Loke said the move was part of amendments made to the Malaysian Aviation Consumer Protection Code 2016 (MACPC) aimed at offering consumers better protection. It will be gazetted and enforced on Sept 2.
At a press conference here, he said passengers might take up the option of a full refund if they wished to cancel their journey.
Loke said the airlines must offer to refund the affected passengers through the original mode of payment although they could also offer alternatives such as credit shells or flight vouchers.
Consumers would have the right to choose the mode of payment they preferred, he said.
Loke also said mandatory refunds would also be provided for fuel surcharge, taxes, fees and charges such as the departure levy, passenger service charges and carbon fees.
He said this would be applicable to both refundable and non-refundable tickets for a flight the consumer does not board.
He also said any change to the scheduled departure time must be communicated to consumers at least two weeks before the actual departure, unless caused by extraordinary circumstances or unavoidable technical issues.
This provision will take effect in January 2025, he said.
Loke added that all cancelled flights must be removed from all booking platforms, including both online and offline travel agents, to ensure consumers were protected from purchasing tickets for unavailable flights.
“Any denied boarding due to overbooking must be communicated to consumers at the check-in counter or at the departure gate. Denying boarding to consumers who have already boarded the aircraft is prohibited,” he said.
Loke said the time limit for consumers to file complaints had also been extended from one year to two years.
He also said the Malaysian Aviation Commission would continue to monitor airline performance to ensure compliance with the established industry benchmarks for the benefit of consumers.
“Failure to comply with the MACPC may result in a maximum penalty of RM200,000.
“In the case of a second or subsequent non-compliance, a penalty amounting to 10 times the initial penalty may be imposed,” he said.
On Aug 16, Malaysia Aviation Group (MAG) apologised to customers over recent flight delays and cancellations involving both Malaysia Airlines and Firefly.
MAG managing director Izham Ismail said these disruptions were caused by factors such as bad weather, technical issues, manpower challenges, supply chain constraints and delayed aircraft deliveries.