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AirAsia nixes plan to regulate air fares

AirAsia wants the government to reject proposals to regulate air fares in the country. “We hope that they won’t control the prices… In the international market, prices are not controlled,” Philippine AirAsia President and CEO Dexter Comendador said in a press briefing at the Iloilo International Airport.

Comendador said the House of Representatives asked the Civil Aviation Board to draft a law regulating air fares, which he said would prevent carriers from offering promotions and charging premiums for last-minute bookings.

“We sent them a position paper but they are ignoring it,” he said.

The position paper claims that setting floor and ceiling prices would skew average domestic fares to higher levels, while international fares will remain unchanged.

“This may paint an unfavorable picture of the domestic aviation industry and affect domestic tourism as passengers will opt to travel abroad where fares are lower,” it adds.

CAB Executive Director Carmelo Arcilla said he has yet to read the position paper.

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