DOTr hails CAB’s P6-M fine on AirAsia Move

Three smartphones showing the interface of the AirAsia Move mobile app. (Image from AirAsia)

MANILA, Philippines — The P6-million penalty slapped on AirAsia Move shows that “the government will not tolerate any form of abuse to Filipino passengers,” according to the Department of Transportation (DOTr).

On Friday, the DOTr commended the Civil Aeronautics Board (CAB) for imposing a penalty on AirAsia Move.

The DOTr said the company was penalized for “posting excessive and unreasonable airfares on its booking platform.”

“The DOTr will continue to protect the rights of the commuting public and to hold accountable those who violate established consumer protection regulations,” it added.

READ: AirAsia Move fine-tuning app amid ticket pricing probe

Earlier this month, the transportation department flagged AirAsia Move after receiving a complaint from Leyte Rep. Richard Gomez and Ormoc Mayor Lucy Torres-Gomez. The couple bought Philippine Airlines (PAL) flights from Tacloban to Manila via the booking app.

The two one-way tickets cost them P77,704. Had they booked directly on the PAL website, they would have been charged only P49,507 in total, the DOTr said.

AirAsia Move attributed this to “temporary data synchronization issues with flight pricing partners,” which has since then been resolved.

DOTr, AirAsia working on ticket pricing guidelines

Since then, the DOTr and AirAsia Group unit have been working together to craft plane ticket pricing guidelines.

Nadia Omer, chief executive officer of AirAsia Move, said earlier they were developing a technology in two to three months to cap the prices of plane tickets being sold in their app.

Omer said they were not aware of the price ceilings being imposed on the tickets. She said that airlines usually set the prices for the seats.

READ: AirAsia Move: DOTr orders its closure, raps over excessive air fares

The online travel agent platform said that third-party suppliers buy the tickets in bulk—which will be then sold via OTA platforms like Move.

Omer said Move only serves as an online marketplace for travelers, it stressed. It is a super app that offers travel services like flights, hotel accommodation and ride-hailing, among others.

The AirAsia subsidiary has yet to issue a statement as of press time.

The DOTr is also investigating other online travel agent platforms following this issue. Dizon previously advised passengers to buy their tickets directly from airlines to avoid being overcharged.

/rwd