KUALA LUMPUR: Industry observers doubt that Capital A Bhd, formerly known as AirAsia Group Bhd, will be adversely affected by a petition from disgruntled passengers calling for a class action suit against it.
While the issue would affect its brand name to an extent, it would not seriously damage the airline's reputation, they added.
Former Malaysian Aviation Commission's (Mavcom) executive chairman Dr Nungsari Ahmad Radhi said the petition would affect Capital A's brand name in the future, but the impact would not rattle AirAsia's position as the best low-cost airline in Malaysia.
"Airlines all over the world are in dire straits, and are restarting. I am sure the surge in demand will create all kinds of operational problems for airlines.
"But the refund issue for AirAsia is not operational but financial. I saw that they had written back provisions they made after the creditors settlement agreement and recorded massive profits," he told the New Straits Times.
Nungsari was commenting on the petition launched a fortnight ago to gather passengers with grievances against Capital A for a class action compensation suit.
It was reported that the petition has been gaining support online.
Disgruntled passengers have been chasing the airline for refunds for flights cancelled due to pandemic restrictions as far back as two years ago.
The petition on change.org titled "AirAsia class action lawsuit for losses due to cancellations and changes of flights", launched over two weeks ago, had gained more than 2,200 signatures as of Tuesday afternoon.
Aviation consultancy Endau Analytics founder and analyst Shukor Yusof said the issue would not seriously damage the airline's reputation judging by the number of tickets sold for AirAsia's domestic flights.
Shukor said AirAsia's customers would unlikely turn away from the airline and opt for other airlines due to the refunds issues.
"AirAsia controls domestic flights in Malaysia. The competitors do not have the ability to take advantage of this.
"We just have to go by what AirAsia has publicly said. "Finalised" does not necessarily mean refunds are completed. Be more transparent. The airline's brand name is already strong in Malaysia," he said.
Meanwhile, Malaysia University of Science and Technology provost for research and innovation Geoffrey Williams said the petition would affect AirAsia's brand name especially if they sought a listing in the United States.
However, Williams said the low-cost airline business was often cited as a very competitive and "contestable" market, meaning others can easily come in and compete.
"I think AirAsia is already doing everything it can until the market fully recovers. After that when financial issues and PN17 go away it will be in good shape to list overseas as planned.
When contacted on Monday, a spokesperson said: "I'm still checking on this but don't think we will issue anything."
Supporters who had signed the petition claimed that they were unable to get in touch with the airline after their flights were rescheduled or cancelled, without the option to get a refund.
One of the supporters commented on the page that his flight got cancelled and turned into credits during the onset of the pandemic.
He, however, could not log into his account now and the airline had yet to resolve the issue.
Another user commented that her family was unable to check in online a day prior to their departure and was stuck in line at the airport for more than two hours.
They then were told that all of the seats on the flight were already booked although they had purchased the tickets earlier. The family had yet to receive a refund from Air Asia.
