Malaysia says airlines must fully refund passengers for delays of 5 hours or more

The country’s flagship carrier has been suffering a series of disruptions due to ongoing engine-related problems on its Airbus SE A330 aircraft. Malaysia Airlines said earlier this month that it needs to reduce its flight network between now and December.

Refunds will need to be offered via the original means of payment, Malaysia’s transport ministry said.

Earlier this year, the US Department of Transportation ordered airlines to provide automatic refunds for flights that are axed or significantly delayed. Protections for travellers in the US were strengthened after spiralling complaints about airlines refusing or delaying refunds.

Australia, meanwhile, has started consulting on wholesale reforms to boost competition and consumer rights in aviation, including making it easier for passengers to be refunded.

Qantas Chief Executive Officer Vanessa Hudson, talking to investors after the release of the carrier’s full-year financial results on Thursday, said that forcing airlines to refund fares for cancellations and delays just adds to ticket costs, because airlines will look to recoup the added expenses elsewhere.

Malaysia said airlines found to be contravening the new regulations may be fined a maximum of 200,000 ringgit (US$46,000) and the amount could be more for subsequent breaches.