Tony Fernandes: Ministry should revise refund policy to cover all stakeholders, airports

KUALA LUMPUR (Aug 30):  The new refund rule by the Transport Ministry should apply to all stakeholders, including airport operators, and not just airlines. said AirAsia’s parent Capital A Bhd’s chief executive officer Tan Sri Tony Fernandes.

On Wednesday (Aug 28), Transport Minister Anthony Loke announced that airlines are required to offer passengers the option of a full refund for flight delays of five hours or more, effective Sept 2, 2024.

However, Fernandes said that the rule should have some exclusion clauses, as there are possibilities of delays caused by suppliers, traffic control, and information technology (IT) outages, among others.

“I think it is correct if the airline is at fault. But it is always easy to blame the airline. There are many issues, as you have seen, like the recent Crowdstrike problem, where the system falls apart, and weather,” he said at AirAsia’s inaugural flights to Sabah and Sarawak from Sultan Abdul Aziz Shah Airport, formerly known as Subang Airport, today.

Fernandes highlighted that there have been huge supply chain issues, and all airlines are suffering from poor engine reliability.

“However, we do not need to be told that (refund to passengers) because we are already going to do it anyway. So, it is right and fair for passengers to rebook. I would feel the same way, but running an airline is tough, and we rely on suppliers to provide us with engines and spare parts, for example,” he said.

Fernandes said the global IT outage has caused airlines to lose millions in revenue and has created chaos in people’s lives due to system failures.

Airlines need answers and compensation, he said, adding that the low-cost carrier has been in consultation with an American lawyer on the matter.

Last month, major institutions such as airlines, banks, media channels, and hospitals in several countries were reportedly affected by the global IT outage linked to United States cybersecurity firm CrowdStrike Holdings Inc.

Meanwhile, Fernandes expressed optimism about the group’s third-quarter results, given that the ringgit has been strengthening steadily.

“Losses for the second quarter were mainly due to accounting and foreign exchange. However, looking at the better ringgit movement now, we are positive about the next quarter and also 2025, as most of the planes will be back in operation,” he said.

Fernandes also said AirAsia’s return to Subang Airport is expected to significantly enhance connectivity within Malaysia and across the region, and the airline aims to further increase its domestic passenger volume starting with four return flights per day to Sabah and Sarawak. — Bernama