MYAirline passengers can use chargebacks to recover funds, minister tells Parliament

KUALA LUMPUR, Nov 2 — MYAirline passengers who paid for tickets electronically can have their financial institutions initiate chargebacks and recover the sum paid to the suspended low-cost carrier, Transport Minister Anthony Loke said in Parliament today.

The minister said this was based on the confirmation provided by Bank Negara Malaysia (BNM) about the matter.

“BNM has confirmed that for passengers who have purchased tickets via credit card, debit card and direct debit (FPX) can claim refund through the chargeback process if their travel date have passed by contacting MYAirline or the bank themselves,” Loke told the Parliament during his winding up speech on the Supply Bill 2024 debate today.

A chargeback is when consumers apply for their bank or financial institution to recover funds paid to merchants for disputed, erroneous, or fraudulent transactions.

MYAirline suspended its operations without warning on October 12, citing financial distress and leaving thousands of passengers stranded.

On October 16, the budget carrier said refunds to passengers could reach up to an estimated RM22 million, but would only be paid if it secures new investors.

On the same day, Malaysia Airports Holdings Bhd (MAHB) said 5,000 passengers have been affected, along with a total of 39 flights serving local destinations, as well as one international route to Don Mueang Airport in Bangkok, Thailand since yesterday.

Yesterday, the Malaysian Aviation Commission (Mavcom) announced that it has suspended the Air Service Licence (ASL) of MYAirline.

Mavcom also said MYAirline remained liable to refund its affected passengers as per the Malaysian Aviation Consumer Protection Code 2016 (MACPC), even though its ASL has been suspended.

It noted that a total of over 117,000 estimated passengers are affected by MYAirline’s suspension of operations, with a total value of over RM22 million in forward sales for scheduled flights from October 12, 2023 until March 31, 2024.

The commission said 58 per cent (RM12.8 million) of the forward sales are from travel agencies, followed by 41.8 per cent (RM9.2 million) from payments made by credit or debit cards.