The Dynamics of Consumer Protection in The Low-Cost Carrier (LCC) Aviation Business Amid Digital Transformation

Abstract

Consumer protection in the low-cost carrier (LCC) aviation industry has become a challenge in the era of digital transformation, particularly in terms of information transparency, passenger rights, and dispute resolution mechanisms. This study aims to analyze the effectiveness of consumer protection policies in the LCC business between Indonesia and Malaysia and evaluate the digital-based dispute resolution mechanisms implemented in both countries. The research employs a normative juridical method with a comparative approach, involving an analysis of consumer protection regulations and digital technology in aviation dispute resolution. The findings indicate that Malaysia has a more comprehensive regulatory framework through the Aviation Consumer Protection Code 2016 and strict supervision by the Malaysian Aviation, which enables digital dispute resolution with greater transparency. Conversely, Indonesia still faces challenges in regulatory effectiveness, weak airline compliance oversight, and limited utilization of digital technology in dispute resolution. This comparison highlights the need for Indonesia to enhance its online complaint system, strengthen law enforcement, and develop a more efficient digital-based dispute resolution mechanism. The digital transformation in the aviation industry must be accompanied by adaptive policies to ensure optimal consumer protection amid the rapid growth of the LCC sector.