The Malaysian Aviation Commission (MAVCOM) recently announced that it had imposed RM2 million fines on AirAsia Berhad and its long-haul sister airline AirAsia X Berhad. MAVCOM further announced that it had imposed an RM856,875 penalty on Malaysia Airports (Sepang) Sdn Bhd, which is the operator of Kuala Lumpur International Airport. The fines come at a time of considerable uncertainty for MAVCOM and the Malaysian aviation industry.
Malaysia's International Aviation Safety Assessment air safety rating was recently downgraded from Category 1 to Category 2 by the US Federal Aviation Administration (FAA). As a result, all Malaysian airlines are now restricted from adding new flights to the United States, although existing flights will be allowed to continue under heightened FAA surveillance and checks. The downgrade also means that reciprocal code-sharing arrangements between US and Malaysian airlines are no longer permitted.
The Malaysian Aviation Commission Protection Code 2016 was recently amended. The amendments, which considered feedback from consumers and consultations with industry players, aim to promote greater transparency and fairness in dealings between airlines and passengers, which should allow consumers to enjoy monetary savings and make more informed decisions.
The Malaysian Aviation Commission recently imposed RM200,000 fines on two airline operators for charging credit card, debit card and online banking processing fees separately from their base fares in breach of the Aviation Consumer Protection Code. The commission also issued a RM1.179 million fine to airport operator Malaysian Airports (Sepang) Sdn Bhd for failing to meet several service level requirements regarding airport users under the Implementation of the Airports Quality of Service Framework Directive.
The Kuala Lumpur High Court recently granted summary judgment for a combined sum exceeding RM40 million for outstanding passenger service charges. In coming to this decision, the court dealt with the jurisdiction of the nation's aviation regulator to resolve disputes between aviation service providers prescribed under the Malaysian Aviation Commission Act 2015.