Collective dispute mediation over AirAsia Zest's flight suspension

- Compensation totaled 713.54 million won for 116 claimants -

  Based on the collective dispute mediation by the Consumer Dispute Settlement Commission (CDSC; Commissioner Jeong Byeong-ha) of the Korea Consumer Agency (www.kca.go.kr), passengers were compensated for damages due to AirAsia Zest^* being found liable.

 * Following the acquisition of Zest Air by AirAsia in 2013-end, the airline changed its name to AirAsia Zest.

  The CDSC revealed that a collective dispute was settled via mediation in which 116 consumers filed a compensation claim against AirAsia Zest for suspending passenger flights for five days upon the Philippine government's flight ban measure in August 2013. Accordingly, on January 19, 2015, AirAsia Zest paid a total of 713.54 million won($658) in damages.

  In finding AirAsia Zest liable for passengers being subject to long delays from flight suspensions due to safety regulation violations, the CDSC decided that the airline should pay a minimum of US$ 200 and a maximum of US$ 700 by hours delayed to the passengers as well as the cost of return tickets if passengers made the purchase.

 Both parties accepted the CDSC's decision and the CDSC recommended AirAsia Zest to equally compensate other passengers who were not the collective claimants^*.

  * Roughly 7,700 passengers

  In line with revision of the Framework Act on Consumers in 2007, the CDSC introduced the collective dispute mediation system which quickly and uniformly resolves frequent small-claims disputes without having to bear the burden of legal costs and going through complicated court procedures. Of important note, the CDSC's decision has the same effect as a court-based mediation.

  Under the collective dispute mediation system, businesses which accept mediation results are requested to submit compensation plans to ensure that proper remedies are taken for consumers who did not participate in the collective dispute mediation.

  The above case proves the CDMC's capability and efficient system in handling collective disputes involving other airline services without consumers having to file lawsuits.