Payment in Cash, Refunds as Vouchers? Customers Boil Over AirAsia's Abuse of Power

Airline Tickets Canceled Due to COVID-19 Refunded as 5-Year Vouchers Without Consent
Only Usable on Seoul-Kuala Lumpur Route
Credit Refunds Instead of Cash Encouraged... "Government Must Protect Consumers"

Low-cost airline AirAsia refunded customers for tickets canceled due to COVID-19 in the form of vouchers.
/Provided by informant

On the 2nd, Mr. A (54) happened to see via email that an AirAsia voucher worth 3 million won had been issued. About two years ago, he had booked a family trip, but the AirAsia ticket was canceled due to the spread of COVID-19 and has only now been refunded. The problem is that the voucher can only be used on the Seoul to Kuala Lumpur route and must be used within five years. Mr. A said, "I received a voucher enough for five round trips to Kuala Lumpur alone. But I don't think I will travel to Kuala Lumpur more than twice in five years."

AirAsia customers who received refunds for tickets canceled due to COVID-19 are increasingly dissatisfied. Last month, AirAsia X, AirAsia's medium- to long-haul airline, compensated for more than 270,000 canceled tickets due to COVID-19. AirAsia stated that it provided customers with vouchers valid for five years and refunded $92 million (approximately 119.6 billion won).

The problem is that the voucher's usage is extremely limited. Currently, the flights where customers can use the vouchers are only the round-trip routes between Seoul and Kuala Lumpur. Even then, there are few opportunities to use them. According to Incheon International Airport, AirAsia X operates this route only three times a week?on Tuesdays, Thursdays, and Sundays?with one flight per day. Customers must board according to the seats assigned by AirAsia. AirAsia plans to expand medium- to long-haul routes to Japan, Australia, Hawaii, and New Zealand in the future, but it is unknown when this will happen.

Despite these restrictions, AirAsia refunded customers uniformly through vouchers without obtaining their consent. Mr. B (30), who had purchased tickets from AirAsia while preparing for a world trip before COVID-19, said, "I wanted a cash refund, but at some point, I checked my email and found that I was refunded with a voucher," adding, "There was no prior notice or option given before issuing the voucher."

Even if you don't want to use it again... Refunds are encouraged in the form of mileage

Photo by AirAsia Official Instagram Capture

AirAsia is known among travelers as an airline that does not easily provide refunds. When canceling a ticket, refunds can be received either in cash or as credit in the form of mileage, but cash refunds take a considerable amount of time. One customer complained that they waited up to two years. Although refund requests can be made through chat-based customer service, agents tend to encourage refunds via credit. The credit also has restrictions, such as needing to be used within two years. Mr. C (28), who is currently attempting a refund, explained, "I don't want to use AirAsia again, but the agent keeps encouraging me to accept a refund in credit," adding, "There is still no concrete answer, and I only receive emails saying they will refund me with credit."

There are also criticisms that this constitutes a consumer dispute. According to the Korea Consumer Agency's consumer dispute resolution standards, if an airline or passenger requests a contract change or cancellation due to an infectious disease outbreak, it qualifies as a consumer dispute. Professor Eunhee Lee of Inha University's Department of Consumer Studies said, "As COVID-19 social distancing measures have recently been lifted, travel agencies and airlines are starting to offer refunds to attract customers, but such customer damages may continue to occur," adding, "Government agencies such as the Fair Trade Commission should step in to protect consumers."