Give soft loans to airlines to help them recover, Matta tells govt

KUALA LUMPUR: The Malaysian Association of Tour and Travel Agents (Matta) has urged the government to consider providing financial support to the local aviation industry and airlines to help them survive and recover from the impact of the Covid-19 outbreak.

Matta president Datuk Tan Kok Liang said this includes providing soft loans to airlines, including Malaysia Airlines Bhd and AirAsia Group Bhd.

In a statement yesterday, the association also expressed concern about the Malaysian Aviation Commission’s (Mavcom) decision to give leeway to airlines in providing refunds to customers due to challenges faced by them amid the Covid-19 crisis.

It noted that airlines operating in Malaysia indicated that 13.6 million seats were cancelled, meaning hundreds of millions of consumers’ dollars are stuck with them, including more than the 100 foreign carriers.

“Mavcom’s function is also to provide a mechanism for (the) protection of consumers. If so, the commission ought to ensure that consumers (which include travel agents who act on behalf of consumers) get their due refunds without delay or offer equitable proposals acceptable to ticket holders,” Tan said.

“The least Mavcom can do is to accept this extraordinary challenge and provide a timeline plus a mechanism for refunds and provide options and solutions both to airlines and consumers,” he added.

Matta also called on Mavcom to consider the impact on consumers if any of the airlines were to go into liquidation.

“What good will be the value of the vouchers and points then? What if foreign airlines choose to cease operations in Malaysia? Has Mavcom taken all of these factors into account?” Tan asked.

Additionally, Tan said the International Air Transport Association should now insist that airlines provide financial security to protect travel agents and passengers should the airlines close.

Source: TheEdgeMarkets