a flight rescheduling of three hours or more before or after the scheduled time of departure, the operating airline is now required to notify the passengers about the new departure time when the new timing has been determined or at least 24 hours from the scheduled time of departure.5 Previously, the operating airline was required to inform passengers of a planned flight rescheduling of three hours or more before or after the scheduled departure time, within 12 hours to 48 hours from the scheduled time of departure.6
 
With effect from 1 January 2025, consumers must be notified of any changes to the scheduled time of departure at least two weeks before the actual departure unless the operating airline can prove that the change to departure time was caused by extraordinary circumstances or technical reasons which could not have been avoided even if all reasonable measures had been taken.7
 
Further, all cancelled flights must now be immediately removed from all online booking systems.8 This particular change is to protect consumers from purchasing air tickets that are no longer available. 
D.   DENIAL OF BOARDING 
A consumer can now only be denied boarding by an operating airline in the circumstances set out in paragraph 11 of the Code before the consumer has boarded the aircraft.9 
E.   FULL DISCLOSURE OF AIR FARE 
For the purposes of the advertisement of an air fare, in addition to the existing requirement to disclose information on the base fare (including all charges payable to the airline), taxes and fees imposed by the Government, any fees and charges prescribed by written law and fuel surcharge as part of the all-inclusive price, an amendment to the Code now requires an airline to include any other fees and charges as determined by MAVCOM to be imposed on consumers by providers of air services in the all-inclusive price.10 The enhanced Code also states that such advertisements must not be false, misleading or deceptive.11
 
The above enhancements will serve to prevent airlines from solely advertising the base air fare, which is often considerably lower than the all-inclusive price.
 
Similarly, information on any other fees and charges as determined by MAVCOM to be imposed on consumers by providers of air services must be included in the final price of an air fare to be disclosed by an airline before the ticket is purchased by a consumer.12
 
MAVCOM has recently published a “Guidance on the Advertisement of Air Fare” to provide assistance to airlines regarding the implementation of this new rule.13 
F.   INCREASE IN COMPENSATION 
The maximum liability of an airline for damage occasioned by delay in a flight under the amended paragraph 12(3) of the Code has been increased from 4,694 to 5,346 Special Drawing Rights per passenger and for baggage delay, loss or damage under the amended paragraph 13(5) of the Code has been increased from 1,131 to 1,288 Special Drawing Rights per passenger.14 
G.   REFUND TO PASSENGERS 
Following the enhancements to the Code, in the event that a passenger does not board a flight and is not entitled to a full refund of his or her ticket for that flight, it is still mandatory for the operating airline to refund the fuel surcharges, taxes, and other fees and charges imposed by the Government or by MAVCOM or under any written law15, which would include charges such as the passenger service charge, departure levy and carbon fee.   
H.   COMPLAINT SUBMISSION DEADLINE 
The Amendment Code extends the deadline for any passenger to submit a complaint to MAVCOM pertaining to any aviation service has been extended from one year from the date that the cause of the complaint accrued to two years from the date that the cause of the complaint accrued.16

COMMENTS

In light of the key changes discussed above, the enhanced Code affords greater protection to consumers of aviation services. With these new travel rights, it is expected that air passengers in Malaysia will have better flight experiences and smoother dealings with their operating airlines while travelling.     
 
It should be noted that although MAVCOM will very soon be dissolved and all its powers transferred to the nation’s civil aviation regulator, the Civil Aviation Authority of Malaysia (“CAAM”), the enhanced Code will remain in force and all references to MAVCOM therein shall be construed as a reference to CAAM.17
 
Article by Shannon Rajan (Partner), Eric Gabriel Gomez (Senior Associate) and Foong Wai Leong (Associate) of the Aviation Practice of Skrine.
 
 

1 P.U.(B) 305/2016.
2 P.U.(B) 345/2024.
3 Item No. 4 of the First Schedule read with new paragraph 15B of the Code.
4 New paragraph 12(5A) read with existing paragraph 12(8) of the Code.
5New paragraph 8(6)(b) of the Code.
6 Previous paragraph 8(4)(b) of the Code.
7 New paragraph 8A of the  Code read with paragraph 1(3) of the Amendment Code.
8 New paragraphs 8(7) and 8(8) of the Code.
9 Amended paragraph 11(3) of the Code.
10 New paragraph 3(1)(e) of the Code.
11 New paragraph 3(2) of the Code.
12 New paragraph 3(3)(f) of the Code.
13 Accessible via https://www.mavcom.my/en/resources/legislations/.
14 Refer to definition of ‘Special Drawing Rights’ and paragraph 16 of the Code for further explanation of Special Drawing Rights and conversion of such rights into Ringgit Malaysia.
15 New paragraph 15A(2) of the Code.
16 Amended paragraph 18(a) of the Code.
17 Section 14, Malaysian Aviation Commission (Dissolution) Act 2024.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.