"VietJet Air and AirAsia, Refund Difficulties... Caution Needed"
Refunds Issued as Company Credit Upon Cancellation
Numerous Cases of Long-Term Refund Delays Reported
The Korea Consumer Agency urged caution on the 26th as it was found that VietJet Air and AirAsia, low-cost carriers (LCCs) frequently used by domestic consumers when traveling to Southeast Asia, are presenting unfavorable refund conditions or significantly delaying refund processing.
According to the Consumer Agency, consumer consultations related to VietJet Air and AirAsia in the first quarter of this year amounted to 329 and 520 cases respectively. The agency explained that these figures represent increases of 127.9% and 33.6% compared to the fourth quarter of the previous year.
When examining the consultations by reason, for VietJet Air, "cancellation, refund, and exchange delays or refusals" accounted for the largest number with 92 cases (66.2%). Among these, more than half, 55 cases, involved complaints about credits (accumulated funds that can be used like cash within a specific period). The Consumer Agency added that credits are non-transferable to others, so if consumers do not plan to use VietJet Air within the validity period, they inevitably suffer losses.
For AirAsia, out of 142 related consultations, most were "cancellation, refund, and exchange delays or refusals (75 cases, 52.8%)" and "contract non-fulfillment (63 cases, 44.4%)." In particular, AirAsia was found to be delaying refunds citing a surge in inquiries when consumers requested refunds. Among these, there were even five cases where delays exceeded two years.
The Consumer Agency advised that when purchasing tickets from VietJet Air or AirAsia, consumers should be fully aware in advance that refunds may be issued as credits or significantly delayed if cancellations occur. They emphasized that extra caution is necessary if there is a possibility of schedule changes.
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The Consumer Agency plans to recommend improvements regarding unfair trading conditions and business practices of these airlines and will continue to monitor the occurrence of consumer damages.
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