SEVERAL airlines have received show-cause letters for continuing to impose hidden charges in airfare prices, the Malaysian Aviation Commission (Mavcom) told The Malaysian Insight. 

The commission said appropriate action would be taken against these airlines once it has evaluated written submissions provided by these carriers.

Mavcom did not reveal the identity of the carriers.

Effective June I, airlines are prohibited under a new regulation to impose hidden charges such as credit card and administrative fees on passengers

“The commission has issued show-cause letters to airlines which have not complied with the MACPC (Malaysian Aviation Consumer Protection Code 2016) and shall evaluate any written representations submitted by the airlines in response to the show cause letters issued by the commission.

“The commission will then determine whether the airlines have contravened the said provision of the MACPC,” Mavcom told The Malaysian Insight.

Under the new regulation, with the enhancement of the MACPC 2016, airlines are required to disclose the final price of airfare both at the point of advertisement and prior to consumers purchasing flight tickets.

The final price must include the base fare and all charges to be paid to the airline, government-imposed taxes and fees, fees and charges prescribed under any written law, as well as fuel surcharge.

This, according to Mavcom, will ensure that consumers are aware of the final price of the ticket before purchasing.

On what penalties can be imposed on airlines found breaching the new ruling, Mavcom said a decision would be made upon scrutinising the submissions.

“The decision by the commission will depend on the findings of the evaluation of the alleged contravention.”

While Mavcom did not reveal the airlines that had been issued the show cause letters, low cost carrier AirAsia is believed to be one of them.

AirAsia had previously said it would remove the processing fee for customers who pay either through online banking or credit card from October onwards.

AirAsia’s processing fee starts at RM4 for direct debit and can go up to RM16 with UnionPay.

There is no processing fee involved for customers opting to make payments using AirAsia’s e-wallet application BigPay.

The Malaysian Insight is still waiting for the budget airline’s response. – August 13, 2019.