The AirAsia MOVE app was created to help simplify the travel and booking process. However, the app recently received heat from the Philippine government for allegedly inflating flight prices.
According to news reports, the Philippine Ministry of Transportation has ordered the takedown of the AirAsia MOVE website following complaints that it illegally inflated airfares for its flights. One complaint alleged that the digital platform charged 77,000 pesos (approximately RM5,880) for a one-way ticket from Manila to Tacloban City via Philippine Airlines, almost three times the price quoted when directly booking from the airline’s website.
The cease-and-desist order was issued by the Philippine Civil Aeronautics Board, which sets price ceilings for airfares in the country. The aviation agency claimed that AirAsia MOVE hiked ticket prices following the increase in transportation demand to Tacloban City due to the closure of a key bridge. The authorities may also file a case for “criminal economic sabotage” against the digital platform.
Capital A Berhad and AirAsia MOVE have since issued a statement denying the allegations that they had manipulated airfares. In the statement, the company clarified that the app “displays flight inventory and pricing data as provided by its authorised upstream suppliers, including third-party aggregators and Global Distribution Systems (GDS)”. Capital A said the discrepancies in airfares were caused by temporary data synchronisation issues with flight pricing partners.
It also clarified that the technical discrepancy affected other booking platforms, including Agoda and Traveloka. However, the company said it took immediate steps to correct the pricing after identifying the problems in airfares. It also brought the matter up with the third-party pricing provider for immediate resolution and has taken steps to prevent any future recurrence.
There is no news on whether the cease-and-desist order has been lifted. However, Capital A said it’s working closely with the relevant authorities and will remain fully compliant with all regulatory requirements set by the Philippine government. What are your thoughts on this?
Sources: Straits Times, AirAsia Newsroom
