S.Korea gov’t urges caution on using Vietjet Air, AirAsia

South Korean consumers have witnessed a substantial rise in complaints related to Vietjet Air and AirAsia, popular low-cost carriers used for travel to Southeast Asia.

Korea Consumer Agency (KCA) revealed that it received 329 consultations pertaining to Vietjet Air and 520 consultations regarding AirAsia from January last year to March this year. 

In the first quarter of 2023 alone, complaints jumped 127.9% for Vietjet Air and 33.6% for AirAsia compared to the previous quarter. 

Most of the issues with Vietjet Air pertained to cancellations and refusal of refunds. Since June 2021, the airline has been offering customers credit points for canceled tickets, including those canceled by the airline, but imposes a 45,000 won ($40) per person fee for voluntary cancellations.

However, these credits expire in one to two years and are non-transferable, leading to potential losses for customers.

In response, the Fair Trade Commission issued a corrective recommendation for Vietjet Air's policy in April, threatening enforcement actions if changes are not made within the specified period.

AirAsia, meanwhile, faced complaints about cancellations, refund refusals and breaches of contract. Customers have been particularly upset about prolonged refund processing times, in some cases surpassing two years, and poor communication about expected refund timings.

While AirAsia promises swift refund processing in the form of credit points, these credits cannot be withdrawn and are subject to usage restrictions.

"Consumers need to be fully aware that if they purchase tickets from Vietjet Air or AirAsia and subsequently decide to cancel, refunds may be provided as credit or face significant delays," a KCA official said.

"It is crucial for consumers to consider these factors before making their purchase decisions, and exercise extra caution if there is a possibility of schedule changes or other contingencies," he added.

Write to Seul-gi Lee at surugi@hankyung.com