AirAsia’ booking app fined P6-M for overcharging

The Civil Aeronautics Board (CAB) has slapped AirAsia’s travel booking division with a P6 million fine for allegedly charging excessive fares, according to the Department of Transportation (DOTr).

The AirAsia Move app was accused of overpricing after a lawmaker flagged a booking amounting to P77,720 for two passenger tickets from Tacloban to Manila.

In response, DOTr ordered the immediate shutdown of the site and directed the filing of economic sabotage charges.

“The P6 million penalty imposed on AirAsia Move sends a clear message: The government will not tolerate any form of abuse to Filipino passengers,” DOTr said in a statement.

AirAsia Move maintained there was no price manipulation involved, claiming the incident was based on automated systems powered by third-party providers.

“We want to clarify that OTAs (online travel agencies) operate through third-party aggregators, aside from direct airline partners. These third-party aggregators directly engage with various airlines to sell their seats,” AirAsia Move CEO Nadia Omer said in a previous statement.

“OTAs do not have the ability to manually alter prices passed on from these suppliers or airline partners,” she added.

The CAB, however, disagreed with the explanation, saying the online travel agency violated the Air Passenger Bill of Rights and the Board’s fare regulations.