We need our money back, say AirAsia passengers struggling with pandemic hardships
They urge the airline to empathise with their struggles and refund the money spent on flights that never took off, while others say they are ready to boycott AirAsia over the matter.
Ground crew conduct last-minute checks as baggage is loaded into the cargo hold of an AirAsia plane before take-off at klia2 in Sepang.
Two years ago, a number of passengers who had booked tickets with low-cost airline AirAsia had their flights cancelled due to the Covid-19 outbreak which saw domestic and international borders closed in an attempt to halt the virus’ spread.
Now, mired in financial hardships due to the economic slump caused by the global pandemic, they are pleading for their refunds, asking AirAsia’s management to understand the difficulty of their situation.
Speaking to MalaysiaNow, they said it seemed as though the airline did not care about their misfortunes or understand the plight of those who truly needed their money back to survive the lingering effects of the pandemic.
Low Pui San, from Kuala Lumpur, spent more than RM4,000 in November 2019 on tickets to South Korea for a family vacation that never materialised.
The flight, scheduled for Nov 1, 2020, was cancelled due to the movement restrictions and border closures that followed the onset of Covid-19.
“For me, RM4,000 is a lot of money,” Low, 37, told MalaysiaNow.
“I want to get my money back to keep in case of emergencies.”
And she fears that such situations might occur sooner rather than later as her household income has been severely affected. Even now, she has been dipping into her savings in order to purchase basic necessities.
Nicholas Chan, 32, paid RM2,000 for two tickets to Tokyo. Today, he is still waiting to get his money back.
“This issue has dragged on for two years already,” he said. “Personally, I am upset. I don’t think I will choose this airline again even if it gives attractive offers.
“I hope AirAsia X will be more responsible,” he added. “If it had refunded its passengers immediately, it wouldn’t have gotten this negative image.”
Businessman Muhammad Zulfadli Mohd Noor spent a considerable amount of time and energy trying to communicate with AVA – AirAsia’s AI-based chatbot.
But his efforts ended in disappointment and he has yet to receive a refund for the RM3,036 he spent on tickets to South Korea.
“After my flight scheduled for June 29, 2020 was cancelled, I kept trying to contact AVA but I was told that my case had been resolved,” the 33-year-old said.
Zulfadli also lodged a complaint with the Malaysian Aviation Commission (Mavcom) but was told to wait for the High Court decision on the company’s debt restructuring application.
Eunice Lee from Melaka meanwhile bought tickets to Taipei, Taiwan, but was told in an email that the company could not refund her, provide credit or reschedule her flight as long as the court did not make a decision.
The email also referred to the restructuring application made by AirAsia X, adding that passengers would be treated as creditors throughout the court process.
“It doesn’t make sense,” she said. “We bought tickets from airasia.com not to become their creditors. We just wanted to use their flight services.
“The management has been highly irresponsible. We bought tickets, our flights were cancelled, and then they brought up the restructuring and refused to return the money which we earned by our own hard work.”
Low meanwhile said that although AirAsia could legally defer passenger refunds, this would be an unethical move.
“Why should we pay for services that cannot be used?” Low, who had flown with AirAsia many times over the past 10 years, asked.
“It doesn’t make any sense. AirAsia should prioritise the interests of its passengers because we are the company’s lifeblood.”
MalaysiaNow has contacted AirAsia for a response.
Boycott
Meanwhile, other disgruntled passengers, fed up with waiting for their refunds, said they were ready to boycott the low-cost airline.
Tommy Nagao, an English tuition teacher from Japan, said he had tried for two years to recover the 76,880 yen (RM2,623) which he had spent on flight tickets to Bangkok.
After trying every available approach, he said, he had given up.
He said many passengers felt cheated by the airline and had resolved not to use its services anymore.
“It’s unacceptable for a company to take its customers’ money and then provide no explanation or reason,” he said.
“I understand that many, including companies, have been affected by the Covid-19 pandemic, but this sort of thing is unacceptable and I don’t understand how it has been able to avoid action against it.”
Nagao said he had also applied for a refund from Lion Air Thailand.
“I got that refund,” he said. “But I’m still waiting for AirAsia to give me back my money.”
Karen Drummond, from Perth, Australia, said she had received an email from AirAsia informing her that the refund process would be resolved within 12 to 16 weeks.
Drummond, 49, said AirAsia also encouraged her to accept payment in the form of account credit as this would be quicker. Nevertheless, she said, she insisted on receiving her money back.
Today, she has yet to receive a single sen despite the constant emails and messages she sends through the airline’s social media.
“I guarantee that I will never use this airline again, and I will advise my family and friends to do the same,” she said.
“AirAsia wants its passengers to abide by its terms and conditions but it is the one breaking them.”
Drummond said she had also lodged a complaint with Mavcom, to which she had received a response.
“I will provide some additional information to help Mavcom process my complaint,” she said, adding nonetheless that AirAsia’s refusal to refund passengers’ money was an unethical move.
Claire Harris, from the UK, said she had spent US$111.71 (RM486.89) on a ticket from Cebu to Boracay in the Philippines. The payment was made on Sept 8, 2019 for a flight scheduled on May 15, 2020.
Acknowledging that this might not be a large sum, she nonetheless said that it was a matter of principles.
“Of course, the refund process would take a long time because of the number of applications, but two years is unacceptable,” she said.
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Malaysia Now:
AirAsia top duo paid RM4.8 million each in 2020
Meanwhile many passengers have been demanding their money back for flight cancellations.
Two years ago, a number of passengers who had booked tickets with low-cost airline AirAsia had their flights cancelled due to the Covid-19 outbreak which saw domestic and international borders closed in an attempt to halt the virus’ spread.
Now, mired in financial hardships due to the economic slump caused by the global pandemic, they are pleading for their refunds, asking AirAsia’s management to understand the difficulty of their situation.
Speaking to MalaysiaNow, they said it seemed as though the airline did not care about their misfortunes or understand the plight of those who truly needed their money back to survive the lingering effects of the pandemic.
Low Pui San, from Kuala Lumpur, spent more than RM4,000 in November 2019 on tickets to South Korea for a family vacation that never materialised.
The flight, scheduled for Nov 1, 2020, was cancelled due to the movement restrictions and border closures that followed the onset of Covid-19.
“For me, RM4,000 is a lot of money,” Low, 37, told MalaysiaNow.
“I want to get my money back to keep in case of emergencies.”
And she fears that such situations might occur sooner rather than later as her household income has been severely affected. Even now, she has been dipping into her savings in order to purchase basic necessities.
Nicholas Chan, 32, paid RM2,000 for two tickets to Tokyo. Today, he is still waiting to get his money back.
“This issue has dragged on for two years already,” he said. “Personally, I am upset. I don’t think I will choose this airline again even if it gives attractive offers.
“I hope AirAsia X will be more responsible,” he added. “If it had refunded its passengers immediately, it wouldn’t have gotten this negative image.”
Businessman Muhammad Zulfadli Mohd Noor spent a considerable amount of time and energy trying to communicate with AVA – AirAsia’s AI-based chatbot.
But his efforts ended in disappointment and he has yet to receive a refund for the RM3,036 he spent on tickets to South Korea.
“After my flight scheduled for June 29, 2020 was cancelled, I kept trying to contact AVA but I was told that my case had been resolved,” the 33-year-old said.
Zulfadli also lodged a complaint with the Malaysian Aviation Commission (Mavcom) but was told to wait for the High Court decision on the company’s debt restructuring application.
Eunice Lee from Melaka meanwhile bought tickets to Taipei, Taiwan, but was told in an email that the company could not refund her, provide credit or reschedule her flight as long as the court did not make a decision.
The email also referred to the restructuring application made by AirAsia X, adding that passengers would be treated as creditors throughout the court process.
“It doesn’t make sense,” she said. “We bought tickets from airasia.com not to become their creditors. We just wanted to use their flight services.
“The management has been highly irresponsible. We bought tickets, our flights were cancelled, and then they brought up the restructuring and refused to return the money which we earned by our own hard work.”
Low meanwhile said that although AirAsia could legally defer passenger refunds, this would be an unethical move.
“Why should we pay for services that cannot be used?” Low, who had flown with AirAsia many times over the past 10 years, asked.
“It doesn’t make any sense. AirAsia should prioritise the interests of its passengers because we are the company’s lifeblood.”
MalaysiaNow has contacted AirAsia for a response.
Boycott
Meanwhile, other disgruntled passengers, fed up with waiting for their refunds, said they were ready to boycott the low-cost airline.
Tommy Nagao, an English tuition teacher from Japan, said he had tried for two years to recover the 76,880 yen (RM2,623) which he had spent on flight tickets to Bangkok.
After trying every available approach, he said, he had given up.
He said many passengers felt cheated by the airline and had resolved not to use its services anymore.
“It’s unacceptable for a company to take its customers’ money and then provide no explanation or reason,” he said.
“I understand that many, including companies, have been affected by the Covid-19 pandemic, but this sort of thing is unacceptable and I don’t understand how it has been able to avoid action against it.”
Nagao said he had also applied for a refund from Lion Air Thailand.
“I got that refund,” he said. “But I’m still waiting for AirAsia to give me back my money.”
Karen Drummond, from Perth, Australia, said she had received an email from AirAsia informing her that the refund process would be resolved within 12 to 16 weeks.
Drummond, 49, said AirAsia also encouraged her to accept payment in the form of account credit as this would be quicker. Nevertheless, she said, she insisted on receiving her money back.
Today, she has yet to receive a single sen despite the constant emails and messages she sends through the airline’s social media.
“I guarantee that I will never use this airline again, and I will advise my family and friends to do the same,” she said.
“AirAsia wants its passengers to abide by its terms and conditions but it is the one breaking them.”
Drummond said she had also lodged a complaint with Mavcom, to which she had received a response.
“I will provide some additional information to help Mavcom process my complaint,” she said, adding nonetheless that AirAsia’s refusal to refund passengers’ money was an unethical move.
Claire Harris, from the UK, said she had spent US$111.71 (RM486.89) on a ticket from Cebu to Boracay in the Philippines. The payment was made on Sept 8, 2019 for a flight scheduled on May 15, 2020.
Acknowledging that this might not be a large sum, she nonetheless said that it was a matter of principles.
“Of course, the refund process would take a long time because of the number of applications, but two years is unacceptable,” she said.
*********
Malaysia Now:
AirAsia top duo paid RM4.8 million each in 2020
Meanwhile many passengers have been demanding their money back for flight cancellations.
AirAsia founders Tony Fernandes and Kamarudin Meranun and senior independent non-executive chairman Rafidah Aziz.
The annual reports for the financial year ended Dec 31, 2020 (FY20) for AirAsia Group Bhd, now known as Capital A Bhd, and AirAsia X (AAX), show that Tony Fernandes and Kamaruddin Meranun received an annual salary of RM4.8 million each, while board members were given fees in the hundreds of thousands of ringgit, even as the airline dealt with the impact of Covid-19 following the worldwide freeze on air travel.
Meanwhile, according to AAX’s annual report for the financial year ended June 30, 2021, former minister Rafidah Aziz, who is a senior independent non-executive chairman, was paid RM401,500.
Other board members received annual fees ranging from RM150,000 to RM280,000 as well as meeting and travel allowances amounting to tens of thousands of ringgit.
The reports came as the carrier posted a series of losses due to the Covid-19 pandemic.
In September 2021, AAX posted a record quarterly loss of RM24.6 billion for the April-June period, eight times more than the previous year. It was the airline’s ninth successive loss.
Last year, the group posted a net loss RM887 million for the third quarter ended Sept 30, 2021, up 4% from RM851.78 million in the corresponding quarter in 2020.
AAX, meanwhile, faces the issue of refunds demanded by passengers whose flights were cancelled over the past two years since the onset of the Covid-19 crisis.
MalaysiaNow understands that many have yet to receive their money back.
In April last year, Fernandes assured some 450,000 customers waiting for refunds would get their money back, adding that AAX had been facing financial problems.
“AirAsia X is in deep, deep financial difficulty because it just hasn’t been able to fly anywhere. Plus it has had to deal with very unfair competition over the many years,” he said.
On Nov 12 last year, AirAsia said that its RM33.65 billion debt settlement scheme for AAX had been approved by 99% of its creditors through a vote at a meeting held that day.
“A lot has also been written about the classification of passengers as creditors. In a financial statement, besides being a shareholder, there are only two categories. A party is either a debtor if they are owing money to the company or a creditor if the company owes them money. It is clear that the company owes the passengers who have outstanding amounts owed to them, and hence the classification as creditors.
“We assure all passengers affected by the restructuring that it is the firm intention of AAX to put in place travelling privileges in the form of travel credits, which can be utilised for future purchases of flight tickets once international borders reopen on top of the 0.5% they will receive and other cash based entitlements based on annual revenue performance over three years as explained in the explanatory statement issued to all creditors recently.
“Please note that these entitlements and the travel credits can only take place if AAX is successfully restructured pursuant to the terms of the scheme. If the terms of the scheme are not complied with and the scheme fails, AAX will go into liquidation and the passengers will not receive anything in return. It is not the intention for AAX to place the passengers in this situation,” it said.
On March 16, AAX in a separate statement said the company had lodged a sanction order for its debt restructuring with the Registrar of Companies with the formalities of the restructuring now completed.
It said the lodgement of the sanction order meant that the financial effects could be recognised in the financial statements of the company and that, as a result, AAX would be able to reverse RM33 billion in liabilities and provisions for liabilities which have been waived under the scheme.
The annual reports for the financial year ended Dec 31, 2020 (FY20) for AirAsia Group Bhd, now known as Capital A Bhd, and AirAsia X (AAX), show that Tony Fernandes and Kamaruddin Meranun received an annual salary of RM4.8 million each, while board members were given fees in the hundreds of thousands of ringgit, even as the airline dealt with the impact of Covid-19 following the worldwide freeze on air travel.
Meanwhile, according to AAX’s annual report for the financial year ended June 30, 2021, former minister Rafidah Aziz, who is a senior independent non-executive chairman, was paid RM401,500.
Other board members received annual fees ranging from RM150,000 to RM280,000 as well as meeting and travel allowances amounting to tens of thousands of ringgit.
The reports came as the carrier posted a series of losses due to the Covid-19 pandemic.
In September 2021, AAX posted a record quarterly loss of RM24.6 billion for the April-June period, eight times more than the previous year. It was the airline’s ninth successive loss.
Last year, the group posted a net loss RM887 million for the third quarter ended Sept 30, 2021, up 4% from RM851.78 million in the corresponding quarter in 2020.
AAX, meanwhile, faces the issue of refunds demanded by passengers whose flights were cancelled over the past two years since the onset of the Covid-19 crisis.
MalaysiaNow understands that many have yet to receive their money back.
In April last year, Fernandes assured some 450,000 customers waiting for refunds would get their money back, adding that AAX had been facing financial problems.
“AirAsia X is in deep, deep financial difficulty because it just hasn’t been able to fly anywhere. Plus it has had to deal with very unfair competition over the many years,” he said.
On Nov 12 last year, AirAsia said that its RM33.65 billion debt settlement scheme for AAX had been approved by 99% of its creditors through a vote at a meeting held that day.
“A lot has also been written about the classification of passengers as creditors. In a financial statement, besides being a shareholder, there are only two categories. A party is either a debtor if they are owing money to the company or a creditor if the company owes them money. It is clear that the company owes the passengers who have outstanding amounts owed to them, and hence the classification as creditors.
“We assure all passengers affected by the restructuring that it is the firm intention of AAX to put in place travelling privileges in the form of travel credits, which can be utilised for future purchases of flight tickets once international borders reopen on top of the 0.5% they will receive and other cash based entitlements based on annual revenue performance over three years as explained in the explanatory statement issued to all creditors recently.
“Please note that these entitlements and the travel credits can only take place if AAX is successfully restructured pursuant to the terms of the scheme. If the terms of the scheme are not complied with and the scheme fails, AAX will go into liquidation and the passengers will not receive anything in return. It is not the intention for AAX to place the passengers in this situation,” it said.
On March 16, AAX in a separate statement said the company had lodged a sanction order for its debt restructuring with the Registrar of Companies with the formalities of the restructuring now completed.
It said the lodgement of the sanction order meant that the financial effects could be recognised in the financial statements of the company and that, as a result, AAX would be able to reverse RM33 billion in liabilities and provisions for liabilities which have been waived under the scheme.
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